Posted on 11/14/2008 10:24:06 PM PST by bruinbirdman
As these late autumn days of financial disaster wind down into a winter of discontent across the world, the United States Congress is discussing a step that will surely signal the final collapse of America as anything more than a bankrupt and possibly failed state.
What is this subject? The subject is none other than pensions, the last refuge of money and the last source of fast cash for spend thirsty politicos. In committees the US Congress is hearing testimony from various leftist professors on how to redistribute, read spend, the vast amount of money accumulated by the 60 million Americans at or near retirement age.
What most of you, my dear readers, do not understand, is that in America there is no longer such a thing as a pension fund. These are dinosaurs, the last of which are paying out their monies, on the way to total extinction. To replace these the government of America created tax exempt (to a certain dollar per year value) accounts called 401Ks which are than invested into the stock markets, thus a great boom for the number one owners of the United States government, banks. But the banks are now themselves bankrupt and hold much less sway in DC, even as appetites to spend have grown amongst the One Party, Two Branch politicos. Sure there is Social Security, but even by under rating inflation by 2/3rds, and thus upward payment adjustments, for over 20 years the United States government is simply broke and does not have the actual money to pay Social Security for the vast Baby Boomer generation, now retiring.
This is because all the money, from day one in 1936, was spent and not invested. Each working generation pays for the retiring generation. What changed? The Baby Boomers aborted 40 million babies and thus are now larger than the combined next two generations. In their Christless greed to spend on themselves, they have not only damned their souls through the murder of children but their old age as well, to poverty.
But even when Social Security pays, for most people, the $2,000 to $3,000 it does pay per month is hardly the money to live off of, let alone pay for ever more expensive medicines. The medical costs in America routinely grow between 15-20% per year, while salaries at best on average at 3-4%. This is all the product of short sightedness and greed. The bill has come due and a large percentage has been added for gratuity. The Devil will have his kilogram of flesh from a people who have forsaken Christ for pride, vanity and greed.
So what is being contemplated by the American Congress?
Standing before Congress and leading the Marxist charge is Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York. Her proposals range from a “mild” call to remove the 10% tax break from the 401K investments, to a harsher call to confiscate 10% of the monies in the accounts (one time of course, which is what all Marxists say, even when they repeat their acts) to a “harsh” call to simply close out all the accounts and bring all the monies under the Social Security system’s (mis)management. The same Social Security system that has mismanaged America’s retirement for 70 years into a $30 TRILLION hole, counting debts & promises through the year 2050. Of course no doubt that once all that money is brought down under the control of politicians, the urge to spend will be like that of an alcoholic locked in a liquor store…impossible to resist.
But what does this mean for the broader world?
Well, at the mildest of proposals, this will put major breaks on the US stock market as investment slows and some gets pulled out in fear. As we move up the scale to total confiscation, expect a full run on the market. Of course the government of America will set some even more draconian standards on exporting wealth from the US. The stock market will more than likely lose a further 25-30% of its valuation and many more American companies will collapse. The United States government will likewise send the final signals of a failed economy and the likelihood of default on its impossibly gigantic and accelerating debt that will grow exponentially.
Watch this one carefully as the Marxist run, US government, moves through the process of hearings to legislature to action and be prepared to quickly remove all monies out of US debts, before you are left ruined worse than even the US mortgage debt failure ruined you. Either that or do not get mad as Americans laugh at you as a fool, even as they themselves are begging on the streets and selling pencils.
Wow, I wish I could write like that.
Pravda scolding Congress for too much Marxism.
Now I’ve seen everything.
Pravda???
Shocking.
I didn’t read the whole thing but what did read range mostly true.
What the hell was that?
Good gracious. Pravda is lecturing us on not being a Christian nation, aborting our children, and following the path of Marxist criminals who will wreck what is left of our country.
Where’s Rod Serling?
bin Biden did say it was patriotic to pay taxes. Hussein says we "need to pay for the war" not borrow for it.
I have heard more than one Democrat congressman refer to pension plans that accumulate interest and dividends untaxed as, "costing the government billions." "Mortgage deductions" costing billions in "tax subsidies".
Then Hussein surrogates say the only people invested in IRAs, 401Ks, Roths, EDU funds, are the rich, they should not be tax exempt.
That great S American socialist example, Argentina, just told all pension funds to liquidate foreign holdings and invest domestically. This in preperation to nationalize all pension funds to its government allocated system.
yitbos
I guess I’ll have to stop insulting the American MSM by calling them Pravda now. Guess I should just go ahead and call them the American MSM to instult them.
pass the apples
A jobless man sells apples on the streets of New York City in 1932. More than 15 million people, nearly one quarter of the United States work force, were unemployed by 1932, three years after the stock market crash that signaled the beginning of the Great Depression.
Russians abort 13 babies for every 10 live births.
Wow, I never thought I’d agree with anything written in Pravda.
This ought to be sent to all the MSM idiots who are denying the possibility of anything like this happening under 0bama.
Average SS payment is about $1100. Just who are these “most people”?
That's like Ted Kennedy telling you you've had too much to drink and Bill Clinton telling you to stop being such a horn dog.
I think there was some miscalculation in the exchange rate...
On a side note, the average payment that Russian elderly get in their retirement system is about $25 per month. Thats about what ours will be as we factor in the coming inflation...
Just figure if Met Life or Prudential went belly up what pressure that would put on the system. Billions on top of billions would be called in and the last resort is that TARP bailout. Ain't gonna be enough money if we don't pull out of this quickly.
But as usual they are going to demand that they have it both ways... Their hypocrisy knows no bounds...
I expected some troubled times ahead, now I expect far worse times. Stupidity squared...
Where’s Rod Serling?
And they have a 13% income tax rate. Makes you want to puke doesn't it????
Putin and his KGB buddies are laughing their a$$es off at us.
He’s probably not getting rich from forex, I would guess.
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