Supreme Court ruling sets the stage for “economic totalitarianism”
Economist Martin Armstrong warns that a Supreme Court ruling last week has set the stage for the federal government to begin seizing private pension funds.
According to Armstrong, the outcome of Tibble v. Edison, which found that employers have a duty to protect their workers’ 401(k) plans from mutual funds that perform poorly, will grease the skids for the feds to seize private funds and prosecute companies who manage mutual funds badly.
“Between the court ruling and the Obama administration’s push for stronger fiduciary rules,” the developments send a, “strong message that government can much easier seize the pension fund management industry of course to “protect the consumer,” writes Armstrong, warning that the ruling, “sets the stage to JUSTIFY government seizure of private pension funds to protect pensioners,” when the economy gets “messy”.
“This fits perfectly just in time for the Obama administration’s next assault as they prepare a landmark change of its own by issuing rules requiring that financial advisers put the interest of customers ahead of their own,” writes Armstrong. “This creates a very gray area wide enough to justify public seizure of pension funds under management.”
Following the 2008 financial collapse, reports emerged that the federal government was planning to seize the private 401(k) pensions of millions of Americans while enforcing an additional 5 per cent payroll tax as part of a new bailout program that would empower the Social Security Administration to redistribute pension funds “fairly” amongst citizens.
Armstrong warns that the development is part of a wider move towards “economic totalitarianism,” which is also characterized by efforts to eliminate physical cash altogether in the name of giving central banks more power.
Numerous prominent individuals have called for hard currency to be banned in recent months, including former Bank of England economist Jim Leaviss, who wrote a piece for the Telegraph which argued that, “Forcing everyone to spend only by electronic means from an account held at a government-run bank would give the authorities far better tools to deal with recessions and economic booms.”
Earlier this month, German Council Of Economic expert Peter Bofinger also said that imposing a cashless society would make it easier for central banks to enforce their economic policy.
As we have covered at length, commercial banks are beginning to impose more draconian controls on the withdrawal and depositing of cash, with the practice being treated as a suspicious activity even for relatively modest sums.
Armstrong, who correctly predicted the 1987 Black Monday crash as well as the 1998 Russian financial collapse, also warned last year that a coming financial collapse will cause widespread riots to erupt in America by 2016.