Saturday, September 7, 2013

Poland Confiscates Half Of Private Pension Funds To "Cut" Sovereign Debt Load

First Cyprus Bailed in by freezing deposits over EUR 100K to reduce its debt load to comply with ECB mandates. Now Poland confiscates private pensions funds.  Indian are busy trying to smuggle diamonds into Singapore. What next

To summarize the Polish Pensions fund confiscation
  1. Poland Government has too much debt to issue more debt
  2. Government nationalizes private pension funds making their debt holdings an "asset" and commingles with other public assets
  3. New confiscated assets net out sovereign debt liability, lowering the debt/GDP ratio
  4. Debt/GDP drops below threshold, government can issue more sovereign debt
To quote
In the aftermath of Cyprus, we now know what the two most recent European blueprints for preserving the myth of solvency are: bail-ins, which confiscate deposits, and pension fund "overhauls", which confiscate, well, pension funds.

More here


  1. They were trying something similar here.

  2. Where do think our politicos get their ideas. However, the originators of these ideas implement them with much more finesse.