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Category Archives: Pensions

Promises, Promises


[courtesy Google Images]

[courtesy Google Images]

The Chicago Tribune recently published “A federal solution to Chicago’s public pension mess”. According to that article, Chicago’s pension debts promised to retired government employees, can’t be paid based on current funding. Therefore, the city’s government will raise taxes, cut benefits and force Chicagoans into an era of “austerity” similar to that which has been inflicted on the people of bankrupt Greece.

But even after an era of austerity, the pension debt still can’t and won’t be paid in full.

Chicago is a microcosm of the US and world economies. Pension plans throughout the U.S. and global economies are going to fail. Many retirees are heading for poverty.

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I’m not against unions, but I have no sympathy for the Chicago teachers and police officers’ unions. It may seem sad that they’re about retire without fat pensions, but they’re not innocent victims. They bribed crooked politicians to rob future generations (children, grandchildren, even the unborn) to provide pensions to government employees that were not only “overly-generous” but unearned.
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Monetary Madness Part I—Negative Interest Rates


Negative Interest Rates-- Heading for Hell? [courtesy Google Images]

Negative Interest Rates–
Taking us towards Hell?
[courtesy Google Images]

The fundamental premise underlying negative-interest rate bonds is that lenders pay government borrowers for the “privilege” of lending to government. Based on this premise, governments receive loans at less than the face value of the bond. For example, if you loaned $100,000 to the government on a negative-interest loan, you might only receive, say, $98,000 when you redeemed that bond. You’d lose $2,000 for the privilege of lending to the government.

In all of world history, I doubt that there’s ever before been a time when lenders paid borrowers for the privilege of lending money.

The world is embracing negative-interest rate bonds for the first time. That fact is not evidence of economic creativity and financial innovation so much as evidence of desperation and the financial madness that lies at the heart of debt-based monetary and economic systems.

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A few facts about negative-yield bonds:

According to Bank of America Merrill Lynch, the global amount of government bonds having negative yields is now $13 trillion,.

Just two years ago, there were virtually zero negative-interest rate bonds. The subsequent, two-year rise to $13 trillion is unprecedented.

In February A.D. 2015, the total amount of negative-interest debt was $3.6 trillion.

By February A.D. 2016 that negative-interest debt had nearly doubled to $7 trillion.

In the five months since February, A.D. 2016, the amount of negative-yielding bonds nearly doubled again to $13 trillion.

The spread of negative-yielding bonds is unprecedented, fantastic and accelerating.

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Good News/Bad News for English Pensioners


[courtesy Google Images]

[courtesy Google Images]

24hgold.com reports in “UK’s Royal Mint will sell pension investors gold they can never see” that,

“The Royal Mint in England is to open up its gold vaults to UK pension investors. The Royal Mint will make some of its gold bars available to investors wanting to hold it in tax-efficient pension pots.

“For UK citizens, this is the first time that Royal Mint gold bullion has been authorised by HM [Her Majesty’s] Revenue & Customs . . . for holding in specific pensions.

“Investors are to be offered a choice of bullion, from Royal Mint Refinery 100-gram and 1-kilogram bars, to Signature Gold—a service that allows customers to purchase and own a share of a 400-ounce gold bar.”

Sounds pretty good. However, here comes the punch line:

“Pension investors purchasing gold bars through the Royal Mint will not be able to take delivery of their purchases as they will be placed in storage in ‘The Vault,’ the Royal Mint’s secure storage facility in Wales.”

And, according to the title of the article, pension investors won’t be able to even see the gold they’ve allegedly purchased.

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“Refashioning Private Multi-Employer Pension Plans”


As I’ve said repeatedly for the past five years, “What can’t be paid, won’t be paid.”  The government is broke; many pension funds are broke; more financial entities that have made extensive “promises to pay” will follow soon enough.

Whatchu gonna do?  You can’t squeeze blood out of a stone, or currency out of bankrupt pension plans.  You can yell, scream and howl, but if the currency’s not there, it can’t be paid and won’t be paid.  Many of you who’ve trusted in other people to manage pensions and provide for your retirement are heading for a time of betrayal, stress, rage, regret and sorrow.

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The “Pop” Heard ‘Round the World


Will Somebody Please Turn Off the Bubble Machine? [courtesy Google Images]

Will Somebody Please Turn Off the Bubble Machine?
[courtesy Google Images]

I have no doubt that the cornerstone of the New World Order (N.W.O.) is a debt-based monetary system.  I have no doubt that, if today’s debt-based monetary system were to fail, The Powers That Be would work feverishly to install a second, debt-based monetary system.  If the today’s debt-based monetary system (built on fiat- and/or petro-dollars) failed, the N.W.O. would seek to impose a “new-and-improved” debt-based system that might be built on Special Drawing Rights (SDRs).  These SDRs are nothing more than new debt-instruments issued by the IMF rather than the old debt-instruments currently issued by the Federal Reserve and other central banks.

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Truckers’ Pensions Cut By Half


[courtesy Google Images]

[courtesy Google Images]

CNN Money reports in “Retired Truck Drivers Could See Their Pension Checks Cut in Half” that:

 

“Retiree Bill Hendershot stands to lose $2,104 a month if his pension fund gets its way.

The Central States Pension Fund is pursuing a plan that would slash pension checks in half for some former union truck drivers. The fund is on the brink of insolvency and says it needs to cut benefits for 273,000 current and future retirees in order to stay afloat.

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Looting for Dollars


Possible Remedy for Government Looting [courtesy Google Images]

Possible Remedy for Government Looting
[courtesy Google Images]

A Russian analyst named Dmitry Kalinichenko recently penned a brilliant article entitled “Grandmaster Putin’s Golden Trap”.  The original article was written in Russian and subsequently translated into English.  Some of the translation’s language is a little rough, but it all makes sense.

Part of his article discussed the significance of a recent announcement by China:

 

“China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars. . . . [W]hen this statement translated from financial language, it reads: ‘China stops selling their goods for dollars.’

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