Spain Plunders 90% Of Social Security Fund To Buy Its Own Debt

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Offline larsonstdoc

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http://www.prisonplanet.com/spain-plunders-90-of-social-security-fund-to-buy-its-own-debt.html

  Do you think this will happen in the US?  IT ALREADY HAS.  THE SOCIAL SECURITY TRUST FUND HAS BEEN ROBBED FOR AT LEAST 20 YEARS.  THERE IS NO MONEY IN THE TRUST FUND.  IT IS A CRUEL JOKE.  SOCIAL SECURITY---THEY JUST WRITE THE CHECKS ON WHAT COMES IN FROM THE EMPLOYED TAXES EVERY MONTH.  THE REASON WHY THIS HAS HIT THE NEWS IN SPAIN IS THAT SPAIN CAN'T PRINT MONEY LIKE THE US.  SPAIN AND THE REST OF THE COUNTRIES IN THE EU ARE SLAVES TO THE NWO----THEY DON'T HAVE PRINTING PRESSES LIKE WE DO IN THE US.  THE USA WILL PRINT MONEY UNTIL EITHER THE SCAM IS UP OR WE RUN OUT OF TREES.

  We are buying our own debt.  The Federal Reserve is buying $85 BILLION A MONTH (source--Jerome Corsi).  NO PROBLEM.  WE HAVE PRINTING PRESSES AND COMPUTERS TO MAKE THE TRANSACTIONS. 


            
Zero Hedge
Jan 4, 2013
With Spanish 10Y yields hovering at a ‘relatively’ healthy 5%, having been driven inexorably lower on the promise of ECB assistance at some time in the future, the market has become increasingly unsure of just who it is that keeps bidding for this stuff. Well, wonder no longer. As the WSJ notes, Spain has been quietly tapping the country’s richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds – with at least 90% of the €65 billion ($85.7 billion) fund has been invested in increasingly risky Spanish debt. Of course, this is nothing new, the US (and the Irish) have been using quasi-government entities to fund themselves in a mutually-destructive circle-jerk for years – the only difference being there are other buyers in the Treasury market, whereas in Spain the marginal buyer is critical to support the sinking ship. The Spanish defend the use of pension funds to buy bonds as sustainable as long as it can issue bonds – and yet the only way it can actually get the bonds off in the public markets is through using the pension fund assets. The pensioners sum it up perfectly “We are very worried about this, we just don’t know who’s going to pay for the pensions of those who are younger now,” or those who are older we would add.

Via Wall Street Journal: Spain Drains Pension Fund In Borrowing Spree
Spain has been quietly tapping the country’s richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds, raising questions about the fund’s role as guarantor of future pension payouts.
Now the scarcely noticed borrowing spree, carried out amid a prolonged economic crisis, is about to end, because there is little left to take. At least 90% of the €65 billion ($85.7 billion) fund has been invested in increasingly risky Spanish debt, according to official figures, and the government has begun withdrawing cash for emergency payments.
Although the trend has drawn little public attention or controversy, it has become a matter of concern for the relatively few independent financial analysts who study the fund, which is used to guarantee future payments of pensions.

Online chris jones

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Re: Spain Plunders 90% Of Social Security Fund To Buy Its Own Debt
« Reply #1 on: January 04, 2013, 02:28:50 pm »
Larson........ Dominos.