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VAPORIZED: Detroit Obliterates Retirement Funds: 80% Cuts to Pensioners: “This Is Going to Affect Everyone”

VAPORIZED: Detroit Obliterates Retirement Funds: 80% Cuts to Pensioners: “This Is Going to Affect Everyone”

Mac Slavo
December 3rd, 2013
SHTFplan.com

Though a decade ago civil servants and union members would never have believed it could happen, the stark reality of the situation came to pass this morning.

We now know the answer to the question: What happens when a government makes promises it can’t keep and borrows so much money it can never be repaid?

This morning a judge overseeing the City of Detroit’s fiscal sustainability ruled that the City can be afforded bankruptcy protection, meaning that all 100,000 of its creditors now stand to lose a significant portion of monies owed to them.

The most notable victims are the tens of thousands of retirees living off of pensions – many of whom will see an 80% obliteration of the retirement funds they believed they’d receive until they died.

Read more: http://www.shtfplan.com/headline-news/vaporized-detroit-obli...



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LittleWing's picture

Interesting Tidbit on US Pension Funds

US Pension Funds to Israel - Guaranteed by US Govt ( Sept 1993)

It is only one part of an effort by the government of Israel's lobby in the United States to move some of the ever-increasing aid to Israel out of the federal budget, where it is becoming a real issue, into investments in Israel bonds by the huge state government pension funds. By turning such funds, from many different U.S. states and cities, into a major source of aid to Israel, its U. S. Lobby hopes to defuse a potentially explosive issue. ...

Whether or not this effort will succeed will depend on the amount the American public learns about the purchase of Israeli bonds by the widely scattered pension funds. Already, some 12 states have authorized this new means of financing Israeli deficits, which are mounting and are no more likely to be repaid than Israel's direct debts to the U.S. government. (Israel has never repaid a loan from the U.S. government. All, eventually, have been forgiven by the U.S. Congress.)

Since in the end these bonds issued by Israel will be the responsibility of the American government if Israel is unable to repay them, it makes little difference whether the aid to Israel is voted by Congress or authorized by the state legislatures, which control state pension funds. Either way, U.S. taxpayers ultimately will foot the bill. ...

No other country has such access to U.S. pension funds, and Israel is hardly the best risk. Japanese, German or other bonds from industrialized nations have had far better in vestment ratings. But the key to Israeli access to the funds has been that these formerly extremely risky Israeli bonds now are guaranteed by the U.S. government. No U.S. state or municipal bonds carry such U.S. government guarantees, of course.
http://www.wrmea.org/wrmea-archives/150-washington-report-ar...

March 2013 Article: A Small Country Big Trouble, Not Cyprus, Israel

The latest advertising by Israeli Development Corporation (IDC), an organization set up to market Israeli bonds, boasts that “U.S. 2012 Israel bond sales set a new record, with total investments exceeding $816 million. The sales represented a 29 percent increase over 2011. Worldwide sales also rose, surpassing $1.2 billion.” It appears from this announcement that about 2/3 of Israel’s bond sales are in the United States. This is in addition to the $3.0 billion in the foreign aid we are told the U.S. federal government gives to Israel every year.

The IDC also claims: “Ohio Treasurer Josh Mandel completed the single largest Israel bond investment by a state — a $42 million purchase that increased the total amount of Israel bonds in the Ohio Treasury’s portfolio to over $80 million.” Do Ohioans know this? IDC claims that some 80 cities and state governments and employee pension plans have now invested their taxpayers’ money in Israeli bonds

http://charlesecarlson.com/tag/israel-bonds/

If Wars Can Be Started by Lies, They Can Be Stopped By Truth.

I wonder how...

I wonder how this will affect the democrat voter base in the next elections?

RickStone

What did they expect.

City pensions are nothing more than elaborate ponzi schemes.
grant

I don't feel sorry for them

I don't feel sorry for them at all.

The Federalist Workers will have a hard time...

without their slaves money. Good for Detroit people.

Good Opportunity

...to make it a free zone. Sign over (gov.)real estate to retirees. Do something out of the box.

God forgives always. Man forgives sometimes. But Nature never forgives.

detroit now

I think this is a good idea.

I think this is a good idea. Federal,state, and local governments control enormous swaths of land. Detroit has huge tracts that are basically decaying. Why not use it to pay the retirees, so they can possibly do something with it? Even if that means selling it.

The human race divides politically into those who want people to be controlled and those who have no such desire. - Heinlein

I Wonder

...how much of a hit the Mayor & certain others are going to take. HA

God forgives always. Man forgives sometimes. But Nature never forgives.

why should the retirees only get the land?

Put it on the market and they can bid on it like everyone else. At the very least they can have a draw for it with like a 50 buck ticket or something like that.

Has not the taxpayer done enough for the retirees? Did the public retirees ever not accept a pay raise? Unfortunately, they will have to be a good example for the rest of local govs and others.

donvino

You have a valid point. I

You have a valid point. I would love to see a new land rush started.

I was thinking of solutions that might make a difference in this particular case.

The various levels of government have locked up vast resources in our name. The federal government controls roughly a third of the land mass in this country, particularly in the West.

My thought was that they could release land in payment for retirement funds they over-promised and could not pay. It would possibly start a land rush in Detroit, and might set precedence for the bigger problem when social security reaches the same point.

The human race divides politically into those who want people to be controlled and those who have no such desire. - Heinlein

Justice

Has been served imo and nature has taken its course along with economic laws.

Same thing as in the USSR.

The parasite has killed the host and now must be punished for it.

donvino

This will happen everywhere eventually. Because math proves this

idea of paying people NOT TO BE PRODUCTIVE, is impossible to work out.

The money ALWAYS and can ONLY come from production. Because of inflation, this means the pressure on future production will always be upward, while at the same time, driving real purchasing power downward for both pensioners and productive workers. This results in even more pressure to drop pensions entirely.

This is not shocking and no surprise to me. My only surprise is it is only 80% and it's only happening in Detroit at the moment.

Detroit reminds me of Wimpy.

I'll gladly pay you Tuesday for a hamburger today.

The city ate the employees lunch, and Tuesday never comes.

Free includes debt-free!

This is the real danger of

This is the real danger of deficit spending. All those retirees are up shit creek now because they are naturally the last priority.

The human race divides politically into those who want people to be controlled and those who have no such desire. - Heinlein

Sorry Detroit, No Sympathy For You Today

BOOM!! KaBoom!

Gotta go with you there

A group of us made an ernest effort to research Detroit as a possible lowbrow libertarian Mecca. The more we learned the less we felt like doing them this favor.

They'll sell you a house on some land...then you can rebuild it their way and open your door to hoards of pencil necks and then we heard they had "enforcement squads" shaking down what remained of their local business with the sole purpose of enforcing every single code and rule and ordinance....

for the single purpose of shaking them down for money and in many cases forcing them to close....

My attitude went from optimistic to LET THEM DIE ON THE VINE AND LET THEM TWIST IN THE WIND.

I'll enjoy watching Detroit sculpt it's own funeral in it's own way from afar. It's really quite artistic in a morbidly baroque fashion.

Be brave, be brave, the Myan pilot needs no aeroplane.

GOBMT CHEESE PROGRAM

Too bad for the cheese eaters!!!
The cheese in a mouse trap is "always free"

NOSHEEPLE

Great news!

Should have never happened in the first place. Govt employees/civil servants and union members should NOT have special privileges. Most of those jobs probably weren't even necessary.
I was especially peeved reading about Kammer who 'retired' at the ripe old age of 41!! with a 'disability' (did he do in his back sitting in a sinecure?) who's been scamming the Detroit taxpayers for 36 years while sitting pretty in Florida! The Detroit govt should have at least stipulated in every contract that if you leave Detroit you lose your pension. At least then those 'retirees' would be putting money back into Detroit by paying property taxes and supporting Detroit's economy.
But honestly, it should have never been done in the first place. That city was doomed once the unions took over.

If Tyranny and Oppression come to this land, it will be in the guise of fighting a foreign enemy.
James Madison

Good

The few remaining taxpayers of Detroit should not be forced to pay for the outrageous stupidity of past governments, in relation to pensions and other debts. Default on all debts and run the city on a cash basis, legally prohibit the city from assuming any new debts of any kind ever again. Eliminate all but basic law and order services, and cut taxes to the minimum necessary to finance those services. Eliminate all regulations, zoning, etc. Detroit could be the richest city in the country in a few years time.

Or keep the existing workers' paradise model of government. Maybe they can lease out all that empty space for nuclear waste storage to make the pension payments. :-/

Your call citizens

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

I don't know what to say other than I expected this.

.

I think ALL "PUBLIC" Pension funds should go...

Why should private people, through taxation, be required to pay public workers pensions???

If taxpayers are NOT getting services from the people who were hired for Govt positions, why should taxpayers be responsible to continue to pay for their pensions long after they left their jobs. Why should retirement funding be any sort of a responsibility of the actual govt to it's employees???

If public sector workers want to setup their own private pensions, then that's fine. But don't ask the public taxpayer to continue to pay you when you leave your govt job, the public is NOT responsible for the retirement of public workers. Just like public workers are NOT responsible for the retirement of private workers!

Publicly funded pensions are one of the reasons so many people seek employment in the government sector. It's really non sense.

Govt workers should be as much responsible for themselves after they leave their govt jobs just as a private sector worker is responsible for him/her self after leaving a private sector job.

This is just another consequence of the unsustainability of these publicly funded pensions in the first place. THEY SHOULD HAVE NEVER BEEN BROKERED IN THE FIRST PLACE AS A BENEFIT OF PUBLIC GOVT WORKER EMPLOYMENT. Taxpayers SHOULD NOT HAVE MONEY TAKEN from them to fund workers who NO LONGER provide services to the town on behalf of the taxpayers!

Love Liberty, be Vigilant

"Now the Lord is that Spirit: and where the Spirit of the Lord is, there is liberty" (2 Corinthians 3:17)

Faith in God will prevail all things!

exactly.

exactly.

Private pensioin funds should

Private pensioin funds should go as well. They only exist because unions demand firms have them and fight against 401k's. 401k's, IRA's and other private retirement accounts where the individual owns the assets are much better than a pension where the hiring firm owns it. All it takes is a bankrupsy for a person to lose everything. Only if they own it themselves do they control it.

the only retirement that

the only retirement that people should have now is gold and silver bars and coins stacking in a safe in their own homes. 401K'S, IRA's etc. are all going to be confiscated by the federal government.

"DETRIOT, The Movie", Coming To A City Near You

Can you hear the giant SUCKING sound and crash..

BOOM!!