While most people rarely pay attention to most Executive Orders coming out of the White House each year, they are often written and signed by the President months or even years in advance before their actual implementation takes place. And in regards to President Obama’s dream of a Global Infrastructure Initiative, where private monies would be used in place of taxpayer monies to build or maintain the infrastructure of tomorrow, that dream is quickly becoming reality as on Sept. 22, economist Martin Armstrong reported that for the first time, assets from a state pension fund are being sold off and diverted to allegedly pay for infrastructure projects the government deems as necessary.
Calpers, which is one of the largest pension funds in the world, and the primary pension fund for workers in the state of California, is selling off $4 billion it has currently invested and is forwarding the money to a public-private partnership that will assess necessary or even politically chosen projects. And while these types of investments have normally been done in the past in the forms of Municipal or Corporate Bonds, the direct investing of cash into a purely bureaucratic and politically controlled project is part and parcel to President Obama’s desire for a shift of private retirement accounts moving into government controlled hands.
Calpers, California pension fund, is selling off $4 billion of hedge funds to divert that money to be wasted in Obama’s dream project – infrastructure fund.
This idea was floated and endorsed at CAIRNS. “We have agreed to come away from government-financed growth measures to more private investment,” said Australia’s Finance Minister Joe Hockey. These are being called Public Private Partnerships (PPP), and will be extremely critical in the future for here lies the final destruction of the pension funds precisely as Japan bankrupted the Japanese Postal Saving Fund using that private money for political purposes to try to stimulate the economy, which failed. With PPP, public funds will be sold to the public as being a highly professional long-term investment that will further shrink economic growth and liquidity. They cannot possibly work.
Obama’s idea of a Global Infrastructure Initiative to increase quality investment, particularly in infrastructure is merely to displace government spending with using pension money. – Armstrong Economics
President Obama’s track record for using public funds to pay for infrastructure projects is not good, and was deemed a failure after he asked Congress back in 2009 for nearly $1 trillion to pay for a ‘shovel ready’ jobs and projects program. In fact, some of this money was found to have gone to several of his campaign contributors to keep their ‘green energy’ companies solvent, with over $4 billion of taxpayer money being spent on corporations that eventually went bankrupt.
Congressional Democrats, including President Obama, have long desired to confiscate the nearly $17 trillion currently held in private pensions and retirement accounts and move them into a government controlled program similar to Social Security. And the first part of this transfer was facilitated earlier this year when the President announced a new government run MyRA initiative meant to divert your retirement savings from traditional investment vehicles into the hands of state run financial planners.
Through several roundabout means, it appears that the government is trying its best to get their hands on the over $17 trillion we as Americans hold as investments towards our retirement. And using legislation such MyRA, Dodd-Frank, and the internationally run Global Infrastructure Initiative, President Obama and the Federal government are very quickly setting the framework to confiscate what remains of the wealth of middle class America, and fund a government bureaucracy that is already over $17 trillion in debt, and has almost $100 trillion in debt obligations it has no means to pay for.