Go Back   David Icke's Official Forums > Main Forums > Today's News > Finance

Reply
 
Thread Tools
Old 15-04-2016, 08:59 AM   #1
jikwan
Inactive
 
Join Date: Sep 2010
Location: between nothingness and eternity
Posts: 3,127
Likes: 791 (503 Posts)
Default US faces ‘disastrous’ $3.4tn pension funding hole

ive been saying it for years already: y'all think youll be drawing pensions when you get old
no you will not. all govts are instructed to bankrupt themselves incl pension funds



According to academic research shared exclusively with FTfm, the collective funding shortfall of US public pension funds is three times larger than official figures showed, and is getting bigger.


Devin Nunes, a US Republican congressman, said: “It has been clear for years that many cities and states are critically underfunding their pension programmes and hiding the fiscal holes with accounting tricks.”

Mr Nunes, who put forward a bill to the House of Representatives last month to overhaul how public pension plans report their figures, added: “When these pension funds go insolvent, they will create problems so disastrous that the fund officials assume the federal government will have to bail them out.”

Large pension shortfalls have already played a role in driving several US cities, including Detroit in Michigan and San Bernardino in California, to file for bankruptcy. The fear is other cities will soon become insolvent due to the size of their pension deficits.

Joshua Rauh, a senior fellow at the Hoover Institution, a think-tank, and professor of finance at the Stanford Graduate School of Business, who carried out the study, said: “The pension problems are threatening to consume state and local budgets in the absence of some major changes.

“It is quite likely that over a five to 10-year horizon we are going to see more bankruptcies of cities where the unfunded pension liabilities will play a large role.”

The Stanford study found that the states of Illinois, Arizona, Ohio and Nevada, and the cities of Chicago, Dallas, Houston and El Paso have the largest pension holes compared with their own revenues.

In order to deal with the large funding shortfall, many cities and states will have to increase their contributions to their pension funds, either by raising taxes or cutting spending on vital services.

Olivia Mitchell, a professor at the Wharton School at the University of Pennsylvania, told FTfm last month that US public pension plans face “grave difficulties”.

“I do believe that US cities and towns will continue to suffer, and there will be additional bankruptcies following the examples of Detroit,” she said.

Currently, states and local governments contribute 7.3 per cent of revenues to public pension plans, but this would need to increase to an average of 17.5 per cent of revenues to stop any further rises in the funding gap, the research said.

Several cities and states, including California, Illinois, New Jersey, Chicago and Austin, would need to put at least 20 per cent of their revenues into their pension plans to prevent a rise in their deficits, while Nevada would have to contribute almost 40 per cent.

Mr Rauh’s study claims the “true extent” of funding problems in US public pension system has been obscured because plans calculate both their costs and liabilities on the assumption they will achieve returns of between 7 and 8 per cent a year. The academic believes this rate is “wildly optimistic and unlikely to be achieved”.

Mr Rauh said a more realistic return rate, based on US Treasury bond yields, was around 2-3 per cent a year.

However, Hank Kim, executive director at the National Conference on Public Employee Retirement Systems, a trade association for public pension plans in the US, called Mr Rauh’s study a “manipulation of arithmetic”.

“The [public pension] plans are in good shape and are headed to being in even better shape,” he said.

Mr Kim added that public pension funds set their return targets at 7.5 per cent because that is what they have been able to achieve historically.

US public pensions recorded an average annual return of 7.3 per cent in the 10 years to the end of June 2014, according to Cliffwater, an investment consultancy.

“Over a long-term trend, that 7.5 per cent return rate is absolutely feasible,” he said.

http://www.ft.com/intl/cms/s/0/c9966...#axzz45sqDAgBZ
jikwan is offline   Reply With Quote
Old 14-09-2016, 05:24 AM   #2
motleyhoo
Senior Member
 
Join Date: Mar 2009
Location: North Carolina
Posts: 6,987
Likes: 787 (355 Posts)
Default

All pension funds are ponzi schemes. They only work if there is enough continuous inflation to give them 6%+ greater returns that beat the inflation. This is not sustainable and never was. Add to that the near 0% interest rates and all the pension funds are falling woefully behind.

.

.
__________________
"Reason obeys itself; and ignorance submits to whatever is dictated to it ... It is not a field of a few acres of ground, but a cause, that we are defending, and whether we defeat the enemy in one battle, or by degrees, the consequences will be the same." -- Thomas Paine
motleyhoo is offline   Reply With Quote
Old 14-09-2016, 05:44 AM   #3
jikwan
Inactive
 
Join Date: Sep 2010
Location: between nothingness and eternity
Posts: 3,127
Likes: 791 (503 Posts)
Default

when govts declare themselves bankrupt the pension
fund will be dry also----if there still some in it the
public will demand it be used on them and forget
about the old guys

interesting times
jikwan is offline   Reply With Quote
Old 19-09-2016, 04:15 AM   #4
the tealady
Forum Advisor
 
the tealady's Avatar
 
Join Date: Jun 2009
Location: Down by the sea
Posts: 18,965
Likes: 4,647 (2,475 Posts)
Default

Well if they stop funding the Pentagon, Israel and their secret operations and got a decent POTUS all would be well.
__________________
Unlike a lot of other people, David walks the talk. Be careful who you trust in this alternative media and research.

Please don't feed the trolls.

When I LIKE a post, it does not always mean I agree, it can also just mean I think a valid point has been made.
the tealady is offline   Reply With Quote
Old 19-09-2016, 11:18 PM   #5
bendoon
Senior Member
 
Join Date: Dec 2007
Posts: 12,954
Likes: 1,346 (693 Posts)
Default

At least the US has something in the State pension fund, the UK doesn't have one at all, pensions are paid out of taxes.

US Social Security fund, largest in world (by a long way);

http://www.swfinstitute.org/fund-rankings/
__________________
The Beast from the sea with 7 heads, 10 horns and 10 crowns has been wounded to one of the heads, the 2 horned beast from the earth commanded us to worship the 7 headed beast but on 23rd June 2016 we said no.


Don't forget, everything is foretold you just need to have the eyes to see and the ears to hear.
bendoon is offline   Reply With Quote
Old 23-09-2016, 01:53 PM   #6
wendypeace27
Senior Member
 
Join Date: Aug 2013
Posts: 5,505
Likes: 708 (452 Posts)
Default

Quote:
Originally Posted by the tealady View Post
Well if they stop funding the Pentagon, Israel and their secret operations and got a decent POTUS all would be well.
They think when everything crashes here that they wont be held accountable. hahahahahahahahaha So, then they can spend whatever they want.

We are being set up to be a 3rd world country, and TPTB think they can control us like herding sheep. Only that we are going to rebuild ourselves without them.
__________________
Peace, Love, Sage, and Orion's Belt!!
wendypeace27 is offline   Reply With Quote
Old 23-09-2016, 02:11 PM   #7
silent revolution
Senior Member
 
Join Date: Jan 2013
Location: The vale of Tamesis. Love is life and life is love.
Posts: 5,440
Likes: 1,059 (499 Posts)
Default

Quote:
Originally Posted by bendoon View Post
At least the US has something in the State pension fund, the UK doesn't have one at all, pensions are paid out of taxes.

US Social Security fund, largest in world (by a long way);

http://www.swfinstitute.org/fund-rankings/
Pensions are supposed to be paid out of the National Insurance we all pay, the same as all welfare benefits, war pensions and the National Health Service. That's the whole reason we pay national insurance (or have it paid for us (from national insurance funds) if on benefits).

Peace, love, harmony and wisdom friend
__________________
.................................-~*'.It's Only a Dream.'*.~-.

Last edited by silent revolution; 23-09-2016 at 02:12 PM.
silent revolution is offline   Reply With Quote
Old 23-09-2016, 11:48 PM   #8
bendoon
Senior Member
 
Join Date: Dec 2007
Posts: 12,954
Likes: 1,346 (693 Posts)
Default

National Insurance in the UK is a tax, just like VAT and income tax, it doesn't go into a special fund that is ear marked for certain expenditure, it all goes into the same pot that the Government spends. Some countries eg Japan, Norway, USA ( and probably a lot more) put the money into a separate fund that is invested in the same way that a private company pension fund is invested, the idea being that the profits on the investment plus further contributions will make the scheme self financing.
__________________
The Beast from the sea with 7 heads, 10 horns and 10 crowns has been wounded to one of the heads, the 2 horned beast from the earth commanded us to worship the 7 headed beast but on 23rd June 2016 we said no.


Don't forget, everything is foretold you just need to have the eyes to see and the ears to hear.

Last edited by bendoon; 23-09-2016 at 11:51 PM.
bendoon is offline   Reply With Quote
Old 24-09-2016, 12:06 AM   #9
the tealady
Forum Advisor
 
the tealady's Avatar
 
Join Date: Jun 2009
Location: Down by the sea
Posts: 18,965
Likes: 4,647 (2,475 Posts)
Default

Same in Oz where there is now a raging campaign of Orwellian proportions claiming that people dont want to retire at 65 because they are living so much longer and want to stay in the workforce.
People are being forced to work longer to accumumate enough superannuation. Ive been forced to retire at 57 through severe arthritis and I havent even started tbe benefit process yet. I already know it will be a nightmare but I will have to.
In my shop, most of the customers are over 60 and they are appalled at getting to the retirement age and then getting the bad news. My husband has a foot that has practically fused from arthritis, stenosis of the spine and a fused neck vertebrae and when he asked our doctor about disability benefits he was told they won't listen to him, they have their own doctors who do the assessments, so its a lottery.
__________________
Unlike a lot of other people, David walks the talk. Be careful who you trust in this alternative media and research.

Please don't feed the trolls.

When I LIKE a post, it does not always mean I agree, it can also just mean I think a valid point has been made.
the tealady is offline   Reply With Quote
Reply

Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump


All times are GMT. The time now is 11:22 PM.


Shoutbox provided by vBShout (Lite) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.