Social Security Funds, State Pension Funds, and Money Market Funds account for more than $7 trillion in people’s savings. These three gigantic pools of citizen’s capital and retirement savings are all currently under attack.
Either due to a growing lack of funding, recent commitments to help prop up the failed banking system, or new introduced regulations to freeze accounts in case of future bank runs… these three funds have had major news stories with far reaching repercussions:
New York Times – 3/24/2010 Social Security to See Payout Exceed Pay-In This Year The bursting of the real estate bubble and the ensuing recession have hurt jobs, home prices and now Social Security. This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until 2016, according to the Congressional Budget Office. |
Bloomberg – 3/8/2010 Failed Banks May Get Pension-Fund Backing as FDIC Seeks Cash The Federal Deposit Insurance Corp. is trying to encourage public retirement funds that control more than $2 trillion to buy all or part of failed lenders, taking a more direct role in propping up the banking system, said people briefed on the matter. The FDIC shuttered 140 lenders last year and expects the tally may be higher in 2010. Regulators have avoided signing up private-equity firms as rescuers on concern that they might take too much risk. Pension funds, whose 100 largest members manage $2.4 trillion, could provide capital to acquire deposits and outstanding loans from collapsed banks, according to the people. “The FDIC is constantly looking at structures where we can get the greatest opportunity to tap into capital that we have not had the success reaching through previous disposition methods,” FDIC spokeswoman Michele Heller said in an e-mailed statement. “We welcome and work with all investors.” |
ZeroHedge – 1/27/2010 Suspending Money Redemptions is Now Legal; SEC Approves New Money Market Regulation in 4-1 Vote Money Market Funds now have the ability to suspend redemptions, courtesy of the SEC’s just passed 4-1 vote. This explains the negative rate on bills: at this point, should there be another meltdown, money market investors will not, repeat not, be able to withdraw their money purely on the whim of Mary Schapiro. As the SEC noted: “We understand that suspending redemptions may impose hardships on investors who rely on their ability to redeem shares.” Too bad investors’ hardships considerations ended up being completely irrelevant. |
THE BOTTOM LINE?
| Social Security | - According to the government’s own data, though it’s not broke yet – it’s gonna be soon. |
Physical Gold and Silver savings can’t go in the red as they have no counterparty or funding risks.
| State Pensions Funds | - it’s a high priority for the FDIC to tap into public state pension funds to further prop up our worsening banking system. |
Whether in your hand or in a 3rd party segregated vault, saving physical precious metals for you and those you love is the antithesis to further propping up this bankrupt banking system.
| Money Market Funds | - newly passed SEC reforms help to ensure that in the next leg of the economic crisis you may not have the ability to withdraw funds from your account regardless of their purported safety. |
The safety and liquidity of precious metals is unparalleled. Don’t allow yourself to be on the end of frozen funds.
Physical Gold and Silver is our answer to the frozen red siphon that threatens further devaluation of these savings funds that in many cases are proving to be insolvent.
Isn’t it time to ensure that your savings answer to you and to you alone?
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