The European state adventure in a bureaucratic society has taken a turn for the worse. You only have to judge how they view the retirement savings of their senior citizens to know the true state of the domestic state economy. A case in point is Europe, and the public robbery of private citizens retirement funds to pay for the deficits generated by the bureaucracy of the nation-state. The CS Monitor has an interesting article on the topic today.
The most striking example is Hungary, where last month the government made the citizens an offer they could not refuse. They could either remit their individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it). In this extortionate way, the government wants to gain control over $14bn of individual retirement savings.
The Hungary example is not surprising, as its government has told the EU and the IMF to go get stuffed in economic terms. The country has to internally fund itself during the crisis now. I wrote an article on the topic last summer for Money Morning.
What I found striking in the CSM piece was the number of attacks on retirement savings in Europe in the last few months. Hungary was just the most obvious example. Bulgaria, Poland & France are also attempting to find liquidity where ever it is, even if it is supposed to be for the future.
European state treasury’s are now eating tomorrows seed crops, for today’s bread. This will not end well. You can expect this idea to be tried by US state’s in the near future as the American economy no longer funds the size of the government that controls it.