Forget Cyprus, Poland confiscates nations pension funds to pay for their debt

First there was Cyprus, where the EU and the world became exposed to a new form of bank bailout called the ?bail in?. ?Now, Poland has taken the next step when on Sept. 4 the government seized and confiscated half of the nations private pension funds, and collateralized them to help towards paying off their sovereign debts.

Interestingly enough however, the primary function of this confiscation is not about paying off the debt in a move towards eventual solvency, but to expand their collateral base to allow them to borrow even more money, and raise their debt limits.

On Wednesday, Prime Minister Donald Tusk said private funds within the state-guaranteed system would have their bond holdings transferred to a state pension vehicle, but keep their equity holdings.?The funds would effectively be left with only the equities portions of their assets, even this would be depleted, and there will be uncertainty about the number of new savers joining.

By shifting some assets from the private funds into ZUS,?the government can book those assets on the state balance sheet to offset public debt, giving it more scope to borrow and spend. Finance Minister Jacek Rostowski said the changes?will reduce public debt by about eight percent of GDP. This in turn, he said, would allow the lowering of two thresholds that deter the government from allowing debt to raise over 50 percent, and then 55 percent, of GDP. Public debt last year stood at 52.7 percent of GDP, according to the government?s own calculations. ? Reuters via Zerohedge

So besides having deposits in a bank now becoming a risky investment, nation states within the European Union are showing that storing money in a retirement and pension fund is also an easy way for governments to seize needed capital, with little recourse for the actual holder of the account.

As noted in a article published earlier this week, documents, court rulings, and government plans are already in place to seize any and all accounts that are controlled in the financial landscape of the banking cartel. ?The question now that needs to be asked is, would the United States would ever seek to confiscate pensions, retirements, or any investment funds from the American people, should a financial crisis like 2008 appear again.

The answer to that is a resounding yes, as bills in Congress have already been proposed during the time Nancy Pelosi was Speaker of the House. ?Additionally, President Obama just last year began reviewing processes and programs to work towards confiscating and nationalizing all pensions, 401k?s, and retirement funds as a means to fund the budget deficit, and expand the debt ceiling.

National Seniors Council Director Robert Crone warns: ?This whole issue is moving forward very quickly.? Already?there is a bill requiring all businesses to automatically enroll their employees in IRA plans in which part of every employee?s paycheck would be automatically deducted and deposited into this account.?If this passes, the government will be just?one step away from being able to confiscate all these retirement accounts.? ? Silver Doctors

Account confiscation without redress is no longer a conspiracy theory, but conspiracy fact. ?In less than a year, account holders in the U.S. (MF Global), Cyprus (Bank Deposits), and now Poland (Pension Funds), have all had their money and assets taken from them, and given to government agencies or banking entities to cover debts and obligations created from their own risky investments. ?And with a global economic crisis coming once again on the horizon, the trillions of dollars sitting in private accounts held in banks and investment houses is a very easy and assumable target for the government to acquire in the name of solvency.

Kenneth Schortgen Jr?is?a writer for?Secretsofthefed.com,?Examiner.com, and hosts?the popular?web blog,?The Daily Economist.?Ken can also?be heard Friday evenings giving an weekly economic report on the?Angel Clark radio show.

Source: http://www.secretsofthefed.com/forget-cyprus-poland-confiscates-nations-pension-funds-pay-debt/

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