Russia Confiscates Private Retirement Savings
Earlier this month, the Russian government seized its citizens’ pension contributions. Normally, 6 percent of Russians’ salaries is invested in financial markets, earmarked for their retirement. This year that $8 billion in contributions will finance Russian spending instead. Russia is not the first country to confiscate pension assets to pay its bills, and it probably won’t be the last.
For governments facing financial pressure, billions of dollars of pension assets proved too tempting to resist. In 2008, Argentina “nationalized” $30 billion of pension assets. Since the European debt crisis, Hungary, Poland, Portugal, and Bulgaria, to varying degrees, have done the same.
Critics of personal pension accounts usually worry that most people can’t cope with the risks involved in investing in financial markets. But if you live in a country with a profligate government and a loose definition of property rights, losing your account to the government is potentially a bigger risk.
Editor's Note: The article goes on to dismiss the notion that this could ever happen in the US and those that believe otherwise are “conspiracy theorists.” The simple fact that the mainstream media is trying to lull people into a false sense of security in contradiction to all the facts is curious. The US government, like all bankrupt governments, clearly has their eyes on the juicy, low-hanging fruit that is private retirement savings. See this article and this one for more on this critically important topic and what you can do to protect yourself.