Poland Confiscates Half Of Private Pension Funds To Cut Sovereign Debt

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Uh oh...

1.Government has too much debt to issue more debt
2.Government nationalizes private pension funds making their debt holdings an "asset" and commingles with other public assets
3.New confiscated assets net out sovereign debt liability, lowering the debt/GDP ratio
4.Debt/GDP drops below threshold, government can issue more sovereign debt.

Poland said on Wednesday it will transfer to the state many of the assets held by private pension funds, slashing public debt but putting in doubt the future of the multi-billion-euro funds, many of them foreign-owned.

Announcing the long-awaited overhaul of state-guaranteed pensions, 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.

He said that what remained in citizens' pension pots in the private funds will be gradually transferred into the state vehicle over the last 10 years before savers hit retirement age.

And of course, once Poland borrows like a drunken sailor using the new window of opportunity, and maxes out its new and improved limits, it will have no choice but to confiscate more assets, and to make its balance sheet appear better, until one day, there is nothing left in the private sector to confiscate. At that point the limit itself will have to be legislated away, and Poland will simply continue borrowing until one day there are no foreign lenders willing to take the same risk as the nation's private pensioners. At that point, Poland, which is in the EU but still has the Zloty, can just go ahead and monetize its own debt by printing unlimited amounts of its currency.
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Reuters and ZH
 
NEVER, EVER, trust the Government!

Believe the worst of them, and act accordingly.


JMO


OC
 
Old Codger said:
Beware Australia, THIS can happen to YOU!
....and probably will.

NEVER, EVER, trust the Government!
Believe the worst of them, and act accordingly.

OC
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But surely that couldn't happen now that the Liberal party is in charge.
 
At last more and more info is coming about the dangers of derivatives.. Much worse than Fractional Reserve Banking..

Bankers playing Monopoly with only the bankers getting free money to bet, no one goes to jail and collect with all money returned if you loose.

The only ? everyone doesn't know, is when? surely it will happen soon? One of the big banks go down and down go the rest. Thanks to the greed of derivatives.

Regards Errol 43
 
"The problem with socialism is that eventually you run out of other people's money [to spend]." Margaret Thatcher

One of the actual quotes is: "...and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people's money. It's quite a characteristic of them."

I firmly believe that Poland's scenario will play out around the World in not that distant future. That's why if you think you're going to retire even on your own super - think again.
Physical - all the way!
 
All Super Funds in Australia will be subject to upcoming new regulations requiring at first 10% be placed into "Safe Access Class" i.e. government bonds, then later 20%, 30%, 40%......... all the way to finally 100%

Why do you think the government is giving the public a bonus of "higher Superannuation rates" they are going to steal it all anyway.
 
tozak said:
All Super Funds in Australia will be subject to upcoming new regulations requiring at first 10% be placed into "Safe Access Class" i.e. government bonds, then later 20%, 30%, 40%......... all the way to finally 100%.
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Do you have a link for this?
 
Caput Lupinum said:
SMSF all the way baby. Snatch and run
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There's no guarantee that they won't go after SMSf as well in some way or another.
 
Caput Lupinum said:
I intend on leaving an IOU at the bottom of the safety deposit box. It's as good as a government bond
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Quite reasonable:
http://en.wikipedia.org/wiki/Promissory_note
A promissory note is a legal instrument (more particularly, a financial instrument), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. If the promissory note is unconditional and readily salable, it is called a negotiable instrument.[1]

Referred to as a note payable in accounting (as distinguished from accounts payable), or commonly as just a "note", it is internationally defined by the Convention providing a uniform law for bills of exchange and promissory notes, although regional variations exist. Bank note is frequently referred to as a promissory note: a promissory note made by a bank and payable to bearer on demand. Mortgage notes are another prominent example.
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I really can see some future Australian government doing something similar to this. Maybe not direct confiscation (except for the occasional levy to deal with some emergency or other), but certainly a specified percentage to be invested in a mandated government project or fund.
 
SilverPete said:
I really can see some future Australian government doing something similar to this. Maybe not direct confiscation (except for the occasional levy to deal with some emergency or other), but certainly a specified percentage to be invested in a mandated government project or fund.
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They can set a precedent by issuing say a "Cyclone Bond" that all Super funds must invest 5% of their assets or some such figure. Once the idea has legs they find other projects like roads, rail or other infrastructure to create "Bonds" around whilst they use taxpayer funds to pay down debt. Each "Bond" would be legitimate and reasonable to the general public, but in effect "death by a thousand cuts".
 
Old Codger said:
NEVER, EVER, trust the Government!

Believe the worst of them, and act accordingly.


JMO


OC
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Be careful silverpete will post an article about how you are vexatious towards the entire government, police, ATO and courts!

In the article you will be described as an "known anarchist" and a "fringe member of society". There will be lots of bold and red highlights too.

Silverpete will then go on to describe you as "dangerous menace" that is too free thinking and should be immediately placed into a re-education camp.

Then go on to say that he's part of the community of opposition towards the system. Too funny :P
 
Miloman said:
Old Codger said:
NEVER, EVER, trust the Government!

Believe the worst of them, and act accordingly.


JMO


OC
Click to expand...


Be careful silverpete will post an article about how you are vexatious towards the entire government, police, ATO and courts!

In the article you will be described as an "known anarchist" and a "fringe member of society". There will be lots of bold and red highlights too.

Silverpete will then go on to describe you as "dangerous menace" that is too free thinking and should be immediately placed into a re-education camp.

Then go on to say that he's part of the community of opposition towards the system. Too funny :P
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Actually, SilverPete posted an article covering the fact that someone had been declared a Vexatious Litigant by the NSW courts and had been jailed for attacking a judge with bags of paint.

Apparently this was a trigger for Miloman who was none too happy about it :lol:

Then the bit about re-education camps that came out of nowhere... someone's Jimmies seem to be seriously rustled.
 
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