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 underfunded. Show all posts
Showing posts with label underfunded. Show all posts

Saturday, April 1, 2017

Pension bomb climbs to nearly $2 trillion in a decade as Fed and zero interest rates kill Americans chance of retirement

With the Federal Reserve picking winners in their monetary policies since the 2008 financial crisis, the real losers have been the 10's of million of retirees, and the hundreds of millions of Americans who have lost purchasing power thanks to stagnant wages and rising inflation.  And it is directly on the heads of the central bank that the wealth disparity between the 1% and everyone else has taken place.

And because of the massive expansion of credit and debt, and the keeping of interest rates below 1% for over a decade, the nuclear bomb that is America's underfunded retirement scheme is now on the precipice of not only exploding, but also taking down local and state governments with it.

Just how big is the underfunded pension bomb you might ask?  Numbers as of the end of March 2017 now show that the total is just under $2 trillion, and has gone up nearly 10 times since 2007 and just before the financial crash.

Image result for pension bomb
Are millions of Americans about to see the big, juicy pensions that they were counting on to fund their golden years go up in flames in the biggest financial disaster in U.S. history? When Bloomberg published an editorial entitled “Pension Crisis Too Big for Markets to Ignore“, it simply confirmed what a lot of people already knew to be true.  Pension funds all over America are woefully underfunded, and they have been pouring mind boggling amounts of money into very risky investments such as Internet stocks and commercial mortgages.  Just like with subprime mortgages in 2008, this is a crisis that everyone can see coming well in advance, and yet nothing is being done about it. 
On a day to day basis, Americans generally don’t think very much about pensions.  Most of those that have been promised pensions simply have faith that they will be there when they need them. 
Unfortunately, the truth is that pension plans all over the country are severely underfunded, and this has already resulted in local fiascos such as the one that we just witnessed in Dallas. 
But what happened in Dallas is just the very small tip of a very large iceberg.  According to Bloomberg, unfunded pension obligations on a national basis “have risen to $1.9 trillion from $292 billion since 2007″… 
As was the case with the subprime crisis, the writing appears to be on the wall. And yet calamity has yet to strike. How so? Call it the triumvirate of conspirators - the actuaries, accountants and their accomplices in office. Throw in the law of big numbers, very big numbers, and you get to a disaster in a seemingly permanent state of making. Unfunded pension obligations have risen to $1.9 trillion from $292 billion since 2007. 
And of course that $1.9 trillion number is not actually the real number. 
That same Bloomberg article goes on to admit that if honest math was being used that the real number would actually be closer to 6 trillion dollars… 
So why not just flip the switch and require truth and honesty in public pension math? Too many cities and potentially states would buckle under the weight of more realistic assumed rates of return. By some estimates, unfunded liabilities would triple to upwards of $6 trillion if the prevailing yields on Treasuries were used. That would translate into much steeper funding requirements at a time when budgets are already severely constrained. Pockets of the country would face essential public service budgets being slashed to dangerous levels. -  The Economic Collapse

Thursday, March 31, 2016

Ratings agency downgrades Chicago as years of bad fiscal policies with pensions comes home to roost

One of the biggest problems with the majority of politicians coming from the lawyer class is that they have little idea about fiscal responsibility and economics, or any understanding of the consequences that come from promising the world to voters in order to get re-elected.  In fact, Washington is not only known for trying to buy votes from constituents with ever increasing benefit programs, but they are the also the poster child of robbing Peter to pay Paul when it comes to things like stealing from the Social Security Trust to pay for new programs.
Municipalities are not immune to this paradigm as well, with many liberalized cities having chosen the path of egregious fiscal policies which are now coming home to roost as their budgets run deficits that place them on the cusp of insolvency.  And perhaps the biggest culprit in this is the City of Chicago, who after years of making pension promises they couldn’t hope to keep are on the verge of being downgraded to junk status and out of options when it comes to paying out benefits to retirees.
state pensions
Read more on this article here...

Friday, February 19, 2016

Got Karatbars? Pension funds on the brink as Midwestern based one slashes monthly payouts by 50% for 400,000 people

The American dream... where you work for a company or municipality for 30 to 50 years and can retire with the guaranteed promise of a sufficient pension to provide for your golden years.  Unfortunately however, that was last so last century.

Today pension funds in most sectors of industry and public service stand on the brink of insolvency through under-funding by as much as 40%, and this covers pensions managed by unions, private corporations, and municipalities.


Yet who is to blame for this under-funding or mismanagement? Americans can thank none other than Wall Street speculators, corrupt cronyism, and central bank policies for the death of their retirements.

After working 33 years, he’s facing a 55% cut to his pension benefits, a blow which he says will “cripple” his family and imperil the livelihood of his two children, one of whom is in the fourth grade and one of whom is just entering high school.
Dorsey attended a town hall meeting in Kansas City on Tuesday where retirees turned out for a discussion on “massive” pension cuts proposed by the Central States Pension Fund, which covers 400,000 participants, and which will almost certainly go broke within the next decade. 
“A controversial 2014 law allowed the pension to propose [deep] cuts, many of them by half or more, as a way to perhaps save the fund,” The Kansas City Star wrote earlier this week adding that “two much smaller pensions also have sought similar relief under the law, and still more pensions are significantly underfunded.” 
“What’s happening to us is a microcosm of what’s going to happen to the rest of the pensions in the United States,” said Jay Perry, a longtime Teamsters member.
Jay is probably correct. 
Public sector pension funds are grossly underfunded in places like Chicago and Houston, while private sector funds are struggling to deal with rock bottom interest rates, which put pressure on expected returns and thus drive the present value of funds’ liabilities higher. 
Illinois’ pension burden has brought the state to its knees financially speaking and in November, Springfield was forced to miss a $560 million payment to its retirement fund. In the private sector, GM said on Thursday that it will sell 20- and 30-year bonds in order to meet its pension obligations 
"At the end of last year GM's U.S. hourly pension plan was underfunded by $10.4 billion," The New York Times writes. "About $61 billion of the obligations were funded for the plan's roughly 360,000 pensioners." Maybe it's time for tax payers to bail themselves out.  - Zerohedge
We now live in an era where people must take responsibility for their own money, and where trust and reliance upon government, brokers, and retirement planners leads only to broken promises and the potential loss of all you have saved during your years of hard work.  But this is not the end of the world, and thanks to the explosion of the internet and the rise of e-commerce, saving and building a retirement nest egg that is free from market volatility, corrupt fund managers, and central bank policies like zero or negative interest rates is now possible.
And you can do this by not only protecting your retirement, but growing it perpetually with a company called Karatbars.



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

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.