Posted: Dec. 3rd, 2012
The Drum beat of “Pension reform has started. To Be sure many pensions are radically underfunded in America-especially Public Sector pension funds. Pensions are a pretty simple formula: Money in, investment income and money out. If any one of these components is out of whack you have a problem. Right now many big pensions funds have problems with two or three of these components. In the case the most Public Sector and Union Pension funds -they never were sustainable. Yet the politicians catered to these groups nicely mandating skimpy contributions and massive benefits for members. Just to be fair-Corporate pension funds are hurting also as investment income is down.
Obama and the “Progressives” have a great solution for this “Pension 911″. Discussions have started on “Government Guaranteed Annuities” as an alternative to pensions and 401k’s and IRA’s. See story:
“Obama Pension Care – Obama Begins Push for New National Retirement System.(NSC).A recent hearing sponsored by the Treasury and Labor Departments marked the beginning of the Obama Administration’s effort to nationalize the nation’s pension system and to eliminate private retirement accounts including IRA’s and 401k plans, NSC is warning. The hearing, held in the Labor Department’s main auditorium, was monitored by NSC staff and featured a line up of left-wing activists including one representative of the AFL-CIO who advocated for more government regulation over private retirement accounts and even the establishment of government-sponsored annuities that would take the place of 401k plans.”
So lets discuss where this is going. The Government will offer you a “safe” alternative to all those risky stocks and Bonds and Cash by first incenting and then telling you to give them these assets in exchange for a “safe” Government guaranteed annuity. Why would they do this?
1-The US has over $16 trillion in Pension Assets with over $2 trillion in self directed Retirement funds (IRA, 401k, etc). The Government sees these funds as an easy target to extend it’s unsustainable spending another 2-3 years.
2-The Federal government gets hard assets lump sum vs. giving out IOU’s for mostly future payments -is a good business deal! What do you get? A government IOU in the form of a piece of paper (Think Social Security)!
3-They control you through you through your annuity -you vote for the politician that promises the most (Democrats).
4-CONTROLLING PUBLICLY TRADED COMPANIES! Here is the elephant in the room that Obama sees and you don’t.
MOST RETIREMENT ASSETS HAVE AN EQUITY COMPONENT AND OWN STOCK. BY COLLECTING AND CONCENTRATING STOCK OWNERSHIP FROM ALL OF THESE FUNDS AND ACCOUNTS THE GOVERNMENT BECOMES THE LARGEST OR AT LEAST A SIGNIFICANT SHAREHOLDER IN MOST US BASED PUBLIC COMPANIES!
Therefore Obama/Government can appoint their own political people to run for the Board of Directors of thousands of companies thereby extending ownership and control throughout the economy. Think GM to the 100th power! Your Company will most likely have an Obama approved Director on the board of the Company where you work.
This would be tantamount to Nationalizing the US Economy overnight-a leveraged buyout of our country with your money.
Yes-this is what fundamental transformation looks like…
Beware the Pension 911 and Government annuities-they are coming!