Greece Passes Law To Plunder Pension Funds

Tyler Durden's picture

Having previously hinted that they might 'dip' into public pensions funds for some short-term cash to payback The IMF, and then confirming that the plan is to repo that cash from pension cash reserves (raising concerns about how they will unwind the repo - i.e. pay it back); the Greek government finally signed the bill today that enables them to plunder the Greek people's pension funds (for their own good).The massive irony of this bill is the bill enables greek deposits to be fully invested in Greek sovereign bonds... which Tsipras and Varoufakis both admitted today is "unsustainable" and "will never be repaid."

  • *GREEK GOVT SUBMITS BILL, ALLOWING USE OF PENSION FUND RESERVES

As Bloomberg reports,

Cash reserves of pension funds and other public entities kept in Bank of Greece deposit accounts can be fully invested in Greek sovereign notes, according to amendment to be submitted in parliament, country’s finance ministry says in e-mailed statement.

 

Cash reserves can be used for repos, reverse repos, buy and sell-back, sell and buy-back transactions

 

Pension funds, public entities will be able to claim damages from Greek state in case of overdue repayment, partial repayment

 

Pension funds are not obliged to transfer their reserves to the Bank of Greece, according to finance ministry statement

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We wonder how the increasingly disenfranchised Greeks will react when they find their savings (whatever there is left) are now being directly plundered to fund the nation's transfer payments (via The IMF) to Ukraine.

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Greece remains second only to Ukraine for default risk....

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NoDebt's picture

George Carlin.  Visionary.

EscapeKey's picture

Eventually you run out of other people's money^H^H^H^H^H pension assets.

InjectTheVenom's picture

>>>>  coming soon to USSA !!

>>>>  phew...good thing this could never happen here in USA !

El Vaquero's picture

Coming to a country near you soon!

 

And it'll probably be a bit more insidious here.  "To protect pensioners from those wicked Wall Street Bankers, we are mandating that a minimum of 70% of retirement accounts be in safe US Treasury Securities.  It's for your own good, and we'll match the CPI!"

Headbanger's picture

"Hello Vlad??"

"C'mon down!"

metastar's picture

Why do you think they want the population here disarmed?

Could you imaging retired armed vets or police having their pensions taken?

KnuckleDragger-X's picture

We had to destroy the village in order to save it.......

mkkby's picture

Ok, I downvoted coming to USSA soon.  You have to be seriously dumb to believe that.  Obviously the plan is to print and "pay" off the debt with inflation.  That's right, bail ins are only for non owners of the reserve currency.

Wait for japan, spain, italy and the uk to "go Greece".  Then you can start worrying about a reserve currency reboot.

N2OJoe's picture

You have to be seriously dumb to believe that it's NOT coming to USSA. Do you really think they would just leave such a juicy, defenseless source of funds sitting there in the hands of the great unwashed? It may not be today, it may not be in 5yrs, but it IS COMING sometime before I die (of natural causes) anyway.

Sure they'll print. When that stops working they'll seize anything they can get their tentacles on. When that stops working they'll default. Same as it ever was.

I'm still glad I paid the penalty and cashed out my IRA. I now hold, and therefore own it.

PartysOver's picture

Well there goes the damn neighborhood. 

Maybe we just just go ahead on convert 100% of assets to touchy feely PM's and high tail it to a 2nd tier country, maybe Central America (cause their freeloaders are heading north which means that most of those still behind want to do it the right way) or the South Pacific Islands (but they are not to friendly on property rights. 

Oh, what to do?

Soul Glow's picture

Voting doesn't work so there's that.

astoriajoe's picture

Most of those countries enforce their immigration laws.

max2205's picture

Don't laugh the Tres has already 'borrowed' against the Soc Sec trust funds. This has been going on here for at least 40 years and I am sure the total exceeds whatever the funding requirements by X 2.

I am sure they will return the money in 2075 dollars.

We are fucked!

nuubee's picture

I was explicitly told back when I was just a twinkle in my dad's eye, that it was wholly my responsibility to vote against raiding social security funds for other political things. In the meantime, he was going to support more social spending because he felt it was necessary for his survival. Unfortunately I really had a damn hard time getting to the poll those years. I guess you live and learn, right?

I, and many others of my generation, of course can't afford to procreate, so things just work themselves out, obviously.

SmittyinLA's picture

in the USA you have to fund pension funds in order to loot them, most US funds are already appropriated by the state and buying up FNM bonds, the US equivalent of Greek Bonds

 

 

orez65's picture

" coming soon to USSA"

Coming soon??

Are you having a Rip Van Winkle experience?

Our so called "Social Security Trust Fund" with some $2.6 TRILLION has been totally robbed by the Federal Government.

Time to wake the f.ck up!!

Burt Gummer's picture

Except his vision was of what would happen to Americans. It's coming, don't worry, they'll get it, they'll get all of it!

https://www.youtube.com/watch?v=gzwyZI_DKjM

midtowng's picture

They are using the Argentina method.

HardAssets's picture

So, - guess the untucked shirt, no tie, and motorcycle was just another act ?

Who woulda thunk it - he got so much media coverage. (sarc)

Blythes Master's picture

BFD.

Just you wait until they start doing this to union goons here in the USA

Oy vay!

oddjob's picture

who would you rob first, teachers or teamsters?

El Vaquero's picture

Teachers have already been robbed in my state.  Bill Richardson let some Wall Street cronies manage the teachers retirement fund, and it was plundered around the time of thee last financial crisis.

oddjob's picture

Dammit, it was a trick question...you are correct, the teachers pension money has already been spent on coke, hookers and the Hamptons. Have fun with the teamsters!

El Vaquero's picture

Unions don't like it when their threats are not only thrown back at them, but backed up.  The Teamsters will fold if the police state is unleashed upon them.

cornfritter's picture

In many locations (possibly all?) they have no choice - the contribution is mandatory.  And it's gone ...

Puncher75's picture
  1. Who do the Philly Union thugs march on when they realize their pensions are gone?  The same Democrat career politicians they voted, stumped, and cheated for over the last 60 years??  Cry me a river.
HardAssets's picture

'Teachers' have done a helluva lot more harm to the country (especially over the last 60 years) than Teamsters.

At least when a package is delivered off a truck, it doesn't arrive dumber than it was when it left.

rejected's picture

Just pass a law to make thievery legal.

Now, roll over and let me pat your belly....

ted41776's picture

and they said elections don't matter!!! oh, wait...

NoDebt's picture

The Greeks really did a great job electing politicians who will look out for them this time around, didn't they?  Oh well, there's always Golden Dawn to try next.

ted41776's picture

this time, it's different!

Harbanger's picture

It's a leftist Gov now, No Moar Protests.  Although it would be fun to watch the new populist gov use the state police force to beat them down.

thamnosma's picture

Similar to installing Obama and his merry band of "progressives".  Wars haven't stopped but Code Pink is still yelling at Dick Cheney.  How many protests against actions in Libya, Syria, etc.  Where are all those Berliner activists?

EmmittFitzhume's picture

Si vis pacem, para bellum

czarangelus's picture

Waiting for an Athens Spring.

Harbanger's picture

But they were just elected into power by popular vote?  I'm still waiting for the war protests to come back to the US, Obama put an end to all that.

thamnosma's picture

No better sheep than leftists.

Miss Expectations's picture

Troika Horse Jockies. Yanis is looking more and more sinister.

Flagit's picture

Just this once, lets put the finance people in charge of clothing design, and the clothing designers in charge of finance. Just to see what happens.

 

cornfritter's picture

Handsome devils!  Looks like Christine finally gave 'em the key to the executive wardrobe :-)

Miss Expectations's picture

Oh and this...Ben Stiller and Owen Wilson at the Valentino 2015 Paris fashion show (really):

https://www.youtube.com/watch?v=aRNwGimhok4

wmbz's picture

I believe everyone knew it would happen!

Scrapping the bottom of the barrel now. What's next? Sweep everyone that still has a bank account clean?

Oh I know...Raise taxes! 

bpj's picture

Next is sending soldiers to houses to search the sofa for change

Harbanger's picture

Good thing Greeks own lots of boats so they can lose the Barbaric relics.  Confiscation of all wealth is definitely in the cards.

thamnosma's picture

Don't forget they are soon going to start "cross checking triangular transactions" and hiring tourists to find coffee shop tax cheats.