Poland Confiscates Half Of Private Pension Funds To “Cut” Sovereign Debt Load - → zerohedge.com/news/2013-09-0 … -debt-load
Isn’t this exactly what Ireland did to all the university and other (previously separate) public sector pension funds?
say goodbye to your deposits and pensions! its only a matter of time before this is implemented
Someone is already working on pressing the button in Ireland,
according to Zerohedge…
Nice use of the phrase “on Tap” for flow of funds (or alcohol as is more common in this place).
Tusk is about as popular as a pork chop in a synagogue right now. Nice job awaits him in the EU apparently anyway. Good to know who your paymasters are.
If the state doesnt steal your pension, then the pension fund manager will. Or the broker. Or any of the other middlemen who have the power to dip into it.
The moral of the story is - You only truly own whats in your possession.
You got it all wrong, that is basically just prime minister improving taking care of their citizens. Let me get couple of key points from his speech:
a) Goverment focused on 100% of protection of future pensioner
b) Converting all bond held by funds is just “conversion of bond, currently in control of funds, into future liabilitilty, which would be guaranteed on bill ( law passed by paralment) level.”
c) Instead of using those money for indebting (not sure what is right word) of country, they could be used by govemerment to improve economy. If old ways were followed this fund would create debt burden and prevent Poland from growth, now they will work for better future.
I tried to be as accurate as possible, if you do not get it probably you are not smart enough to be prime minister. Learn some economy!
Yes, he really said stuff like that.
I think his party will get reelected.
The reporting is vague, but it seems that only Polish government bonds held by Polish pension funds are affected.
That would make this in effect an internal default.
I guess it’s somewhat analogous to debasing your currency by printing money.
I can’t see how it is going to help with the debt to GDP. Eurostat will surely count it as a government obligation still?
I think it helps because the bonds sit there as assets, lowering the debt/gpd ratio and the future pension liabilities, like every government does, are ignored.
Polish constitution prevents certain debt to GDP levels, which as PM said is very inflexible and useless rule as obviously investing more now will make country really rich in future.
Anyway, if debt is over 50% but less than 55% then deficit is not allowed to grow in next budget. (This was suspended 2 months ago as it is anti-growth)
If 55% or more, but less than 60%, then deficit is no longer allowed, public sector raises are not allowed, some institutions like Supreme Court or President’s Office are not allowed to have high budget, government is not allowed to give loans, similar restrictions for local councils.
If debt goes to 60% or more then government has month to show plan to fix it up and councils must only spend as much as they earn.
Wow. What a great idea!
Didn’t Ireland have a constitutional vote about something similar recently.
What us not such a great idea is thinking a bigger debt burden will make you rich…especially when we know the money will be misused and misallocated as it filters down through the corrupt Polish beaurocracy.
Indeed, a blueprint for pro-cyclical success!
I used to think it was accounting exercise as governments tweaked on what is debt and what is not to make sure they end up 0.01% below limit, but it seems that it worked as our pensions are confiscated by people we elected, rather than this “EU made me do it for the bailout” stuff going on in other troubled countries. Since Q1 2007 (oldest data I found with quick google search) all quarters were positive in GDP growth YoY and only one negative QoQ, so they can’t even claim bad economy.
I forgot disclaimer, I’m one of those whose funds are going to be secured so not really that positive about change.
So no to bitcoins so?