Posted Oct 6, 2013 by Martin Armstrong
The crisis we face in Pension is indicative of the entire problem with Socialism – it just does not work. What is unfolding now is quite simple. Pensions present a very tempting source of funds for cash-strapped governments who desperately need to fill in holes in their overall budgets,
Governments have borrowed every year with no intent of paying anything back at any time. The debt markets have simply become their welfare checks. But they have also been manipulating interest rates keeping them so suppressed to solver their own budget crisis, that they have totally screwed the Pension funds setting in motion the next great crisis – massive default of the future. The entire way of life people thought they worked for is coming to an end and this is not be something that goes quietly into the night.
Russia has ordered all pension funds must be now overseen through the central bank. Many regard this as the first step in the direction of the coming nationalization of pensions that we will see even in the USA.