From Jim Sinclair's MineSet:
The Greatest Destabilization Is Yet To Come
Posted: Feb 02 2009
By: Jim Sinclair
Post Edited: February 2, 2009 at 10:36 pm
Filed under: General Editorial
Retirement and Benefits Programs
Of all the problems delivered to the doorstep of middle America by OTC derivative manufacturers and distributors, nothing will exceed the bankruptcy of retirement and benefit programs for the American worker.
This financial crisis is defined as the inability of the funds to meet their requirements on an increasing basis year to year.
More and more people who make and deliver real goods are getting letters from their paid-in retirement fund informing them of the curtailment of benefits that have up to now been taken for granted due to what the fund calls “Critical Status.”
It is assumed in presentations by the funds that this "Critical Status" will be overcame. It will NOT because SIVs are not coming back for reasons I have already outlined to you in detail. Simply said, the OTC derivative cannot recover simply because they have been fraudulent since their inception.
This is not because things are flush but rather there is a shortage of cash and over the top inventory of OTC derivative products that cannot be valued.
Social unrest will not be avoided as there is no practical solution to the core problem that is yet even to be admitted to, let alone faced. The problem is that all OTC derivatives have been frauds since the beginning of their creation.
I have in my hand a letter from the New England & Industry Pension Fund, one of the largest union pension funds in the business.
Hidden in the flowery language and on the back page it says:
1. Elimination of early retirement options, i.e., the right to receive a Pension prior to the age of 64 including:
a. Early Retirement Pensions.
b. Thirty Year Full Service Pensions.
c. Minimum thirty Year (75%) service Programs
d. Special Service Pension prior to the age 64.
e. All partial pensions to the extent any such pension is tied to one or more of the Adjustable Benefits listed above.
2. Elimination of all Disability Pensions prior to Age 64
3. Elimination of all Benefit Payments prior to the age 64.
a. 120 Certain Payment Options
b. Christmas Benefit
4. Elimination of Death Benefits including
a. Single Payment Death Benefit.
b. Thirty-Six Month Annuity for Unmarried Participants.
All of this is emplaced as the fund is in “Critical Status.”
***
97% of the American people have little or no idea what is coming.
Worse yet, they have even less of a clue on what to do when it happens.
Worst of all, Hopey-Changey and his band of Looters actually want the Collapse to happen, so that they can then implement their totalitarian central planning fantasies "to protect the people."
Brace for impact.
Audentes fortuna juvat.
"Worst of all, Hopey-Changey and his band of Looters actually want the Collapse to happen, so that they can then implement their totalitarian central planning fantasies "to protect the people.""
ReplyDeleteMaybe ... but in such circumstances, where things are in flux enough that such radical "change" is possible, OTHER radical change is possible, driven by us - it opens a window where rapid change can happen for good or evil. We can take advantage of it as much as they can. Keep that in mind.
They might get change all right, but not the kind they want. When you open doors into a maelstrom, you might not be able to control the outcome.
If we are going to have to fight regardless, because of the Obamabots' (and sell out GOP) plan to disarm us, we may as well capitalize on the anger over the economy, the bailout for the bankers, and the restlessness and "disturbance in the force" that is to come.
Be ready to capitalize.
I've already closed one of my 401(k) plans from a former employer. I'd rather take the tax hit now, and have the cash "under my mattress" for when I need it. I have a feeling that The One and his minions may be coming after all of us who have a 401(k) so they can grab the funds and use them to try and prop up what's left of Social Security...
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