Reuters news service reported an ominous story on February 12 indicating that authorities in the European Union may soon be resorting to the “Polish option” of nationalizing pension funds to pay for national debt obligations, as well as to fund continued out-of-control government spending.
According to the Reuters report:
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....
"The economic and financial crisis has impaired the ability of the financial sector to channel funds to the real economy, in particular long-term investment," said the document, seen by Reuters.
The Commission will ask the bloc's insurance watchdog in the second half of this year for advice on a possible draft law "to mobilize more personal pension savings for long-term financing", the document said....
The EU executive will also complete a study by the end of this year on the feasibility of introducing an EU savings account, open to individuals whose funds could be pooled and invested in small companies.
The Reuters report reads as if it were written by the European Central Bank or the Federal Reserve, employing the “purposeful obfuscation” of “Fed-speak” that Fed Chairman Alan Greenspan (following his retirement) boasted of employing when deceiving Congress with convoluted “destructive syntax.”
For the savvy reader, the Reuters story sent up a host of red flags, but for many, if not most, readers, unfamiliar with the “Fed-speak” and “Greenspanisms,” the article was merely about new efforts by EU authorities to “boost the economy.” And that would be a good thing, right? And solve the “long-term investment” problem; another good thing, yes? Even the Reuters title — “Exclusive: EU executive sees personal savings used to plug long-term financing gap” — aims at preparing readers to welcome the planned government confiscation of their savings.
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