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Pensions - Steve - 10-13-2022
Global debt markets are breaking - pensions and currencies facing failure
The global debt market is orders of magnitude larger than the stock market, and debt instruments across the globe have nearly reached the breaking point due to the Fed's steady increase in interest rates this year.
In Tokyo, the Bank of Japan has been unable to find a single buyer of 10-year Japanese Government Bonds (JGB) for the last three days.
The governor of the Bank of England, Andrew Bailey, just warned investors that they had three days to liquidate debt holdings before the BoE pulls out and stops buying up all the failing gilts (bonds) that fund pensions in the UK.
Debt instruments, pensions and bonds are beginning to break all across the world. We need to watch this very carefully and avoid getting wiped out as the house of cards falls.
https://www.brighteon.com/d76dd2ca-0c4c-4158-b925-8672a7c2d3d6
RE: Pensions - awakened53 - 10-15-2022
Tighten Your Belt: You are in for a Very Bumpy Ride
Regular readers of my books and these pages will understand that the financial chaos engulfing the world, and threatening to send the UK back beyond the recession, into a deep, dark, financial depression, and back to the economic dark ages, will know that nothing that is happening is happening by accident.
This, in case you are in any doubt, is the beginning of the Great Recession, the New Normal, which the conspirators have been boasting about for years.
(Laughably, there are some ignorant collaborators who claim that the ‘Great Recession’ is another conspiracy theory. If only they were right.)
The coming financial chaos was apparent years ago.
When I wrote my book Stuffed!, back in 2012, I pointed out that: ‘The Government can no longer afford to pay the pensions it has promised to public sector workers. Nor can the Government afford to pay the State pension. And, just to make things worse, Government and EU policies have destroyed the attractiveness of private pensions. In a generation’s time our streets will be packed with geriatric, English beggars pleading to be given enough money to buy a little food.’
And now we’re very close to that.
The current UK squabble between Truss’s apparently chaotic and spendthrift Government and the apparently incompetent Bank of England is setting us all up for a perfect financial Armageddon.
The Bank of England says that our financial problems are caused by the Government’s spend, spend, spend policies (which is true). The Government says the Bank of England should have raised interest rates faster (which is also true).
Meanwhile, as British pension funds collapse, millions who were looking forward to a decent retirement can now look forward to penury, poverty and the need to carry on working until they drop. And the Bank’s Governor is in Washington with the Chancellor. I’m sure they are having a wonderful time. Might I suggest that they stay there?
Read More: Tighten Your Belt: You are in for a Very Bumpy Ride
RE: Pensions - awakened53 - 10-18-2022
Truss Mugged Millions of Pensioners Who Will Now Live and Die in Abject Poverty
The obscenely reckless mini budget introduced by Kwarteng, the most idiotic buffoon in British political history (aka Twat of the current Century and the last one too) was not dreamt up without the approval of that woman Truss.
And even though the budget has been largely reversed (except, apparently, for lifting the cap on bankers’ bonuses) the damage has been done.
It is customary for pension advisors to recommend to those in their 50s or 60s that they put their nest egg into Government gilts.
Traditionally, Government gilts are the safest investments anyone can buy. Rock solid. Secure. Unlike shares, the money is safe. That’s why pension funds are put into gilts. It’s why investment advisors recommend them to careful savers who don’t like taking risks.
Truss’s budget (and let’s be honest – Truss was standing behind Kwarteng and working his lips) has destroyed the value of Government gilts. Many gilt funds have dropped 30-50%.
What that means in practice is that pensions could have halved in value.
The 60-year-old who has worked all their life, saved cautiously, and hoped for a privately held pension of, say, £10,000 a year, to supplement the miserable State pension, will now, instead be lucky to get £5,000 a year.
That’s the difference between a week’s holiday in Skegness and a day out on the bus. It’s the difference between three meals a day and two meals a day, if you’re lucky. It’s the difference between being chilly and being freezing cold in winter.
Are the gilts going back up to the price they were?
Probably not. The situation was made infinitely worse by reckless techniques used by pension companies who fiddled around with liability-driven strategies (LDIs) and inflation rate hedges and turned an incredibly safe investment into an each way bet on a three legged horse in the 3.30 at Newbury.
Read More: Truss Mugged Millions of Pensioners Who Will Now Live and Die in Abject Poverty