The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label pensions. Show all posts
Showing posts with label pensions. Show all posts

Monday, July 21, 2014

On cusp of German bail-in vote, 50% of cities stand on verge of insolvency

On July 9, German legislators voted to approve bank bail-ins as the primary solution for re-capitalization the next time their financial system experiences a collapse or major crisis.  Thus following in the footsteps of the Cyprus Experiment, which saw depositors lose upwards of 60% of the money they thought was safely protected in their banks and financial institutions, German depositors, not the taxpayers, are now on the hook to pay for a bank’s corruptness, risky bets, or bad decisions.

However, even this egregious new policy may pale in comparison to what is coming for the German state as it is now estimated that 50% of all municipal governments within the chief Eurozone nation are underwater, and on the brink of insolvency and bankruptcy.




Read more on this article here...

Tuesday, June 10, 2014

Pension shortfalls force states to put retirees money at risk

If there is one thing most politicians fail at, it is their ability to project and plan for the future, when it often more beneficial to their careers to sell out for today.  And because politicians for the most part are tied to 2-4 year election cycles, it rarely behooves them to make policies that are beneficial to constituents over the long run, and instead are more apt to sacrifice the future for their political present.

Because of the inflated housing bubble of the mid 2000′s, states were saturated with tax revenues and budget surpluses.  Yet instead of trusting history that validates that all economic cycles go both up and down, they spent this money like drunken sailors and even mortgaged their budgetary future through debt and the belief that the good times would never go away.  Because of this, state pension funds, which were primarily driven by municipal bonds and equity stocks, cratered hard during the Great Recession that began in 2009.  And five years later, these retirement funds have not yet recovered in nearly all regions within the United States.


Read more on this article here...

Wednesday, April 17, 2013

Philadelphia could be next to join Stockton in declaring municipal bankruptcy

Last week, a judge ruled that Stockton, California could declare bankruptcy to seek protection from their debt and creditors, and on April 16, it has been discovered that the city of Philadelphia is also investigating bankruptcy options in lieu of their massive debt and pension obligations.



Philadelphia Mayor Michael Nutter, whose municipality has the lowest credit rating of the five most-populous U.S. cities, will address investors at a conference financed by underwriters and closed to the public and the press.
The invitation bills tomorrow’s meeting as a chance to hear “Philadelphia leaders and investors discuss building the city’s future.”
Philadelphia is hoping to attract investors for the city, which is rated three steps above junk by Standard & Poor’s. The city and its authorities have $8.75 billion in outstanding debt as of September, according to bond documents. Philadelphia’s pension system is 47.6 percent funded this year, the documents say. - Bloomberg via Mish Shedlock

Should Philly be forced to sell city assets, or follow through with bankruptcy preceedings, then it will open the floodgates to a large number of other cities like Detroit, Camden, and perhaps even Chicago who are experiencing the same debt and underfunded pension levels.

Thursday, January 10, 2013

China and Japan continue to move dollars into physical gold

While less than 5% of all American own physical gold and silver as an investment, or wealth protection, Asian countries like China and Japan continue to buy the precious metal in large quantities, and look to raise the stakes by putting pension fund deposits to work buying even more.


It is time for the November update, and it's a doozy: at 90.8 tons, this was the second highest gross import number of 2012, double the 47 tons imported in October (which many saw, incorrectly, as an indication of China's waning interest in the yellow metal), and brings the Year to Date total to a massive 720 tons of gold through November. If last year is any indication, the December total will be roughly the same amount, and will bring the total 2012 import amount to over 800 tons, double the 392.6 tons imported in 2011. - Zerohedge

Japanese pension funds, the world’s second-largest pool of retirement assets after the U.S., will more than double their gold holdings in the next two years as the new government pushes for a higher inflation target, according to an adviser to the funds.

Assets held by Japanese pension funds in gold-backed exchange-traded products may expand to 100 billion yen ($1.1 billion) by 2015 from less than 45 billion yen at present, said Itsuo Toshima, who represented the Tokyo office of World Gold Council for 23 years through 2011. - Bloomberg

China has been seeking to fortify their reserves in preparation of a new global reserve currency, and one that may be tied to gold once again.  For Japan, who has been creating new trade partnerships with China and other Asian nations outside the reserve currency, the belief that coming inflation in the U.S. economy may lead to a tremendous winfall should gold escalate to high predictions for the metal.

Monday, April 9, 2012

Pension funds dropping as companies unable to pay into retirement accounts

The Financial Time (FT) today came out with a new report on how underfunded business and company pensions are for many workers they have contracts with.  With sales and profit margins falling dramatically during the past 2 years, not only have major companies cut the amount they donate towards these funds, but many small businesses have stopped funding plans altogether.

The shortfall in US labor union pension funds is huge and growing rapidly. The latest data, from 2009, from the PBGC showed that these multi-employer plans were 48% underfunded with $331bn of assets to support $686bn of liabilities - and it has hardly been a good ride for those asset values since then. Critically, as the FT notes today, recent changes by FASB has enabled Credit Suisse to estimate shortfalls more accurately and it paints an ugly picture. - Zerohedge



Data courtesy of FT

To date, the government and corporate world have been able to hold off anger in the public sphere, even as the continuing high unemployment rates have not been addressed since 2008.  However, should the stock markets fall, and pension and retirement accounts continue to drop to dangerous levels, then the reaction by unions and workers expecting this money to survive after their working years will make the Wisconsin union battle seem like a playground shoving match.

Friday, March 23, 2012

CIties defaults could accelerate as Municipal Bonds stand on edge of collapse

On March 22nd, the End of the American Dream blog came out with 10 indicators that cities around the country could begin defaulting in greater numbers as both the pension funds and municipal bonds outstanding could be on the verge of a collapse.



Chart courtesy of the Wall Street Journal

#1 Moody's has downgraded Detroit's debt again.
#2 The city of Indianapolis is facing an unprecedented 75 million dollar budget deficit in 2012. City officials are warning that there may soon not be enough money to keep the streetlights on.

#3 Suffolk County in New York has declared a "fiscal emergency" after discovering that it is projected to take on a total of more than 500 million dollars of additional debt by the end of 2013.

#4 The city of Trenton, New Jersey is so broke that it has put off buying more toilet paper for city buildings. At last report, there were a total of 15 rolls remaining and after that those that use city restrooms will be on their own.

#5 Some cities are slashing expenses dramatically in an attempt to stay afloat.

#6 In New York, state officials are deeply concerned that city and local governments are paying their pension obligations by borrowing from the state pension fund. This is essentially like making your minimum monthly payment on a credit card by borrowing more money on that same credit card....

#7 Pension problems are catching up with a lot of cities all over the nation. For example, CBS News reported recently that the city of Central Falls, Rh0de Island has been forced to declare bankruptcy because of pension woes....

#8 Last November, Jefferson County, Alabama filed for the largest municipal bankruptcy in U.S. history. At the time, they had accumulated a total of approximately 4.2 billion dollars of debt.

#9 Several other U.S. large cities have defaulted on their debts in early 2012

#10 In all, there have been 21 municipal defaults so far in 2012. The grand total of those defaults comes to 978 million dollars.


On top this these indicators listed, interest rates appear ready to move up outside the Fed's influence to control the lending rates.  Rates crossed 4% for the first time in several months in March, and the rate of foreclosures is now increasing after legal and legislative changes were made to the contract ownership barriers between banks and homeowners.

Lower tax receipts, coupled with rising inflation and the inability of cities to borrow money through bond auctions will accelaerate the collapse of many municipalities, and lead to greater unrest as city pension funds continue to shrink for retirees.