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| Europe |
| Europe Starts Confiscating Private Pension Funds |
| 2011-01-04 |
| The U.S. isn't the only place that's facing a major pension fund crisis. The Christian Science Monitor has this alarming report: People's retirement savings are a convenient source of revenue for governments that don't want to reduce spending or make privatizations. As most pension schemes in Europe are organised by the state, European ministers of finance have a facilitated access to the savings accumulated there, and it is only logical that they try to get a hold of this money for their own ends. In recent weeks I have noted five such attempts: Three situations concern private personal savings; two others refer to national funds. The most striking example is Hungary, where last month the government made the citizens an offer they could not refuse. They could either remit their individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it). In this extortionate way, the government wants to gain control over $14bn of individual retirement savings. The article goes on to detail other pension grabs in Bulgaria, Poland, France and Ireland. Obviously, this is a cautionary tale for America. If fiscal austerity becomes a real issue in the U.S. the way that it's been reaching critical mass in Europe -- don't think that U.S. lawmakers regard your either your personal wealth or money they might owe you as sacrosanct. Government has a habit of looking out for itself. "Thou Shalt Not Covet/Thou Shalt Not Steal" (oops - The Ten Commandments are banned by Socialists - for a reason don't ya know?) |
| Posted by:Craviting Craising2163 |
| #19 Interesting concept there. Out here there was a sort of gift card bill of rights or something. Apparently enough people do not care for or understand expiration dates, which must be a hootin' surprise every glass of milk. Still, that money was spent at/in a business and its the business' money not the gov's; gov got/gets the sales tax. |
| Posted by: swksvolFF 2011-01-04 22:00 |
| #18 Good one, Barbara. That's a keeper. |
| Posted by: Grunter 2011-01-04 21:07 |
| #17 "So spend the silly things, or regift them to someone who will. Or give them to charity." Or (if they're to someplace national, like Starbucks or LL Bean; won't work for a one-location local business) trade unwanted/unused gift cards to Plastic Jungle for either cash or Amazon credit. I've had good luck with them. A $50 gift card got me $44 in Amazon credit, which allowed me to buy something for my house that I needed but didn't have the money to pay for. (Had enough to pay half, however - the credit covered the rest.) All done over the internet; P.J. even provided the envelope label for me to print and use to mail them the card. |
| Posted by: Barbara Skolaut 2011-01-04 19:22 |
| #16 The new congress will start shortly. These people know who put them there. I am beginning to be more optimistic. Why, because the media and Dem's are warning the new guys not to change anything. Bluster and bluff is all they got. O however is is his own world. Executive order will be his way around this road block. He is boxed in and doesn't have a clue. He will be stopped or marginalized. |
| Posted by: Dale 2011-01-04 19:09 |
| #15 as Dr. Steve said the other day - If the POTUS and Congress tried this - it would cause a rebellion with real violence. |
| Posted by: Frank G 2011-01-04 19:01 |
| #14 where last month the government made the citizens an offer they could not refuse. They could either remit their individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it). My guess is Obama is watching this very carefully... |
| Posted by: CrazyFool 2011-01-04 18:45 |
| #13 Hmmm...during California's on-going fiscal crisis, it was disclosed that 5 retired chiefs of police were raking in pensions of over $500,000 per year. And Los Angeles Police Protective League donut-dunkers get pensions equalling 90% of their wages for the last 5 years of service. Police costs approach one-third of city budget, even with declining crime rates. Face it: many pension plans are unfunded because the benefits' package is the product of EXTORTION, with cops being the worst thieves. Any public referendum proposition viz dealing with past EXTORTION, will produce over 95% support. Reminder: government court-officers form less than .18% of the population. The 99.82% majority can step on them at will. |
| Posted by: Shemp Fluck6002 2011-01-04 17:38 |
| #12 Social Security was originally intended as a safety net for the poorest of the poor When Social Security was first enacted, average life expectancy was around 60 years old, and the Baby Boom was not even a gleam in several million fathers' eyes. Someone said that Social Security "was meant to be a floor, not a whole house". Now we have had two generations expecting, to some degree, that Uncle Sugar will take care of everything. The culture has eroded people's work and savings ethics, and the politicians don't have the will to make changes to the system because too many people scream about changes. |
| Posted by: mom 2011-01-04 15:37 |
| #11 New Jersey wants to take any gift card that was purchased but not used if older than 3 years. Talk about theft! So spend the silly things, or regift them to someone who will. Or give them to charity. Surely someone can use socks from Target or printer ink from Best Buy... or lunch at that terrible restaurant you wouldn't be caught dead in. |
| Posted by: trailing wife 2011-01-04 15:29 |
| #10 New Jersey wants to take any gift card that was purchased but not used if older than 3 years. Talk about theft! |
| Posted by: Deacon Blues 2011-01-04 15:21 |
| #9 I've always figured that Social Security would be useless by the time I retired (in about 15-20 years from now) - and all my contributions stolen. Looks like I'm not far off. Also looks like the're wanting to steal my 401K and Pension plan too. |
| Posted by: CrazyFool 2011-01-04 14:50 |
| #8 Another method of savings or pension seizure we COULD possibly see in the US is a "needs based" Social Security System. I fear this much more than some of the Euro schemes. I've been predicting that one for years, Besoeker. I have long assumed that by the time Mr. Wife retired, our Social Security payout would be reduced by $1 for each $1 in private pension payout or retirement savings redeemed. And since I worked for pay one year less than needed to receive SS on my own account, my withholdings were functionally donated to current retirees. Social Security was originally intended as a safety net for the poorest of the poor in their final years. There is no way, given the ratio of young workers to retirees, never mind the current financial situation, that we would long be able to afford it being anything else, no matter what promises were made. |
| Posted by: trailing wife 2011-01-04 14:40 |
| #7 He lost Congress. There's no one to declare him emperor unless he puts the crown on his own head No problem. Just invent a crisis..... |
| Posted by: CrazyFool 2011-01-04 13:40 |
| #6 Another method of savings or pension seizure we COULD possibly see in the US is a "needs based" Social Security System. I fear this much more than some of the Euro schemes. |
| Posted by: Besoeker 2011-01-04 13:04 |
| #5 At the rate we are going, Obama will seize all retirement assets after he is declared emperor in mid-2012. He lost Congress. There's no one to declare him emperor unless he puts the crown on his own head, like Napoleon... but Napoleon had the love of the army. |
| Posted by: trailing wife 2011-01-04 12:16 |
| #4 At the rate we are going, Obama will seize all retirement assets after he is declared emperor in mid-2012. |
| Posted by: DarthVader 2011-01-04 00:54 |
| #3 I understand Russia confiscated about 99% of everyone's retirement funds a while back. They had police out with rifles on every street corner until people calmed down. Which they did. Of course, they don't have any guns. |
| Posted by: gorb 2011-01-04 00:53 |
| #2 Closer to home, New Jersey is trying to figure out a way to collect (confiscate/steal) on all those unredeemed gift cards folks have. They have already lost in at least one round in the courts, but they haven't tossed in the towel yet. |
| Posted by: USN,Ret 2011-01-04 00:40 |
| #1 When Bernanke gets through debasing the dollar, he won't need to confiscate anyone's retirement savings, not directly anyway, but it will amount to the same thing. |
| Posted by: Anguper Hupomosing9418 2011-01-04 00:09 |