Best of the Week
Most Popular
1.Gold Price Target of USD 2,300 - GoldCore
2.Greece Banking System Collapse Monday as ECB Pulls the Plug, Capital Controls Ahead of GrExit - Nadeem_Walayat
3.Why British Muslims Are Leaving Elysium Paradise for Syrian Hell - Nadeem_Walayat
4.Greece BANKRUPT! Financial and Economic Collapse to Follow IMF Debt Default - Nadeem_Walayat
5.Extreme Gold/Silver Shorting - Zeal_LLC
6.European Empire Strikes Back Against Greek Debt Fantasy, Counting Down to GREXIT - Nadeem_Walayat
7.Gold And Silver – Three Choices: Sell, Hold, Hold and Add. A Trading Treatise - Michael_Noonan
8.Gold and Silver Price Headed for Breakdown - Jordan_Roy_Byrne
9.Greece Crisis OXI - Raul_I_Meijer
10.Flatline Investing and Dead End Debt Schemes - Doug_Wakefield
Last 5 days
Syriza Convinces Greece to Commit Suicide, GrExit Beckons, Market Reaction - 6th July 15
Financial and Commodity Markets Become Scary: Crash Point Or Turning Point - 5th July 15
A Revolutionary Pope Calls for Rethinking the Outdated Criteria That Rule the World - 5th July 15
Forget 'Haircut', Instead Syriza Plans Beheading of Greek Bank Depositors, Theft of Deposits - 5th July 15
The Pentagon’s 2015 Strategy For Ruling the World Through Endless War - 5th July 15
United States Celebrates the Disastrous Secession From Great Britain - 5th July 15
Greece Referendum Vote Result Forecast Yes Win, But Depression Will Continue - 5th July 15
The Great Greek Economic Depression - 4th July 15
Happy 4th of July Stock Market Analysis - 4th July 15
The Most Pressing Reason Yet You Want to Avoid Investing in Retail Stocks - 4th July 15
Fed’s Full Normalization and the Stock Market - 3rd July 15
The U.S. Dollar's 2014-2015 Rally: Wave 3 in Action - 3rd July 15
Stock Market Where are we? And where are we Going? - 3rd July 15
Xi’s Anti-Corruption Campaign Is Key to China’s Prospects - 3rd July 15
How the New Iranian Nuclear Deal Will Impact Crude Oil - 3rd July 15
China's Stock Market Rollercoaster Ride Continues - 3rd July 15
Gold Stocks Cheap to Buy but Not for Long - 3rd July 15
Capital Controls and a Bank Holiday in Greece… Here’s How You Can Profit - 3rd July 15
Greece's Varoufakis: I will Resign if there's a 'Yes' Vote - 2nd July 15
The Student Loan Bubble: Gambling with America’s Future - 2nd July 15
Inflation Is Lurking, but This Asset Can Protect You - 2nd July 15
Three Total Wealth Stock Investor Tactics You’ll Need Because Greece Isn’t Over - 2nd July 15
Why This $5.6 Trillion Investor Profit Boom Is Set To Take Off - 2nd July 15
Greek Debt Crisis: "Too late to prepare now" - Video - 2nd July 15
Guaranteed US Dollar Death Dynamics - 2nd July 15
The Greek Stress Test & The Reality Of Incremental Changes - 2nd July 15
Forget Drachmas Greece Syriza Government Could Instruct Central Bank to Print Euros! - 2nd July 15
Greece Debt Crisis Trigger for Stock Market Crash or Bull Rally? Video - 1st July 15
Gold Stocks Break Below 2008 Low - 1st July 15
SPX Stock Market Retracement May be Over - 1st July 15
Silver Tunnel Vision 'Experts' - 1st July 15
Gold And Silver - Monthly, Quarterly Ending Analysis - 1st July 15
Europe’s Controlled Demolition - 1st July 15
The End of Dow 18,000; Bailouts No Longer Extended  - 1st July 15
Athens Mayor: Greek Government Should Resign - 1st July 15
China Stocks - This Is What a Bubble Looks Like - 30th June 15
Stocks Plunge on Greece Euro-Zone Financial Armageddon Blackmail - 30th June 15
Greece Crisis Shows Importance of Gold as Europeans Buy Coins and Bars - 30th June 15
Stock Investors Express Route to Profits in the Healthcare Sector - 30th June 15
Beyond the Greek Impasse - 30th June 15
Gold GDXJ : Impulse Move Pending - 30th June 15
Fed Interest Rate Increase Could Be Best Thing to Happen to Gold - 30th June 15
Marc Faber - Greece is Basically Bankrupt - 30th June 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

China Stocks - Where are they going?

Obama Retirement Care

Politics / US Politics Nov 14, 2012 - 03:38 AM GMT

By: Jeff_Berwick

Politics

Wendy McElroy writes: How long will starving governments keep their itchy fingers off your private pension funds? Only as long as they can't get away with it. And governments are literally getting away with murder these days. Why not your pension money, too?


It happened in Argentina, Hungary, Ireland, and France. Here's how it will happen in America. After another financial crisis, Congress will “protect” you by requiring managed retirement plans to include X percent of Treasury bonds at a return well below inflation.

Or, perhaps, government(s) will get innovative with pensions like California. Governor Jerry Brown just signed Bill 1234 which creates America's first state-sponsored and state-managed retirement program for private sector workers. Every private employer with 5 or more workers without an existing employer-sponsored pension plan will automatically deposit 3% of the workers' income into a government-run retirement plan. Who is eligible? Every employee who does not go through the process and paperwork to opt-out; and they have to opt-out every 2 years. Otherwise, they are opted-in, over and over again.

The scheme is expected to put $6.6 billion under state management in the first year. The presumed manager is California Public Employees’ Retirement System (CalPERS) – the biggest U.S. pension fund with 1.6 million public sector employees.

CalPERS is in fiscal death throes. According to state Senator Mimi Walters, “California has... a terrible track record when it comes to maintaining its public pension systems; the systems are currently a combined $240-$500 billion in debt.” And, so, one type of investment explicitly permitted by the bill is “United States government and government sponsored entity debt obligations.” The government can use private pension funds to purchase public debt at a return of 3%. Worse, CalPERS must pay public employees first from dwindling funds.

That's adding insult to injury; when your pension funds are looted, they will pay for the retirement ease of bureaucrats and civil servants. No wonder Walters calls the bill “a cynical effort to prop up the floundering public employee pension debt with new funds from private investors, sent in by employers who are forced to participate under penalty of law.”

Bill 1234 will not prop up the public employee pension for long because CalPERS is a Ponzi scheme. Private Ponzi schemes have a relatively short lifespan after which the perpetrators are fined or jailed. Public Ponzi schemes live longer because laws can force more and more new people into “investing”. But after the public Ponzis go bust, the bureaucrats will collect the pensions that are your money, and go home.

The most ominous aspect of this money grab? California is a trend setter not merely in culture but also in politics.

Treat your pension fund as you do your wallet. Do not leave it lying around. Do not flash it in front of the power-drunk thugs that pass for politicians. Do not hand it over to strangers called investment managers for “safe keeping.” Those strangers will obey the laws passed by thugs; those strangers will betray you without a second thought. Hang on to your wallet; manage your own pension funds. If you have an IRA, then turn it into a self-directed IRA.

If you have significant assets – enough to attract the attention of desperate elected bandits – then move your assets out of their reach by getting those assets out of the country.

Setting up protected offshore bank accounts is one way to do so. And it doesn't have to be that hard or complicated, especially when you get the right help.

You should keep some precious metals within easy reach, just in case of a currency collapse. But if you have large amounts of gold within the geopolitical borders of the United States – too much to keep beneath the government's radar – then you should be worried. And you should be looking for a way to get your gold out of Dodge. At some point in the near future, if things get bad enough, you may want to consider getting yourself out of Dodge as well. 

Wendy McElroy is a renowned individualist anarchist and individualist feminist. She was a co-founder along with Carl Watner and George H. Smith of The Voluntaryist in 1982, and is the author/editor of twelve books, the latest of which is "The Art of Being Free". Follow her work at http://www.wendymcelroy.com.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2012 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History