Christine Lagarde – The Most Dangerous Woman in the World – IMF Advocates Taking Pensions & Extending Maturities of Gov’t Debt to Prevent Redemption

image The new IMF proposal led with Christine Lagarde: Debt cuts for over-indebted states are to be performed more effectively in future by defaulting on retirement accounts held in life insurance, mutual funds and other types of pension schemes, or arbitrarily extending debt perpetually so you cannot redeem.

The new IMF paper describes in great detail exactly how to now allow the private sector, which has invested in government bonds, to be expropriated to pay for the national debts of the socialist governments.

The IMF working paper from December 2013 states boldly:

“The distinction between external debt and domestic debt can be quite important. Domestic debt issued in domestic currency typically offers a far wider range of partial default options than does foreign currency–denominated external debt. Financial repression has already been mentioned; governments can stuff debt into local pension funds and insurance companies, forcing them through regulation to accept far lower rates of return than they might otherwise demand.”

Already in October 2013, the International Monetary Fund (IMF), suggested the Euro Crisis should be handled by raising taxes.

The IMF lobbied for a property tax in Europe that should be imposed where there are no such taxes.

The IMF has advocated for a general “debt tax” in the amount of 10 percent for each household in the Eurozone, which also has only modest savings.

The money people have saved, the IMF maintains should be used for debt service by sheer force.

To reduce the enormous national debt, they maintain that government has the right to directly usurp the savings of citizens. Whether saving money, securities or real estate, about ten percent could be expropriated. This is the IMF view.

Because the government debt of the euro countries has increased a total of well over 90 percent of gross domestic product, they suggest that the people should sacrifice their savings for the benefit of the state.

Socialism is no longer to help the poor against the rich, but to help the government against the people. The definition has changed.

In January 2014, the Bundesbank joined the IMF project focusing on a “wealth tax”. In its monthly report they had announced:

“In the exceptional situation of an imminent state bankruptcy a one-time capital levy could but cheaper cut than the then still relevant options”

if higher taxes or drastic limitations of government spending did not meet, or could not be implemented.

In the latest June 2014 working paper of the IMF, they have set forth yet another scheme – extending maturity;

So you bought a 2 year note?
Well, the IMF possible solution would be to simply extend the maturity.
Your 2 year note now become 20 year bond.
They do not default, you just can never redeem.

Possible remedy. The preliminary ideas in this paper would introduce greater flexibility into the 2002 framework by providing the Fund with a broader range of potential policy responses in the context of sovereign debt distress, while addressing the concerns that motivated the 2002 framework.

Specifically, in circumstances where a member has lost market access and debt is considered sustainable, but not with high probability, the Fund would be able to provide exceptional access on the basis of a debt operation that involves an extension of maturities (normally without any reduction of principal or interest).

Such a “reprofiling” operation, coupled with the implementation of a credible adjustment program, would be designed to improve the prospect of securing sustainability and regaining market access, without having to meet the criterion of restoring debt sustainability with high probability.

Now the June 2014 report has a new, far-reaching proposal.
This shows how lawyers think in technical definitions of words. There is no actual default if they extend the maturity.

You could buy 30-day paper in the middle of a crisis and suddenly find under the IMF that 30 day note is converted to 30 year bond at the same rate!?

More from Martin Armstrong post here

Australia Confirms Superannuation Tax Changes

The Australian Government is to reform what it says is the punitive taxation of excess superannuation contributions.

Australian Money Calculator

At present, superannuation contributions that exceed the non-concessional contributions cap are taxed at the top marginal tax rate. The Government says that as the contributions come from income that had previously been taxed, this can take the overall rate up to 93 percent.

The Government has now released details of the changes announced as part of Treasurer Joe Hockey’s first Budget. The aim is to ensure that the treatment of excess concessional and non-concessional contributions is broadly consistent and that inadvertent breaches of the non-concessional contributions cap do not incur a disproportionate penalty.

For any excess contributions made after July 1, 2013, which breach the non-concessional cap, the Government will allow individuals to withdraw those excess contributions and associated earnings. If an individual chooses this option, no excess contributions tax will be payable, and any related earnings will be taxed at the individual’s marginal tax rate. Individuals who leave their excess contributions in the fund will continue to be taxed on these contributions at the top marginal rate.

– See source link at: http://www.tax-news.com/news/Australia_Confirms_Superannuation_Tax_Changes____64700.html

Transfer your UK or Ireland’s Pension Plan into Qualifying Recognised Overseas Pension Schemes

If you have a pension in UK or Ireland, and now either reside in another country, or plan to, you can transfer your pension into a QROPS, short for Qualifying Recognised Overseas Pension Schemes – and access a host of benefits.

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Click image for FREE Pensions Transfer Guide

QROPS offer some significant advantages no other type of pension scheme can.

QROPS Benefits
30% Lump Sum Available
Flexible income drawdown rules
No obligation to ever buy an annuity
Avoid high tax on pension income
Consolidate pensions into one easy to manage fund
Greater investment flexibility
Currency of your choice
Retirement age of 50
Transparent charges
Avoid further changes to UK tax and pensions legislation

There are now over three thousand QROPS available, and a myriad of different pension structures on offer.

Finding the best solution for your needs can be frustrating & time consuming, which is where I can help:

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Click image for FREE Pensions Transfer Guide

Email: adrian.rowles@devere-group.com for a FREE Pension Scheme Transfer Guide and an update on the safest tax efficient jurisdictions offering high yielding income.

The 401K Scheme — Government to Confiscate ?

Watch the 401K Scheme video below – Government to Confiscate ?

In these times, it is critical not to rely on government schemes as your main strategy to financial freedom! Trusting the wrong team can be expensive, hope is a week strategy, now is the time to create financial independence for the future. Planning with the right team will enhance the odds of reaching your goals.

A short video highlighting the importance of being financially aware, with the importance of working with an independent professional financial consultant whom can educate, inform & provide access to the advantaged opportunities normally out of reach as an individual investor.

The Looting Of Ukraine Has Begun! Starting with a 50% Reduction on Pensions

The Looting Of Ukraine Has Begun – Paul Craig Roberts
Naive protesters who believed that EU membership offered a better life are due to lose half of their pension by April.

But this is only the beginning…

The recently installed Kiev government has prepared an economic austerity plan that will cut Ukrainian pensions from $160 to $80 so that Western bankers who lent money to Ukraine can be repaid at the expense of Ukraine’s poor.
According to a report in Kommersant-Ukraine, the finance ministry of Kiev

It is Greece all over again.

This supporter of the Ukraine joining the EU has received her reward: a 50% cut in her pension

This supporter of the Ukraine joining the EU has received her reward: a 50% cut in her pension

11 billion euros is being offered by the EU as aid, this is not aid. It is a loan. Moreover, it comes with many strings, including Kiev’s acceptance of an IMF austerity plan.

Ukrainians participated in the protests that were used to overthrow their elected government, because they believed the lies told to them by Washington-financed NGOs that once they joined the EU they would have streets paved with gold. Instead they are getting cuts in their pensions and an IMF austerity plan.

The austerity plan will cut social services, funds for education, layoff government workers, devalue the currency, thus raising the prices of imports which include Russian gas, thus electricity, and open Ukrainian assets to takeover by Western corporations.

Ukraine’s agriculture lands will pass into the hands of American agribusiness.

The Huge 55% Tax charge effective April 6th !

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The NEW Tax liability increases 41 days from now on UK pension schemes that breach the reduced LTA threshold !?

This means that over half of retirement savings could be taken away from UK held pensions because of the new Tax threshold change on April 6th, 2014.

This massive Tax charge is decided by a calculation that tests it’s value against the LTA (Life Time Allowance) to do this the income needs to be capitalised. This is achieved by multiplying the income by 20 & adding any additional PCLS (Pension Commencement Lump Sums)

DB pensions (Final Salary Scheme) exceeding £62,500 are more likely to breach the new LTA threshold!
Even more people may be caught out if the LTA threshold continues to fall even lower before retirement (Death in service is also calculated as part of LTA at 3-4 times your salary)

Do nothing may result in higher losses to your hard earned retirement money!  Or find out NOW if you qualify to prevent the increased tax liability effective in 41 days & counting down.

That’s of course is if your pension fund is still around at retirement, as 97% of all UK pensions are underfunded with a widening deficit!

Some of the biggest companies in the UK have pension liabilities so large that even if the entire company was sold, it still could not honour even half their pension payments to its future retires! Did you pay into this company pension scheme & waiting for promised retirement payments? When did you last review your pension position & rules?

What are the government & companies response?

Some companies have attempted one off contributions to lower the deficit, but with pension fund investment returns lower than inflation & expenses, these efforts are short lived.
All final salary schemes are now closed to new employees, which along with lower employment opportunities reduces the number of contributors to support the increasing number of retires.
Raise retirement age!
Raise member contributions!
Raise individual pension tax liabilities!
Raise the cost of living thru inflationary monetary policies by competitive currency debasement!
Reduce pension funds investment returns thru investment restrictions & by keeping interest rates at artificially low levels in favour of debtors!

Sounds like a plan, but for who?

Future promises are already being broken on your savings that were paid into pension schemes! some people don’t have to accept this, there are preventative actions. Have you found out your position?

Get advised now! or pay the increasing costs later.

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Europe Considers Wholesale Savings Confiscation

From Reuters’, “the savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says.” What is left unsaid is that the “usage” will be on a purely involuntary basis, at the discretion of the “union”, and can thus best be described as confiscation.

These actions would directly impact pension funds & bank accounts!
Bail-In – Research & be informed.

This has been approved & signed into law by global governments, the new resolution tool that empowers the confiscation of savings when a financial institution is considered to be significantly important to the banking system, becomes too stressed.

Is your wealth diversified strategically ?
Are your pensions & savings exposed to confiscation ?

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Reuters article link: Exclusive: EU executive sees personal savings used to plug long-term financing gap

Further research reading from Zerohedge

FEDERAL TAKEOVER OF RETIREMENT PLANS IS COMING!

Link: FEDERAL TAKEOVER OF RETIREMENT PLANS IS COMING!

10 countries in the Europe and South America have engaged in pension theft, conversion or expropriation to fund government operations.

It is quite likely that we will see more of this theft in 2014, and before the financial crisis is over, probably from the TSP.

The brokerages will be completely compliant with these actions just like the Bail-in provisions signed by the FDIC, FED Bank of Canada and BOE, as was reported here on Silver Doctors in 2013.

Like Detroit with its complete expropriation of the $11,000,000,000 in pension plan funds, the Feds will use the $1.6 trillion in the TSP as they see fit.

They are patterning this on Poland and the NDRP. Poland recently confiscated 28 billion in Euros to reduce their country debt to 56% of the GDP.

The government simply took the funds from the private and government pension plans WITHOUT ANY COMPENSATION.

Surely that could never happen here!?

Link: FEDERAL TAKEOVER OF RETIREMENT PLANS IS COMING!
By SD Contributor AGXIIK

HSBC Bank Allegedly on Verge of Collapse: Second Major Banking Crash Imminent

HSBC Bank on Verge of Collapse: Second Major Banking Crash Imminent

Concerns about an imminent bank crash were further fuelled today at news that HSBC are restricting the amount of cash that customers can withdraw from their own bank accounts.
Customers were told that without proof of the intended use of their own money, HSBC would refuse to release it.
This, and other worrying signs point to a possible financial crash in the near future.

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HSBC imposes restrictions on large cash withdrawals

Some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it, the BBC has learnt.

Max was right! HSBC technically insolvent

Detroit pension cuts ‘function of mathematics’ – Investment banker

Oct 25 (Reuters) Cuts to Detroit’s public pensions & retiree healthcare

“the city plans to pay unsecured creditors, including the city’s pensioners, 
16 cents on the dollar” 84% LOSS ! There are about 23,500 city retirees. 

The city has said about half of its liabilities stem from retirement benefits, including $5.7 billion for healthcare and other obligations, and $3.5 billion involving pensions.

This is the crisis that face all governments with unfunded pension liabilities 

Dangerously high unfunded pension liabilities of state and local governments have threatened the fiscal solvency of states and municipalities as well as the nation’s long-term fiscal health, including the U.S. credit rating. Today public pension debt remains as high as $4.4 trillion and outstanding state and local municipal bond debt adds another $3.7 trillion. Last year, Hatch issued a report – which served as the foundation for the legislation – outlining the financial risks of the public pension debt crisis and its negative impact on the American economy.
U.S. Senator Orrin Hatch (R-Utah) Releases Report Detailing Threat of $4.4 Trillion Public Pension Debt