Apr 19

- George Carlin: The American Dream:


- The Political Conspiracy Behind the Bankruptcy of Detroit: Anatomy of a Crime  (WSWS, Feb 21, 2014):

The Workers Inquiry into the Bankruptcy of Detroit and the Attack on the DIA & Pensions was held Saturday February 15 at Wayne State University. The WSWS published an initial report on the meeting on February 17. Today we publish an edited version of the report to the Inquiry delivered by Larry Porter, assistant national secretary of the Socialist Equality Party and chairman of the Workers Inquiry.
Video coverage of Lawrence Porter’s full report to the Inquiry

[Click for slide 1]

[Click for slide 2]

Why was Detroit taken into bankruptcy?

In my report, I have the responsibility of uncovering the evidence of a crime.

Continue reading »

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Apr 07

- Government Confiscation And Lifting The Veil On “The 401(k) Scheme” (ZeroHedge, April 6, 2014):

From Presidential edicts of ‘MyRA’ being for your own good and “will never go down in value” to Poland’s ‘precedent-setting’ confiscation of public pensions funds for the good of the nation’s debt load; and from the IMF’s “one-off” wealth tax ‘idea’ to Europe’s recent consideration of ‘wholesale savings confiscations and enforced redistribution’, it appears Marc Faber’s warning that “from now onwards, the bailouts will also be at the expense of the asset holders, the well-to-do people. So if you have money I am sure the governments will one day take away 20-30% of my wealth,” is becoming more likely every day. As the following mini-documentary explains, confirming Ron Paul’s warning that “there is more chaos to come,” Jim Rogers’ fear that “they won’t take our bank accounts…they will take our retirement accounts,” is coming true.

- George Carlin: The American Dream (Video):

“…they want your fucking retirement money.

They want it back, so they can give it to their criminal friends on Wall Street.

And you know something? They’ll get it. They’ll get it all from you sooner or later because they own this fucking place.”


A short excerpt from the video “Life Is Worth Losing” (2005).

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Apr 05

And yes, they do want your retirement money:


- 12 Largest Banks Sued By Public Retirement Funds For “Conspiring To Rig Global FX Markets” (ZeroHedge, April 1, 2014):

Yesterday, we read with some amusement that Goldman has moved Guy Saidenberg, reportedly one of the greater profit centers at the firm – and how could he not be when he always traded against Tom Stolper’s recommendations which led to tens of thousands of pips in losses to those who listened to him over the past five years – from head of global foreign-exchange trading to a new role, as co-head of commodities.  Why did Goldman decide to scrap its once uber-profitable FX vertical and redo it from scratch? Simple – the ability to rig and manipulate FX markets, which are now under every global regulator’s microscope after the “Cartel” members so foolishly let themselves be exposed to the entire world, is no longer there, as confirmed last night by news that a dozen large investors have filed a joint lawsuit against 12 banks for “allegedly conspiring to rig global foreign-exchange prices.” Allegedly? Hasn’t everyone read the Cartel chatroom transcripts yet?

WSJ reports:

The class-action lawsuit, filed in U.S. District Court in the Southern District of New York late Monday, was from a group of investors across the U.S. and Caribbean, including city and state pension plans.

Continue reading »

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Mar 07

The Ukraine is on track to be the next country that will be raped & pillaged by the IMF financial mafia.

Greece has been warned before:

“The International Monetary Fund is that last thing you need. You will lose your sovereignty. It exercises terrorism. You will be raped in such a way, that it will be the worst pain you have ever felt.”

So get rid of your self-proclaimed puppet government or suffer.


- Pensions in Ukraine to be halved – sequestration draft (RT, March 6, 2014):

The self-proclaimed government in Kiev is reportedly planning to cut pensions by 50 percent as part of unprecedented austerity measures to save Ukraine from default. With an “empty treasury”, reduction of payments might take place in March.

According to the draft document obtained by Kommersant-Ukraine, social payments will be the first to be reduced.

“The Finance Ministry has prepared a plan for optimizing budget expenditures, which implies budget sequestration is to be in force before the end of March. For this purpose, in particular, it has been proposed to reduce capital costs, eliminate tax schemes and preferences and to cut social benefits, for example, 50 percent of pensions to working pensioners,” Kommersant-Ukraine reported.

Ukraine’s Ministry of Social Policy reported on December 1, 2013, that an average pension in Ukraine is $160.
Right after the formation, the self-proclaimed government in Kiev announced that the “treasury is empty”.

Ukraine’s new prime minister, Arseny Yatsenyuk, promised the government would do its best to avoid a default, adding that he expects an EU/IMF economic stabilization package soon. The plan has been formulated in record time, with the government’s strategy ratified in the Ukrainian parliament on February 27, and the document being sent for evaluation to the Ministry of Economic Development and Trade on March 3.

The European Commission offered Ukraine an 11 billion euro loan if Kiev agrees a deal with the IMF, European Commission President Jose Barroso announced on Wednesday. As a rule, help from financial organizations such as the IMF or the World Bank normally includes drastic austerity measures.

Continue reading »

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Feb 05

leviathan-to-eat-401k

- The Countdown to the Nationalization of Retirement Savings Has Begun (International Man – Casey Research, Feb 5, 2014):

Simply put, the new myRA program put forward by Obama is at best a sucker’s deal… or worse, it’s a first step toward the nationalization of private retirement savings. (Note: If you haven’t yet heard of myRA, I’d strongly suggest you read this excellent overview by my colleague Dan Steinhart.)

Even before the new myRA program was announced, there had been whispers about the need for the US government to assume some risk for US retirement accounts. That’s code for forced conversion of private retirement assets into government bonds.

Continue reading »

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Jan 31

Obama-Communist

- Bankruptcy In The USSA: Detroit Bondholders About To Be GM’ed In Favor Of Pensioners (ZeroHedge, Jan 31, 2014):

First, the Obama administration showed that when it comes to most preferred voter classes in the eyes of the Obama administration, some unsecured creditors – namely labor unions, and the millions of votes they bring – are more equal than other unsecured creditors – namely bondholders, and the zero votes they bring. Five years later we are about to get a stark reminder that under the superpriority rule of a community organizer for whom “fairness” trumps contract law any day, it is now Detroit’s turn to make a mockery of the recovery waterfall. As it turns out, bankrupt Detroit is proposing to favor pension funds at roughly double the rate of bondholders to resolve an estimated $18 billion in long-term obligations, according to a draft of a debt-cutting plan reviewed by The Wall Street Journal.

Continue reading »

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Jan 30

“By the skillful and sustained use of propaganda, one can make a people see even heaven as hell or an extremely wretched life as paradise.”
- Adolf Hitler

Related info:

- IRA Confiscation: It’s Happening

- Obama Introduces MyRA: The ‘No Risk, Guaranteed Return’ Retirement Savings Bond


MyRA_0

- The MyRA Propaganda Begins: “A Start To A Secure Retirement” Promises Treasury Secretary (ZeroeHedge, Jan 30, 2014):

You didn’t think the US could at first slowly, and then all of a sudden, expropriate retirement accounts and invest them in the “no risk, guaranteed return” MyRA Ponzi scheme introduced by Obama during the State of the Union address without lots of behavior-modifying indoctrination in the “friendly press” first now did you? Sure enough, here is the first major propaganda salvo, coming from none other than the US Treasury Secretary, Jack Lew, which will be published tomorrow across the McClatchy media empire. Continue reading »

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Jan 30

Related info:

- Obama Introduces MyRA: The ‘No Risk, Guaranteed Return’ Retirement Savings Bond


ira-confiscation

- IRA confiscation: it’s happening (Sovereign Man, Jan 29, 2014):

I have an old acquaintance named Sam who has a hell of a deal for you.

Sam is actually a pretty famous guy with a big reputation. Unfortunately he has been a bit down and out on his luck lately… but he’s trying to make a comeback. And Sam is prepared to float you a really great investment opportunity.

Here’s the deal he’s offering: you give Sam your hard-earned retirement savings. Sam will invest your funds, and pay you a rate of return.

Granted, the rate of return he’s promising doesn’t quite keep up with inflation. So you will be losing some money. But don’t dwell on that too much.

Continue reading »

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Jan 29

obama-myra

- Obama Introduces MyRA: The “No Risk, Guaranteed Return” Retirement Savings Bond (ZeroHedge, Jan 29, 2014):

Earlier today we hinted at what was coming in “Obama To Unveil Treasury IRAs.” Well, here it is, and it even has a catchy name. Presenting: the MyRA, and since it offers “guaranteed return and no risk” we now know where all the Fed’s bond trades will go to work once QE ends.

From the president:

Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks. That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans. Offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can

Or put another way – if you like your retirement account you can keep your retirement account.

And just like that, the “automatic” continuity to the Fed’s Quantitative Easing is ensured. Continue reading »

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Jan 28

20140128_ira_0

- Obama To Unveil Treasury IRA Plans, Or Planning For A Post-Monetization World (ZeroHedge, Jan 28, 2014):

Wondering who will take over the mantle of Treasury bond buyer now that the Fed is stepping away? Curious of the government’s next steps towards repression and control of wealth? Wait no longer. As the AP reports, President Obama will unveil a new retirement savings plan tonight that allows first-time savers to buy US Treasury bonds tax-deferred for retirement. Of course, this is not the mandatory IRA that remains somewhat inevitable (as the muddle-through fails) but is certainly a step in the direction we alerted readers to a year ago by which the government generously offers to help manage your retirement savings. Two words spring to mind… remember Poland.

Via AP,

Continue reading »

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Jan 24

spain1

- Seven Shocking Statistics On Spain’s Surging Joblessness (ZeroHedge, Jan 24, 2014):

Spain’s unemployment rate hit 26% again this week. Despite Rajoy’s please for people to believe things are getting better, that the crisis is over (even as Draghi proclaims it otherwise and Axel Weber warns it is still festering), Spanish local ex-pat newspaper “The Local” has uncovered seven statistics that will help you understand just how serious the situation is. What is perhaps even more surreal is that in a year in which the economy supposedly grew, they depleted their pension reserve fund by 15%…

  • *SPAIN WITHDREW EU11.6B FROM PENSION RESERVE FUND IN 2013
  • Spain pension reserve fund ends 2013 With EU53.7 bln

So apart from that, here is how bad it really is in Spain… Continue reading »

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Jan 02

- Retirement Unlikely For Many Blue-Collar Americans (Dec 31, 2013):

WASHINGTON – Tom Edwards grew up in a family that’s been cutting trees and hauling timber in the Pacific Northwest for more than a century. The Spanaway, Wash., resident says he has worked as a logger since he was a kid — it’s just what an able-bodied youngster was expected to do.

Now, at 53, with business in a slump and little money in savings, he’s pessimistic about his chances of retiring.

“It’s never going to happen. By the time I reach retirement age, there won’t be Social Security. There’s not going to be any money,” Edwards said. “I’ll do like my father did: I’ll work ’til I die.”

Continue reading »

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Dec 06

“They want your fucking retirement money!”
- George Carlin (2005)


- Detroit bankruptcy ruling triggers calls for pension cuts across the US (WSWS, Dec 6, 2013):

Within days of a federal judge’s ruling in support of the Detroit bankruptcy, the devastating implications for the working class across the US are becoming apparent. States and cities throughout the country are citing the legal precedent of the Detroit ruling to attack public employee pensions, initiating a new stage in the assault on workers’ rights and living standards.

Politicians of both big business parties, media outlets and financial institutions have welcomed the decision by Judge Steven Rhodes, hailing its categorical assertion that federal courts can override state and local guarantees of public workers’ pensions.

The Michigan Constitution declares that accrued pension benefits are “contractual obligations” that “shall not be diminished or impaired.” Many other state constitutions have similar provisions. But Rhodes brushed aside the Michigan Constitution in order to open the door to the gutting of pensions.

On Thursday, Illinois Governor Pat Quinn signed into law a pension bill that slashes benefits for retired as well as active state employees, in violation of the Illinois Constitution’s prohibition of such pension cuts. Described as a “landmark” law, the Illinois measure will raise the retirement age for younger workers by eight years, slash cost-of-living adjustments for current pensioners, and transfer many workers from state-paid pension plans to employee-paid 401(k) plans.

Continue reading »

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Dec 03

- Detroit Eligible To File Chapter 9; Pension Haircuts Allowed Bankruptcy Judge Rules (ZeroHedge, Dec 3, 2013):

Update, and it’s official:

  • JUDGE: DETROIT ELIGIBLE FOR IMMEDIATE BANKRUPTCY PROTECTION
  • DETROIT TO REMAIN UNDER BANKRUPTCY COURT PROTECTION, JUDGE SAYS

As somewhat expected – though hoped against by many Detroit union workers – Judge Steven Rhodes appears to have confirmed Detroit is eligible for bankruptcy protection (after pointing out that the city’s accounting was accurate and it is indeed insolvent) making this the largest ever muni bankruptcy.

  • JUDGE RHODES SAYS HE WILL ALLOW PENSION CUTS IN DETROIT’S BANKRUPTCY
  • DETROIT JUDGE: NOTHING SEPARATES PENSIONS FROM OTHER DEBT

Continue reading »

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Nov 23

- Why Your Pension Fund Is Doomed In Five Easy Charts (ZeroHedge, Nov 22, 2013)

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Nov 21

- 80 is the new 60 when it comes to retirement (New York Post, Nov 16, 2013):

American business has become a gray area. As in hair color.

Call it the new American nightmare: Running out of money in retirement is scaring the hell out of record numbers of older workers, forcing them to stay in the workforce.

Now 80 is the new 60 when it comes to retirement. Many older workers who finally clock out have sharply underestimated their financial needs in retirement, raising the specter of personal financial disaster.

Continue reading »

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Nov 04

- Kiss Your Pension Goodbye! (Miller’s Money Forever, Oct 31, 2013):

I was on the reunion committee for my 50-year high school class reunion a few years back. As we tried to track down classmates, we discovered that many—including a few I had known quite well—had died from lung cancer. These folks would light up a cigarette, joke about cancer sticks, cough, and make fun of their addiction. They ignored their symptoms and the constant warnings from their families and doctors, and they suffered the ugly consequences.

Former US Comptroller General David Walker appeared on 60 Minutes back in July 2007. His message? Our country is suffering from a fiscal cancer far more dangerous than any external threat. The federal government is broke. It has promised entitlement benefits—health care in particular—that it cannot afford. While few economists disagreed with Walker’s projections, politicians were unwilling to actually address the problem. From their standpoint, it’s always better to push the problem off to a later date in the vain hope (or delusion) that it will simply disappear.

Continue reading »

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Oct 28

- Detroit Pensioners Face Miserable 16 Cent On The Dollar Recovery (ZeroHedge, Oct 27, 2013):

If there is ever a case study about people who built up their reputation and then squandered it for first being right for all the wrong reasons, and then being wrong for the right ones, then Meredith Whitney certainly heads the list of eligible candidates. After “predicting” the great financial crisis back in 2007 by looking at some deteriorating credit trends at Citigroup, a process that many had engaged beforehand and had come to a far more dire -and just as correct – conclusion, Whitney rose to stardom for merely regurgitating a well-known meme, however since her trumpeted call was the one closest to the Lehman-Day event when it all came crashing down, it afforded her a 5 year very lucrative stint as an advisor. Said stint has now been shuttered.

The main reason for the shuttering, of course, is that in 2010 she also called an imminent “muni” cataclysm, staking her reputation once again not only on what is fundamentally obvious, but locking in a time frame: 2011. Alas, this time her “timing” luck ran out and her call was dead wrong, leading people to question her abilities, and ultimately to give up on her “advisory” services altogether. Which in some ways is a shame because Whitney was and is quite correct about the municipal default tidal wave, as Detroit and ever more municipalities have shown, and the only question is the timing.

Continue reading »

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Oct 26

- Dear Recently Graduated Millennials: Prepare To Work Until You Are 73 (ZeroHedge, Oct 25, 2013):

Our advice to recently graduating Millennials? Live long.

Because according to a just conducted analysis by NerdWallet, looking at the future of the average recent college graduate, and more importantly looking at the mountain of student loans each graduate will be saddled with and the implications for the earliest possible retirement age onset, Millennials may well have no choice but to postpone their retirement by about a decade, to the ripe old age of 73.

The reason for this, of course, is the magic of compounded interest: that “manageable” debt load grows and grows and grows even assuming one dutifully pays interest on time. And with unemployment at graduation running at 18%, that is a rather generous scenario. Still, even under base case assumption, the median student loan of $23,300 will end up costing students over $115K by the time they retire.

What does that mean in practical terms? “When will students be able to retire given that many are spending the first ten years (or more) of their careers paying off their hefty loans? NerdWallet… found that while retirement is certainly not impossible, for most it will have to wait until their early to mid 70s— over 10 years later than the current average retirement age of 61.” It goes without saying that all else is assumed equal. Alas, in the America’s welfare state future, few things will be equal, and most things will be far worse.

Which, one wonders, may be the secret plan after all: since by now everyone knows that the US’ welfare state is unsustainable for the mid- and certainly long-term future, what better way to avoid draining it, than to force those who would otherwise benefit into at least ten more years of work to pay off debts accumulated over 50 years earlier. Continue reading »

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Oct 06
Rhode Island State Treasurer Gina Raimondo, a Democrat, has declared war on public pensions

- Pension-Fund Looters Get Tax Breaks, Too (Rolling Stone, Oct 4, 2013):

by Matt Taibbi

A few weeks ago, I wrote a feature on pension reform in states like Rhode Island for Rolling Stone. Since the piece was sharply critical of alternative investments like hedge funds, I expected a heated response, and got one right away. In fact, a series of raving/chest-thumping emails from one Manhattan Institute hedge fund billionaire appeared in my email inbox about four and a half seconds after the piece went live on the Rolling Stone website.

This colorful personage calmed down eventually, though, and I figured a more sophisticated, for-public-consumption response would come from those quarters later on.

It finally showed up this week in GoLocalProv, when Aaron Henn, an “opinion-leading urban affairs analyst” who appears in striking tie-and-folded-arms pose in his column photo, wrote a piece in defense of the Rhode Island Treasurer profiled in the piece called “Matt Taibbi’s Deceptive Hatchet Job on Gina Raimondo.”

Continue reading »

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Sep 27

- “A Scam Of Unmatchable Balls And Cruelty” – Matt Taibbi On Wall Street’s “Triple-Fucking Of Ordinary People” (ZeroHedge, Sep 27, 2013):

What can one say: vintage Matt Taibbi.

From Rolling Stone

Looting the Pension Funds

All across America, Wall Street is grabbing money meant for public workers

In the final months of 2011, almost two years before the city of Detroit would shock America by declaring bankruptcy in the face of what it claimed were insurmountable pension costs, the state of Rhode Island took bold action to avert what it called its own looming pension crisis. Led by its newly elected treasurer, Gina Raimondo – an ostentatiously ambitious 42-year-old Rhodes scholar and former venture capitalist – the state declared war on public pensions, ramming through an ingenious new law slashing benefits of state employees with a speed and ferocity seldom before seen by any local government. Continue reading »

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Sep 27

Exposed: Enron billionaire’s diabolical plot to loot worker pensions (Salon, Sep 26, 2013):

How an Enron billionaire, Wall Street and a major “nonpartisan” foundation are quietly robbing American workers

This Pew-Arnold partnership began informally in 2011 and 2012 when both organizations marshaled resources to try to set the stage for retirement benefit cuts in California, Florida, Rhode Island and Kansas. With legislative success in three of those four states, Pew and Arnold created a formal partnership in late 2012 that targeted another three states, Arizona, Kentucky and Montana.

This formal partnership continues today, with the organizations issuing joint reports and conducting joint legislative briefings advocating cuts to guaranteed retirement income. It is widely expected that this partnership will continue working in these same states and potentially expand operations into Colorado, Pennsylvania, Oklahoma and Nevada.

Should an Enron Executive Be Dictating Public Pension Policy?

Continue reading »

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Sep 26

- George Carlin: The American Dream (Video):
A short excerpt from the video “Life Is Worth Losing” (2005).

Related article:

- Cyprus-Style Wealth Confiscation Is Now Starting To Happen All Over The Globe


- Looting Public Pensions: A New Think-Tank Study (Rolling Stone, by Matt Taibbi, Sep 26, 2013):

So we have a new feature out today, “Looting the Pension Funds,” that looks at the blame game being played with state and municipal fiscal crises and the hiring of ultra-expensive “alternative investments” like hedge funds as a key trend in an evolving pension reform movement. The story looks at the role in the organized nationwide “pension reform” movement played by right-wing financiers like former Enron billionaire John Arnold and fee-hungry Wall Street honchos like Third Point billionaire Dan Loeb.

I was originally turned on to this story by old friend David Sirota, who wrote a massive report on the subject for a new progressive think tank, the Institute for America’s Future. We talked about the subject a lot in the last months and timed it so that his report would also be released today. I urge everyone to read his report (you can find it here), which goes into far more detail than my piece did, especially about Arnold and his relationship with “centrist” organizations like Pew Charitable Trusts.

Continue reading »

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Sep 06

- Poland Confiscates Half Of Private Pension Funds To Cut Sovereign Debt Load (ZeroHedge Sep 6, 2013):

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. Continue reading »

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Jul 24

Before:

- Report: Michigan Judge Orders Detroit Bankruptcy Filing Withdrawn:

State Circuit Court Judge Rosemarie Aquilina ruled that the law allowing Gov. Rick Snyder (R) to authorize the bankruptcy filing was unconstitutional, according to Reuters. Aquilina ruled in favor of Detroit retirees and workers who argued the Michigan Constitution protected the retirement benefits in their city pension funds.

- Detroit Plans To Cut Pensions … Cries Of Betrayal

- After Detroit Bankruptcy Filing, City Retirees On Edge As They Face Pension Cuts (Washington Post)

“They want your f$$$ing retirement money!”
- George Carlin (2005)


- Detroit: federal judge halts legal challenges to bankruptcy filing (Guardian, July 24, 2013):

Ruling is major victory for city which had been sued by pension funds claiming bankruptcy threatened 22,000 employees

A federal judge agreed with Detroit on Wednesday and stopped any lawsuits challenging the city’s bankruptcy, declaring his courtroom the exclusive venue for legal action in the largest filing by a local government in US history.

The decision by US bankruptcy judge Steven Rhodes was a major victory for Detroit, especially after an Ingham County judge last week said that Governor Rick Snyder ignored the Michigan constitution and acted illegally in approving the Chapter 9 filing. That ruling and others had threatened to derail the case.

Retirees had sued, claiming the bankruptcy threatened their pensions that are protected by the constitution.

Continue reading »

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Jul 23

- The Tip Of The Iceberg Of The Coming Retirement Crisis That Will Shake America To The Core (Economic Collapse, July 22, 2013):

he pension nightmare that is at the heart of the horrific financial crisis in Detroit is just the tip of the iceberg of the coming retirement crisis that will shake America to the core.  Right now, more than 10,000 Baby Boomers are hitting the age of 65 every single day, and this will continue to happen every single day until the year 2030.  As a society, we have made trillions of dollars of financial promises to these Baby Boomers, and there is no way that we are going to be able to keep those promises.  The money simply is not there.  Yes, I suppose that we could eventually see a “super devaluation” of the U.S. dollar and keep our promises to the Baby Boomers using currency that is not worth much more than Monopoly money, but as it stands right now we simply do not have the resources to do what we said that we were going to do.  The number of senior citizens in the United States is projected to more than double by the middle of the century, and it would have been nearly impossible to support them all even if we weren’t in the midst of a long-term economic decline.  Tens of millions of Americans that are eagerly looking forward to retirement are going to be in for a very rude awakening in the years ahead.  There is going to be a lot of heartache and a lot of broken promises.

Continue reading »

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Jul 22

- Insolvent Spain Forced To “Borrow” From Social Security Fund To Pay Pensions (ZeroHedge, July 22, 2013):

Spain’s slow-motion implosion into an insolvent singularity has been one of the most amusing sideshows for over a year. The chief reason for this is the sheer schizophrenic and absurdist polarity between the sad reality, visible to everyone, and the unprecedented propaganda by the government desperate to paint a rosy picture. While on one hand the economic data shows very clearly the painfully obvious sad ending for this chapter of European integration, it continues to be punctuated almost daily by such amusing confidence games as Spain’s Economy Minister de Guindos telling anyone who cares to listen that the labor market is improving “beyond the seasonal pick up” and that Q2 GDP would be close to zero (because 0% GDP is the new killing it). That’s the good news.  The bad news is that as Reuters reports, and contrary to fairy tales of unicorns and soaring 0% GDP, Spain’s government is so insolvent, it was just forced to “borrow” from its social security reserve to fund pension payments.

From Reuters:

Spain tapped its social security reserve fund for the second time in a month on Monday, the Labour Ministry said, to help with extra summer pension payments as unemployment and retirement costs deplete government funds.

The government turned to the fund for 3.5 billion euros ($4.6 billion) on July 1 then for a further 1 billion euros on Monday. Spanish pensioners receive two cheques in summer and two over the Christmas holidays.

Continue reading »

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Jul 22

- Warning to all police, firefighters, schoolteachers: Most government pensions to be confiscated within a decade (Natural News, July 21, 2013)

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Jul 22

“They want your f$$$ing retirement money!”
- George Carlin (2005)


- Cries of Betrayal as Detroit Plans to Cut Pensions (New York Times, July 22, 2013):

Now there is a new worry: Detroit wants to cut the pensions it pays retirees like Ms. Killebrew, who now receives about $1,900 a month.

“It’s been life on a roller coaster,” Ms. Killebrew said, explaining that even if she could find a new job at her age, there would be no one to take care of her husband. “You don’t sleep well. You think about whether you’re going to be able to make it. Right now, you don’t really know.”

Detroit’s pension shortfall accounts for about $3.5 billion of the $18 billion in debts that led the city to file for bankruptcy last week. How it handles this problem — of not enough money set aside to pay the pensions it has promised its workers — is being closely watched by other cities with fiscal troubles.

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Jul 21

“They want your f$$$ing retirement money!”
- George Carlin (2005)


- After Detroit bankruptcy filing, city retirees on edge as they face pension cuts (Washington Post, July 21, 2013):

DETROIT — The battle over the future of Detroit is set to begin this week in federal court, where government leaders will square off against retirees in a colossal debate over what the city owes to a prior generation of residents as it tries to rebuild for the next.Soon after Detroit emergency manager Kevyn D. Orr and Gov. Rick Snyder (R) approved a bankruptcy filing Thursday, groups representing the 20,000 retirees reliant on city pensions successfully petitioned a county court to effectively freeze the bankruptcy process.

Now, city and state officials, who say the court ruling will not affect their plans, are asking a federal judge to hold hearings early this week to validate the bankruptcy and move forward with a strategy for Detroit to discharge much of its estimated $19 billion debt.

Orr has promised that retired city workers, police officers and firefighters will not see pensions or health benefits reduced for at least six months. But on Sunday, he said those retirement benefits will have to be cut down the road.

Continue reading »

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