Lombardi Publishing Corporation, a 28-year-old consumer publisher that has served over one million customers in 141 countries, is warning that the government practice of confiscating private savings to reduce national debt, as seen in Cyprus and Poland, could happen in the United States.
“In March 2013, the government in Cyprus, in an effort to save itself from default and pay down its out-of-control debt levels, imposed a one-time levy on bank accounts, meaning it confiscated a portion of bank deposit savings,” says lead contributor and financial expert Michael Lombardi. “Then, in September 2013, Poland reduced some of its national debt by taking assets from private pensions and making them public.”
With the savings of 500 million individuals living in the debt-laden European Union on the line, there are fears that the confiscation of private funds to support public interests could become routine. A recently revealed document shows that in the second half of 2014, the European Union will be asking the region’s insurance watchdog for advice on a possible draft law to mobilize personal pension savings for long-term financing. (Source: Jones, H., “Exclusive: EU executive sees personal savings used to plug long-term financing gap,” Reuters, February 12, 2014; http://www.reuters.com/article/2014/02/12/us-eu-banks-savings-idUSBREA1B1ZI20140212.)
“Could what’s about to happen in the European Union be a testing ground for what’s to come next for the U.S. in respect to using private citizen pensions to help the government’s finances?” Lombardi observes. “For starters, the debt situation in the U.S. is actually worse than it is in the European Union.”
In fact, Lombardi explains, the U.S. has the highest national debt level when it comes to nominal value, and it’s only expected to increase. While the national debt currently stands at $17.0 trillion, analysis by Lombardi Publishing Corporation shows the national debt could soar to as high as $34.0 trillion.
For now, Lombardi believes, the chances that the U.S. government will seize the savings of American citizens are remote. But for millions in the European Union, that question might soon be answered, as citizens come to the rescue of their governments, albeit involuntarily.
“Still, with the Federal Reserving cutting back on it s bond buying program and China and Japan no longer interested in U.S. Treasures, the question of who will eventually fund our government debt is a major hurdle—and an issue everyone should consider very carefully,” he concludes.
Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, visit www.LombardiPublishing.com.
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