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European nations start to confiscate private pensions

The Adam Smith Institute reports that European nations have started to sieze private pension assets: Hungary, Poland, Ireland, and Bulgaria have all joined the party, although by slightly different means. It is an example of financial oppression of citizens by governments. 

This is a preview of coming events in the US. One suspects that given the massive underfunding of many state & municipal pensions and the pending insolvency financial stress of various municipalities & states, politicians will give it a go. 

Morgan Stanley put a bold warning in the public domain and to their credit used the exact words, "financial oppression" which we noted in our posting The Last Chance Saloon of Sept. 1, 2010. They were spot on. The trend will accelerate in Europe where portable assets & black markets will soon trade at an even higher premium. 

The US political class will face a hard choice: non-trivial real reductions in transfer payments and government spending or take a shot at this kind of oppression. 

These economic wheels grind slowly, but very finely. Watch your exposure to the estate and effective marginal tax rates at the state & national levels.


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