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The Pension Ponzi Scheme is Coming to an End

February 2, 2018

The Pension Ponzi Scheme is Coming to an End

 

Inevitably, all things must come to an end.  Our entire problem with government is we have ZERO accountability and ZEROqualification standards to even run for office. The Democrats have put forth blacks and women, not because of their abilities, but simply because they want to score votes. The latest proposal was to put Oprah Winfrey up for president. She is black and a woman. This is the qualification requirement? This is like going to Jay Leno for brain surgery. This is why we are in such a crisis. Oprah may be a nice person, but that does not qualify her to make a decision in international relations no less economics.

We impose no qualifications to be a politician. Anyone can run for office. We are in serious trouble because we elect people who have no idea what is going on and just assume everything has been working so why change it? I have warned that the Central Banks in quantitative Easing set the stage for the next crisis. The excessive low-interest rates for nearly 10 years has undermined the pension system while all governments have borrowed like crazy never considering what happens if rates rise?

In Britain, two out of three pension funds are in the deficit. In total, some 3,710 pension schemes are in deficit according to the Pension Protection Fund watchdog. The entire Ponzi Scheme of pension is falling apart. We need crisis management right NOW and there isn’t a hope in hell of moving to such a position of a Crisis Manager. Millions of workers around the world who believed in government are going to see their futures wiped out.

…click on the above link to read the rest of the article…

Global Pension Ponzi – Carillion Collapse One Of Many To Come

January 22, 2018

Global Pension Ponzi – Carillion Collapse One Of Many To Come

Pension Crisis And Deficit of £2.6B At Carillion To Impact UK Pensions

– Carillion collapses leaving a £900 million debt pile and 30,000 pensions at risk
– Carillion PLC share price has collapsed 94% in last twelve months
– Private analysis of Carillion’s pension deficit reveals it to be as high as £2.6 billion
– Figure adds to the UK’s ongoing pension crisis, both private and state are severely underfunded
– UK’s Private Pension Fund already has a levy of £550 million for next twelve months
– UK state pension crisis as state fund to be ‘exhausted by 2033’
– Ensure your pension is funded and properly diversified with gold

Source: Wikimedia

The looming pension crisis has been signalled in the collapse of Carillion. The deficit of latest private sector dead-on-arrival Carillion is officially £580 million. However, private reports suggest it could be as high as £2.6 BILLION.

According to a Sky News investigation: ‘the £2.6 billion figure relates to the cost to Carillion of paying an insurance company to guarantee all of its pension liabilities, and is significant because it is likely to be the sum claimed on behalf of the pension schemes as part of the liquidation process.’

Nearly 30,000 UK workers’ pensions are at risk thanks to Carillion management’s total mismanagement of a company that has seen its share price collapse 94% in the last 12 months.

Carillion’s 27,500-member pension scheme was placed on an ‘at risk list’ in autumn 2017. Arguably, it like many other pension funds should have been there many months ago.

Sadly, Carillion is just the latest in a very long string of serious company collapses that have highlighted the major pension crisis in the UK and around the Western world. It also likely signals that we may be on the verge of many, many more very large corporate bankruptcies in the UK due to massive debt levels and unfunded liabilities.

…click on the above link to read the rest of the article…

Pension Shocker: Plans Face $2 Trillion Shortfall, Moody’s Says

July 19, 2015

Pension Shocker: Plans Face $2 Trillion Shortfall, Moody’s Says

Last month, in “Cities, States Shun Moody’s For Blowing The Whistle On Pension Liabilities,” we highlighted a rift between Moody’s and some local governments over the return assumptions for public pension plans.

To recap, when it comes to underfunded pension liabilities, one major concern is that in a world characterized by ZIRP and NIRP, it’s not entirely clear that public pension funds are using realistic investment return assumptions. The lower the return assumption, the larger the unfunded liability. After 2008, Moody’s stopped relying on the investment return assumptions of cities and states opting instead to use its own models. Unsurprisingly, this led the ratings agency to adopt a much less favorable view of state and local government finances and as WSJ reported, rather than admit that their return assumptions are indeed unrealistic, local governments have opted to drop Moody’s instead.

The debate underscores a larger problem in America. Almost half of the states in the union are facingbudget deficits.

Underfunded pension liabilities are one factor, but the reasons for the pervasive shortfall vary from plunging oil revenues to plain old fiscal mismanagement. The pension issue gained national attention after an Illinois Supreme Court decision threw the future of pension reform into question and effectively set a precedent for other states, sending state and local officials back to the drawing board in terms of figuring out how to plug budget gaps. One option is what we have called the “pension ponzi” which involves the issuance of pension obligation bonds. Here is all you need to know about that option:

…click on the above link to read the rest of the article…

 

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