LOS ANGELES, Jan. 11, 2017 /PRNewswire/ -- With over $5 trillion in underfunded pensions, America is facing a pension crisis brought to a head on December 16th by the Treasury Department's unprecedented approval of a private pension fund's proposal to cut the benefits of 2,000 retired ironworkers in Cleveland. "It's called the American Dream because you have to be asleep to believe in it," a quote from the late comedic legend, George Carlin, embodies the national pessimism American workers are feeling as their financial stability erodes right in front of their eyes.
Jack Hanney, a senior partner with Patriot Gold Group, America's leading gold IRA dealer, stated that he'd "never before heard of the Treasury greenlighting cuts by private pension plans." With five other pension plans already under review, this move by the Treasury could open the floodgates to benefit cuts for millions more hard-working Americans.
Only a week earlier, members of the Dallas Police and Fire Pension Fund discovered unfunded pension liabilities totaling $7.6 billion, more than the city's overall operating revenue for five years. Dallas Mayor Mike Rawlings vowed to pursue criminal charges for the gross mishandling of city workers' pensions. The run on the Dallas Police and Fire Pension Fund resulted in withdrawals exceeding $500 million and resembled the Bank Run of 1933.
The first of four banking panics during the Great Depression began in 1930 with a small bank in Nashville, Tennessee. It took three years for the panic to escalate and trigger runs on over 4000 more banks by 1933, when President Roosevelt restored confidence in the financial markets. In today's ubiquitously connected society, it would take less than a week for a similar run on pension funds to cost millions of Americans their retirement savings.
Americans shouldn't allow the financially calamitous effects of the 1930s bank runs to repeat themselves. Precious metals have stood the test of time as a safe-haven investment and Americans can quickly and conveniently transfer their savings from private pension funds to a self directed IRA (SDIRA). With the death of the American dream looming around the corner, people are waking up to the fact that gold and silver investment could be the lifejacket American retirees need to preserve their wealth and protect their loved ones.
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