Not Just Blowing Smoke

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No, I’m Not Just Blowing Smoke

With my recent writings warning of loss of control over private pensions, IRA, 401K’s, etc. many have said that I’m just an alarmist blowing a lot of smoke and fear. Indeed, I’ve even been called the “sower of the seeds of doubt”. However, it is becoming increasingly obvious that governments and their central banks are quickly running out of options. To date many of the central banks are printing excess money in an attempt to keep the wolf from the door. However, this is not just a finger in a cracking dike tactic, but it only kicks the can farther down the road …sooner or later it will have to be dealt with. As the financial situation becomes clear to many, the governments are seeking desperate measures to keep the whole shootin’ match from collapsing. More and more governments are beginning to glom on to the hard won pensions of the citizens of their respective counties and even renege on promises of SSI-types of state retirement accounts, a large portion of which was funded by the employees themselves.

Wheat & TaresThis confiscation is being done in many ways; in some cases bank passbooks are now regarded not as the possession of the depositor evidencing their deposits, but as an investment receipt showing their investor status in the bank; in some cases the government also uses bail-ins which means in the event of failure all depositors must relinquish some or all of their deposits to assure that the bank does not fail, (a variation of the too-big-to-fail play) effectively passing the loss to the depositors. In the case of retirement accounts governments are using bail-ins to keep asset funds and investment houses going. A favorite is to mandate removal of funds from the ordinary investment markets and place them in government vehicles like government bonds and T-Bill equivalents. To date, nothing like that has happened here in the USA, but, as previously reported in CRS, plans are on the back burner for such actions should they be necessary.

Meantime, we’ve now seen moves by a relatively advanced European government, Poland, to implement actions previously limited to the so-called PIGS nations, that is, Portugal, Ireland, Greece, and Spain, among others. I include the article from Reuters, not to be a fear monger, but to warn the readership of what is likely in store should the dike burst, most especially if we take on another war this time with Syria. (see the following YouTube video for more insight into this: )

Aside: [as a student of history I’ve observed time and time again that when government options become limited they resort to war. This is done mainly for two reasons; primarily it is to distract the citizenry from the troubles at home, and also in a vain attempt to stimulate the economy.]

Poland reduces public debt through pension funds overhaul

Richard of Danbury, D.S.G.


About Catholic Rural Solutions

This group is for the practical application of Catholic Distributist teachings as promoted by Pope St. Pius X, Belloc, Chesterton, Maurin and others in the 20th century. This group is also a respite for traditional Catholics who adhere to the Tridentine Rite of the Holy Sacrifice of the Mass and who share a concern for small independent Catholic communities throughout the world. These communities while primarily small holding farmers, craftsmen and tradesman all espouse an integrated life based on Catholic Social Justice and the Sacred Magisterium of the Church. Through this we intend to inject the Distributist economic principles into the greater society. Please fell free to share your experiences in this vein. Flaming, proselytizing and persecution WILL NOT BE TOLERATED.
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