Like Spain, The Fed & Treasury Will Pull Out Nuclear Option & Raid Private Pension Funds

The greatest issue facing us in the short pull is the very real potential of our Federal government having a failed bond auction. They may have to buy up large amounts of existing Federal debt when rates are climbing. If the Federal deficit spending continues upward at $1.7 to $2.0 trillion a year, we chance losing another rating notch or two. The equity markets and pension funds, both national and foreign, are mandated to accept only AAA bonds. They will not only be unable to buy our debt they may ultimately be forced to divest as the near-junk bond status of our debt violates their investment charter.

If this happens the Fed and Treasury are very likely to pull out the nuclear option. They will raid our private pension funds, just like Spain. They may even take foreign pensions invested in domestic funds. That’s also on the table.

This $6-8 trillion pool of private IRAs and 401Ks is the only large source of funds left outside the MMAs multi trillion dollar pools. The removal of pension funds is now established policy in Europe. This Spanish ‘theft’ of funds, done with little to no chance of repayment, is not going unnoticed in the top levels of our government and the Federal Reserve Bank. These people know that sooner than later there will be a failed bond auction or rating drop that forces their hand- and that hand will move into the pockets of the American tax payer and their private pensions. It’s big money; it’s the only money and these people know it. Call it the Failsafe option if you want. Bernanke knows this well. The vast majority of the American population is completely unaware.

Click here for more on the Fed’s Nuclear Option:

3 comments on “Like Spain, The Fed & Treasury Will Pull Out Nuclear Option & Raid Private Pension Funds
  1. Jayme says:

    Huh. Even if they pull it out, $6-$8 trillion wont keep the system working very long.

    I assume this also includes Roth IRA’s? It might be a good time to withdraw the Roth IRA out, if so.

  2. Make no mistake about this! a great many academics are aware of the dangers inherent in this kind of catastrophic meltdown. P2P (peer to peer) currency is now at an advanced stage of research and development. All folk will need to adopt this P2P currency is a mobile dog & bone.
    OK so just now the grocery store and supermarkets don’t accept bitcoins and similar stuff. That situation could change very rapidly, if these fuckwits push their luck too far! They will discover to their cost, that their worthless fiat currency has no purchasing power whatsovever! The worthless “Billion Yugaslavian Dinar Note” moment will have arrived. Gold & Silver, as ever, will retain their value, but as most of us know, there is simply not enough physical metal available to conduct essential business as needed. We are talking survival of the human species here! this is NOT some hypotheticall remote dilemma! We can survive without Banksters, we can survive without fancy bits of printed paper, but we can’t survive without food and shelter and essential supplies. Trade must continue, with or without these fuckwit bankers!
    (No pejorative aspersions towards ‘sane bankers’, who provide an essential service, is intended!)

  3. Skiddypants says:

    So they raid your pension account. They will issue your account an IOU. When you retire, your fund will have lost 90% .

    Stack the smack……..

    Cheers

Access The Max Keiser Podcast
Weekly Downloads, live Q & A Session and exclusive video posts from Max and Stacy

Subscribe Learn More
Buy Gold Online
Buy Gold Online
Watch the latest Keiser Reports:

Watch our Google Hangouts: