Remember the S&L Crisis, well welcome to the Pension Crisis. It is becoming well known behind the curtain that we have a global pension crisis. I first reported this event more than 15 years ago. This at the WEC, we had more than 10 major pension funds attending from around the world. The crisis has been set in motion by the lowering of interest rates with the Crash of 2007. This is why the Fed Char Yellon has been talking about the need to “normalize” interest rates. The crisis in Europe is reaching catastrophic proportions.
In the USA, Senator Sherrod Brown, a Democrat from Ohio, intends to introduce legislation that would allow struggling multiemployer pension funds to borrow from the U.S. Treasury to remain solvent. The proposal being kicked around would create a new office within the Treasury Department called the Pension Rehabilitation Administration (PRA). The funds would come from the sale of Treasury-issued bonds to financial institutions. The pension funds could borrow for 30 years at low-interest rates. One restriction for borrowers is they could not make risky investments. That will mean they must buy government bonds since the government assumes whatever it issues in debt is risk-free, That propaganda is supported by the big accounting firms.