The Brits are a bit worse off and farther along in the destruction than USA, so you can watch what happens in the UK to see what will be true for USA very soon.
Keynesian economics is what got us into this mess, and the powers that be are ordering up more of the same. The Austrian economists predicted this mess, for they have the analytical tools to demonstrate how and why, in advance. (A fellow once cancelled a class registration with me since I subscribed to Austrian economics.)
Here is what is happening to pensions in the UK.
That is pure Austrian analysis.
A man with £100,000 of pension savings in July 2008 would have been able to buy an annual fixed income of £7,855 for life. But his younger brother, who is retiring now, would only be able to secure an income of £5,743 – a 27 per cent cut.
Yes, of course. That is how it is done.
Donna Hopton of financial advice service Cherryfind.co.uk said: “This is a dreadful time to be approaching retirement. People have worked hard and saved all their lives and now they are being kicked in the teeth.
No, the system was never sustainable. It isn't personal, just inevitable.
“It is as if no one in power cares what happens to our pensioners and it is the generations coming next who will have to pick up the pieces.
Why should they care? The retirees no longer pay taxes. When a Moslem potentate offered tax-exempt status to a Jewish community, the Jewish leader rejected it. "If we don't pay taxes, in time you will kill us." If you hope for the young to pick up the pieces, visit a "retirement home" and see how many young people are there. Out of sight, out of mind.
I see a pattern: use one analytical system to advance bad policy, and then when the bad policy inevitably fails, use the right analytical system to explain what happened.
The catastrophic blow to pensions has been caused by the Bank of England’s programme of printing more money, known as quantitative easing, or QE.
This gives the people responsible for the damage credibility so they can stay in power after the damage.
Joanne Segars, chief executive of the National Association of Pension Funds, said: “Pension funds are deeper in the red than ever, and this extra dose of QE is only going to make things tougher.
But we already knew this.
Meanwhile, back at the banks...
One reason is the money needs to be siphoned away from retirees is because it is not enough to get bailouts. It is not enough to be tight with the government and get such deals. Banks must also actively steal from retirees by pushing down the rates.
And here we see Spain is charging tourists more to leave their country. Anyone whose plan is to make their pension go farther by retiring overseas will be miserable in time.
Feel free to forward this by email to three of your friends.
Keynesian economics is what got us into this mess, and the powers that be are ordering up more of the same. The Austrian economists predicted this mess, for they have the analytical tools to demonstrate how and why, in advance. (A fellow once cancelled a class registration with me since I subscribed to Austrian economics.)
Here is what is happening to pensions in the UK.
Experts say the Bank of England’s policy of printing money to ease the country through the recession has destroyed thepensions industry and “impoverished more than a million pensioners”.
And yesterday, in a fresh blow, the Bank’s policy makers agreed to more quantitative easing (QE), pumping an extra £50billion into the economy and boosting the money supply to £375billion.
That is pure Austrian analysis.
A man with £100,000 of pension savings in July 2008 would have been able to buy an annual fixed income of £7,855 for life. But his younger brother, who is retiring now, would only be able to secure an income of £5,743 – a 27 per cent cut.
Yes, of course. That is how it is done.
Donna Hopton of financial advice service Cherryfind.co.uk said: “This is a dreadful time to be approaching retirement. People have worked hard and saved all their lives and now they are being kicked in the teeth.
No, the system was never sustainable. It isn't personal, just inevitable.
“It is as if no one in power cares what happens to our pensioners and it is the generations coming next who will have to pick up the pieces.
Why should they care? The retirees no longer pay taxes. When a Moslem potentate offered tax-exempt status to a Jewish community, the Jewish leader rejected it. "If we don't pay taxes, in time you will kill us." If you hope for the young to pick up the pieces, visit a "retirement home" and see how many young people are there. Out of sight, out of mind.
I see a pattern: use one analytical system to advance bad policy, and then when the bad policy inevitably fails, use the right analytical system to explain what happened.
The catastrophic blow to pensions has been caused by the Bank of England’s programme of printing more money, known as quantitative easing, or QE.
This gives the people responsible for the damage credibility so they can stay in power after the damage.
Joanne Segars, chief executive of the National Association of Pension Funds, said: “Pension funds are deeper in the red than ever, and this extra dose of QE is only going to make things tougher.
But we already knew this.
Meanwhile, back at the banks...
One reason is the money needs to be siphoned away from retirees is because it is not enough to get bailouts. It is not enough to be tight with the government and get such deals. Banks must also actively steal from retirees by pushing down the rates.
And here we see Spain is charging tourists more to leave their country. Anyone whose plan is to make their pension go farther by retiring overseas will be miserable in time.
Feel free to forward this by email to three of your friends.
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