What might happen to private retirement if this government’s spending spree is not stopped? Geithner’s latest blab tells us he is paying the bills even though we reached the debt ceiling. He’s doing it by “borrowing” from three Federal retirement funds, but Federal workers need not worry since the Treasury has to pay it back.
Is that something like social security where they took the contributions and put them into the general fund? I know it’s supposedly different, but it seems like Deja Vu all over again. Read here: Geithner stealing from three pension funds to run the government
In desperation, Republicans are using the debt ceiling as a bargaining chip in negotiating with this administration to reduce the deficit. Bernanke and the administration want them to be two separate issues because THEY DON’T WANT TO CUT A DAMN THING. It’s a revenue problem, they pontificate mindlessly, and they need to tax, not reduce spending. Of course, if they stopped regulating businesses into non-existence and put people back to work, that would fetch them some revenue.
They say they are paying for past sins. If so, how does this administration reconcile that with the fact that they have run 5 trillion in deficits for three years; have increased welfare/food stamps by 50%; doubled donations to the UN; have started another war to the tune of 2 billion dollars thus far; put through the healthcare bill which is dramatically adding to the deficit despite their misinformation. and I could go on. Read more here: Misinformation from the Feds
My question is, if they think this is okay, what about “borrowing” from all pension funds for whatever comes up? This administration is committed to the same big government that is unsuccessful in Europe. Remember the administration’s prior statements about converting pensions from 401K’s and IRA’s? In Europe, public and private pensions co-exist and function much as our social security system.
Chile privatized them and is doing well, but not so the nations of Hungary, Bulgaria, Ireland, Argentina, and France – they can’t give up their Big Fat Government. Hungary recently stole $14 billion in private pension funds for the public coffers. Anyone who balks loses their rights to the now government-only pension, but they still have to pay into it. Bulgaria demanded $300 million from private pensions – the trade unions kept it from being much larger according to the Christian Science Monitor. Poland cut private accounts by a third and diverted the money to public accounts. In Ireland, they decided they must take their “fair share” of private retirement funds. Ireland is drowning in a sea of socialist debt and is running out of other peoples’ money. They sure don’t want to face austerity measures and the riots that will follow, so, they naturally go to peoples’ private savings. Ireland’s theft will raise $675 million dollars.
If it happens in these nations, it can happen here and here: Stealing from the old
Look at this video on the nationalization of Argentina’s pension funds. Don’t think it can happen here? Well, our government has no problem robbing Federal pensions and I won’t hold my breath waiting for them to pay it back since they are broke and won’t cut a thing.
This administration will have no problem taking everyone’s pension fund. They need to find new and creative ways to pay for their Keynesian goal of spending us into prosperity, with the likes of Paul Krugman blasting this nonsense twice a week on the pages of The NY Times.