Poland Confiscates Half Of Private Pension Funds To "Cut" Sovereign Debt Load

[El Laton Caliente]

Poland Confiscates Half Of Private Pension Funds To "Cut" Sovereign Debt Load

While the world was glued to the developments in the Mediterranean in the past week, Poland took a page straight out of Rahm Emanuel's playbook and in order to not let a crisis go to waste, announced quietly that it would transfer to the state - i.e., confiscate - the bulk of assets owned by the country's private pension funds (many of them owned by such foreign firms as PIMCO parent Allianz, AXA, Generali, ING and Aviva), without offering any compensation. In effect, the state just nationalized roughly half of the private sector pension fund assets, although it had a more politically correct name for it: pension overhaul.

By way of background, Poland has a hybrid pension system: as Reuters explains, mandatory contributions are made into both the state pension vehicle, known as ZUS, and the private funds, which are collectively known by the Polish acronym OFE. Bonds make up roughly half the private funds' portfolios, with the rest company stocks.

And while a change to state-pension funds was long awaited - an overhaul if you will - nobody expected that this would entail a literal pillage of private sector assets.

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.


LOTS more: http://www.zerohedge.com/news/2013-0...eign-debt-load

This happened in Zimbabwe, Argentina, Crete, Greece, not sure about Spain and Italy. The Dems have proposed it under Clinton and now Obama. If not stopped, this is going to happen here.

[Penguin]

I think you are right. They have stated their desires to do the same thing here. It is more or less right out of the Marxist play book of redistribution of wealth. If it continues to go unopposed I think the likely hood of it happening here increases.

It would seem that now the markets have become fairly well accustomed to private stores of wealth being confiscated by governments to keep themselves afloat. Both private pension funds as well as personal bank accounts have been taken. I am sure if they can take any other sources of money they will.

Personally I think this is a bad trend with serious implications here in the US. We are far from solid economic footing ourselves. If anything I dare say out situation if far worse. I don’t know what to do. On the one hand I would love to retire some day. On the other when you see economic Armageddon building on the horizon sometime before you get there do you dare put money away where it will probably just be taken later? On the other hand if you don’t it will be hard to make it to retirement if the crap doesn’t hit the fan.

[ready]

"You didn't earn that."

Obama

[Penguin]

Like bloody hell I didn't. I have busted my but for everything I got. I still remember when he said it though. The gall of the man.

[stinker]

One difference, our Marxists won't settle for as little as a measly 50%.

They do that, they will take it all.

[El Laton Caliente]

The best comment from the site:

it's complicated..... involves illusion twerking and big greasy foreheads

LMFAO!!!!

Read the comments, they are GREAT!

[Aggressive Perfector]

Call me what you will, but I'd be shooting by now.

[N/A]

I'd think if you planned for this, you would keep some cash locked up at home, and kept some money invested in gold/silver also locked up at home.

[El Laton Caliente]

Another classic comment:

All your toilet paper are belong to us.

[btcave]

This isn't marxist per se. This benefits their banks and their lapdog government. This allows for continued government vote buying. Poland fell so far in such a short time too. Pity. They were the hole in the dike that eventually broke the iron curtains wall.

[cevulirn]

I'd think if you planned for this, you would keep some cash locked up at home, and kept some money invested in gold/silver also locked up at home.

I normally do... but I'm trying to buy a house, and the banks like to see money in the bank, not cash appearing from nowhere.

[rci2950]

all this talk of gold and no mention of lead.

[stinker]

all this talk of gold and no mention of lead.

That's only properly used for making deposits, not withdrawals.

Most of the civilized world tends to frown on withdrawals with lead involved in the transaction.

[Kadmos]

This happened in Zimbabwe, Argentina, Crete, Greece, not sure about Spain and Italy. The Dems have proposed it under Clinton and now Obama. If not stopped, this is going to happen here.

...And Britain, France, India, etc.


It has to happen. It's either change the system a bit, or watch it fail. It's not like we haven't known our own system was in trouble for over 20 years now.

[L1A1Rocker]

I was once concerned that the feds would do this here. I'm not so concerned about that anymore. They'll just do what they've been doing, just add zeros to the end of the feds computer ledger. It'll work fine like that, up until the point that it breaks down. . .

[Oswald Bastable]

...And Britain, France, India, etc.


It has to happen. It's either change the system a bit, or watch it fail. It's not like we haven't known our own system was in trouble for over 20 years now.

How about not put crooks in charge of the system instead?

But I'm not surprised you're in favor of the illegal confiscation of legally earned wealth.

[Kadmos]

How about not put crooks in charge of the system instead?

It's not a matter of crooks, it's a matter of burden on the system. We aren't the only country with a baby boom after WWII

But I'm not surprised you're in favor of the illegal confiscation of legally earned wealth.

First, it's not illegal. Second it's not confiscation.

It's moving part of the funds of retirement accounts from private institutions (which are often government backed in the first place) to public institutions.

It's not "stealing half a persons life savings"...it's changing who holds the money for you.

Moves like this allow the public retirement system to stay afloat, which in all likelihood is going to make a far greater positive impact on the people than if the private retirement funds failed completely.

It's all fine and dandy to want private retirement funds, but the fact is most people can't (or don't) manage to put enough away to see them through their old age. They depend on the public system being there.

[AKM]

I used to think that this confiscation of one's retirement savings would matter to Americans and it would make a difference at the polls. The reason that it will not make any difference is because we have so many under privileged pieces of shit that do not have any savings of their own and just like right now, they don't have any skin in the game, like paying taxes, so they don't mind if taxes get raised and they sure as hell aren't going to give a shit about your hard earned savings being stolen and then given back to them in the form of welfare.

[Schuetzenman]

I used to think that this confiscation of one's retirement savings would matter to Americans and it would make a difference at the polls. The reason that it will not make any difference is because we have so many under privileged pieces of shit that do not have any savings of their own and just like right now, they don't have any skin in the game, like paying taxes, so they don't mind if taxes get raised and they sure as hell aren't going to give a shit about your hard earned savings being stolen and then given back to them in the form of welfare.

Nah, the average zombiefied American just doesn't believe yet that the Gov would fuck them like that and take their money in one fell swoop. I think that if they did we might actually get the 2nd American Revolution. Because if Gov. can take your retirement funds you have zero ownership of anything and zero security.

[AKM]

Nah, the average zombiefied American just doesn't believe yet that the Gov would fuck them like that and take their money in one fell swoop. I think that if they did we might actually get the 2nd American Revolution. Because if Gov. can take your retirement funds you have zero ownership of anything and zero security.

I really do hope you are right! If this kind of shit happened here and it didn't wake the dumbmasses up, then nothing will!