Friday, December 12, 2014

So It Begins: Congress to Cut Pension Plans

Via LH


Congressional leaders hammer out deal to allow pension plans to cut retiree benefits ... The measure would alter 40 years of federal law and could affect millions of workers. A measure that would for the first time allow the benefits of current retirees to be severely cut is set to be attached to a massive spending bill, part of an effort to save some of the nation's most distressed pension plans. – Washington Post

Dominant Social Theme: It is necessary to cut people's benefits so that the state does not become insolvent.

Free-Market Analysis: This is huge news, and it's definitely launched in a big way on the mainstream media.

As of this writing, the situation is still in flux but from what we've read this legislation is taking place. Even if it doesn't happen this time, it's part of a trend that will reoccur.

Yes, it is a really – really – big story. People's savings and retirement benefits have been decimated by price and monetary inflation. They've lost their jobs and been forced out of their homes. And now the federal government is directly attacking pensions.

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9 comments:

  1. SunwolfNCDecember 12, 2014 at 5:22 PM

    Yep. Just about that time to completely pull every penny from the markets.
    My 401k can be physical PMs... no way in hell will I leave our money out for these thieves to legislate it away for the 'greater good'

    ReplyDelete
  2. Brock TownsendDecember 12, 2014 at 5:30 PM

    I hope they aren't considering military retirement, but wouldn't surprise me if they are.

    ReplyDelete
  3. AnonymousDecember 12, 2014 at 6:27 PM

    You can't have what is not there. The money to pay the pension promises that have been made, meaning anyone (including military) on a defined benefit plan, does not exist. Pensions are going to be cut whether congress legalizes it or not. 401Ks are a defined contribution plan so would not be affected by this kind of law, there has been talk on capital hill though of confiscating 401Ks and replacing them with an equivalent amount of US treasuries.

    David Martin

    ReplyDelete
    Replies
    1. Brock TownsendDecember 12, 2014 at 7:41 PM

      Or just keep printing greenbacks until it collapses.

      Delete
  4. AnonymousDecember 12, 2014 at 10:52 PM

    While Government pensions are the biggest culprit, they hit the taxpayer. Revolution cannot be far.

    ReplyDelete
  5. Pirate MorganDecember 13, 2014 at 11:13 AM

    Here comes the grey panthers

    ReplyDelete
  6. Pirate MorganDecember 13, 2014 at 1:43 PM

    We will find out what happens when people have nothing left to lose

    ReplyDelete

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