Sometimes, your “worst fears” become reality.
Why so dramatic?
Because I feared that European governments are up to plundering pension funds. Funds, that people have been building their entire life for.
But then I discovered that this is already happening. In a very sneaky way.
Keep reading, because this will affect you. And your parents.
But let me tell you the whole story…
It started when I saw Gerrit Zalm on the television. He is a former Dutch finance minister.
He was active during the good times. The economy was booming. And it sticks to him (like he had anything to do with it).
And now everybody trusts him.
You can see him on the television whenever something needs needs to be “sold” to the public. Like during the introduction of the Euro.
And more important, he is not afraid to lie.
He also works at ABN AMRO. A nationalized bank that the Dutch government saved from bankruptcy during the crisis. With tax payer’s money.
Now, I told you that everybody always believes him.
Everybody except me…
Whenever I see this man I first start mumbling. Nothing to crazy.
Then, I realize where he is aiming at and I start to get annoyed. Not much later I start to bite my nails and sweat. “That is not true”, “you are lying”, “you miserable @#%*&”. I shout at the television.
What was it that he said this particular time?
Along these lines: “the Dutch pension funds are extremely wealthy. The capital needs to become “active” and used to prop up the Dutch economy. For example, they need to invest in the mortgage market.”
Where does he get this nonsense?
I am sorry Gerrit, but the pension funds have only ONE function. They should take care of the pensions of those that have been paying MANDATORY contributions their entire life to save for their retirement.
They are not tools for supporting the economy. Or any other central planning delusion that you and your corporate and academic buddies come up with.
Capital does not to be made “active”. It is already being invested in an investment fund!
And that is how it should work. People produce, get paid and save what they don’t spend. What is left is capital. This is lend out or invested for future gains. That is why it is called capitalism.
And here is how it works in such a system: if these mortgages would have been such good investments, the Dutch pension funds would probably already have bought them.
But they haven’t.
The Dutch population has one of the highest mortgage debts in the world.
So maybe it is not the best investment for peoples retirement money?
But mortgages sit now on the balance sheet of banks that want to get rid of these risky assets.
Banks like the one Gerritje works for…
It is all so obvious.
Don’t you think?
But I spoke to my most intelligent friend. He thought it was a good idea to have the pension funds support the Dutch economy. And then I knew. People buy into this stuff without much thought. It just has to sound nice.
And it was then I knew the governments and financial sector see the pension funds as the next targets.
…But wait, you said that pension funds were already being plundered…
Well what do I know?
I had to wait until I found this interview with Pieter Lakeman (https://www.youtube.com/watch?v=KIfR4WQnEDY in Dutch)
He explains EXACTLY how the Dutch Central Bank is forcing ALL Dutch pension funds to buy 30 year European government bonds at record low fixed yields.
This means that pension funds are being forced to lend out money to bankrupt southern European governments.
Just stop here and read that sentence again.
Such an investment assumes that in 30 years time non of these countries will default and they will still be in the Euro. They assume that there still will be a Euro. With the first European nation on the brink of default, an ambitious statement.
Probably because no one else would buy these bonds and the whole house of cards would come tumbling down.
What Is The Main Problem:
Interest rates are at record lows. And they might stay that way for the coming years. But they WILL go up before the end of 30 years. And then something interesting happens.
A 30 year bond with let’s say 3% interest is less interesting than a 30 year bond with 5% interest. No one will buy the 3% bond. Unless at a major DISCOUNT.
If interest rates go up, the value of the portfolio will go down. If the interest rates are at record low, the have NOWHERE to go but up. So a loss on these investments is guaranteed. The only question is…
…How big will it be…
Again, no sane person would take such risky bets.
But here is how to get them to do it without consent:
You force people into a mandatory pension fund. You pass legislation to make sure that all those pension invest “conform standards” (and sells is as protectiong the common good). And then you change the “standards” as you see fit.
(They actually threaten the managers of these funds that they will get on a black list and will never be able to work in finance again).
And that is how you can take control of the Dutch pension fund. One of the biggest in the world.
It is CRIMINAL behaviour.
I feared that this one day would happen. And then suddenly there it is.
Doesn’t that make you mad?
Dutch Pension Funds Plundered – Conclusion
The only Dutch citizens that are not forced into mandatory pension schemes are those not living in The Netherlands and the people that run their own business. And I read an article that the last possibly also will have to be enrolled in a pension plan. They are bullied that they do not “save” enough.
All for their own good, of course…
Anything more to add?
Oh yeah… One more thing.
My dad’s pension fund has stopped “indexing”. This means that the payments he now gets have been fixed, regardless of the inflation. So he looses purchasing power every year. That ALSO is already happening.
My advice is to take matters into your own hand. Keep saving for a rainy day. And pay as little into these government schemes as possible.
And realize that one day you might ALSO have to pay for the pension of your parents. Like currently the children in the third world support their families.
If you have read this article carefully, you have discovered two ways that pensions are being plundered in The Netherlands. And one that is being discussed.
There are similar stories happening all around the Western world.
I have no doubt that during the next economic crisis pension funds (and peoples bank accounts) will be used to solve an “emergency” and bail out all sorts of To Big To Fail revolving door buddies.
One of the argument that international entrepreneurs or digital nomads give to not completely leave heir home country is because of social welfare and pension “security” that they will go without.
I would argue that these are PERFECT reasons to leave…
Mad & Sad
P.S. Keep paying up, you sitting duck. Or follow me to the land of milk and honey.