We've been saying for a while now, central banks have failed.
Central bankers bailed out the big banks based on a meme they use about every generation or so, the financial system is on the brink. It's one of their favorite big lies. So they deliberately chose to screw the COLA crowd not to mention others, many still employed, with their crazy monetary nonsense.
But even if it were on the brink, there's another more important question here: Who caused it, you? What role did the elites and the politicians who take money from the elites to do their dirty work? No matter how you slice it, it's a pure straight forward question and it deserves the same pure, straight forward answer:Who caused the financial turmoil, them or you?
It's important to remember that this was a deliberate, premeditated choice by these central bank bureaucrats. Their aim was obvious, save the elites. Feet and flames often go together and need to. The huge orchestrated Trump blacklash is an attempt to negate that.
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Central bankers lowered interest rates to near zero or below to try to revive their gasping economies. In the process, though, they have put in jeopardy the pensions of more than 100 million government workers and retirees around the globe.
In Costa Mesa, Calif., Mayor Stephen Mensinger is worried retirement payments will soon eat up all the city’s cash. In Amsterdam, language teacher Frans van Leeuwen is angry his pension now will be less than what his father received, despite 30 years of contributions. In Tokyo, ex-government worker Tadakazu Kobayashi no longer has enough income from pension checks to buy new clothes.
Managers handling trillions of dollars in government-run pension funds never expected rates to stay this low for so long. Now, the world is starved for the safe, profitable bonds that pension funds have long needed to survive. That has pulled down investment returns and made it difficult for funds to meet mounting obligations to workers and retirees who are drawing government pensions.
As low interest rates suppress investment gains in the pension plans, it generally means one thing: Standards of living for workers and retirees are decreasing, not increasing.
“Unless ordinary people have money in their pockets, they don’t spend,” the 70-year-old Mr. Kobayashi said during a recent protest of benefit cuts in downtown Tokyo. “Higher interest rates would mean there’d be more money at our disposal, even if slightly.”
The low rates exacerbate cash problems already bedeviling the world’s pension funds. Decades of underfunding, benefit overpromises, government austerity measures and two recessions have left many retirement systems with deep funding holes. A wave of retirees world-wide is leaving fewer active workers left to contribute. The 60-and-older demographic is expected to roughly double between now and 2050, according to the United Nations.
wsj.com/articles/era-of-low-interest-rates-hammers-millions-of-pensions-around-world
Central bankers bailed out the big banks based on a meme they use about every generation or so, the financial system is on the brink. It's one of their favorite big lies. So they deliberately chose to screw the COLA crowd not to mention others, many still employed, with their crazy monetary nonsense.
But even if it were on the brink, there's another more important question here: Who caused it, you? What role did the elites and the politicians who take money from the elites to do their dirty work? No matter how you slice it, it's a pure straight forward question and it deserves the same pure, straight forward answer:Who caused the financial turmoil, them or you?
It's important to remember that this was a deliberate, premeditated choice by these central bank bureaucrats. Their aim was obvious, save the elites. Feet and flames often go together and need to. The huge orchestrated Trump blacklash is an attempt to negate that.
----
Central bankers lowered interest rates to near zero or below to try to revive their gasping economies. In the process, though, they have put in jeopardy the pensions of more than 100 million government workers and retirees around the globe.
In Costa Mesa, Calif., Mayor Stephen Mensinger is worried retirement payments will soon eat up all the city’s cash. In Amsterdam, language teacher Frans van Leeuwen is angry his pension now will be less than what his father received, despite 30 years of contributions. In Tokyo, ex-government worker Tadakazu Kobayashi no longer has enough income from pension checks to buy new clothes.
Managers handling trillions of dollars in government-run pension funds never expected rates to stay this low for so long. Now, the world is starved for the safe, profitable bonds that pension funds have long needed to survive. That has pulled down investment returns and made it difficult for funds to meet mounting obligations to workers and retirees who are drawing government pensions.
As low interest rates suppress investment gains in the pension plans, it generally means one thing: Standards of living for workers and retirees are decreasing, not increasing.
“Unless ordinary people have money in their pockets, they don’t spend,” the 70-year-old Mr. Kobayashi said during a recent protest of benefit cuts in downtown Tokyo. “Higher interest rates would mean there’d be more money at our disposal, even if slightly.”
The low rates exacerbate cash problems already bedeviling the world’s pension funds. Decades of underfunding, benefit overpromises, government austerity measures and two recessions have left many retirement systems with deep funding holes. A wave of retirees world-wide is leaving fewer active workers left to contribute. The 60-and-older demographic is expected to roughly double between now and 2050, according to the United Nations.
wsj.com/articles/era-of-low-interest-rates-hammers-millions-of-pensions-around-world
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