In the last 48 hours a post was put on this site warning of AI and the roll it will play in accelerating the pension crisis that is coming. Other factors are unfunded liabilities, negative rates on government bonds hurting return projections among others.
There is also the effect on bonds that will happen (a huge holding of pensions) as rates rise, particularly in the USA. Borrowing will cost more in the future or payments based on rates will increase reducing borrowing capacity (increasing cost) or paying down old debt issuance.
Many governments borrowed in USD so when rates rise AND the USD rises these payments will simply cost more and more accelerating an already ugly situation. You can take this scene from the Big Short and apply it to the entire pension and bond market.
Not so much the inner workings (although we now have sub prime auto, student loans and not much has changed in housing gambling) but more so the reaction Mark Baum at about 3:04. This is going to be the reaction on a global scale once critical mass is reached. Some critical mass actions have already happened in the USA.
‘The Dallas police and firefighters pension fund has just 45% of the money it needs to cover benefits. The fund rates to be out of money in 15 years at the current rate of withdrawals.’
One of the biggest issues is simply just denying reality when it stares at you. Humans are exceedingly good at that. Many fund managers will ‘assume returns’ in their calculations that aren’t exactly happening.
If you think the above is isolated, I prepared some headline shots so you can see this is your city pension, provincial, state, federal, private… doesn’t matter.
Sometimes it is that the ‘perfect hell’ needs to come to pass before people wake up either personally or as a group. We are close.
Government is never going to tax big energy now, since they never have in the past. There will be no ‘neutral’ aspect of the coming gas taxes (yes, it won’t stop at Carbon, it will move to Methane and any other gas or element on the periodic table else after that).
Now for some propaganda from carbon tax lovers:
This guy is an assistant ‘professor’ at University of Calgary. These are the people you are paying to teach your kids. Here is how the real world works.
That government is going to introduce a tax that gives people in AB $5000 when their treasury has already been looted, they are in fiscal deficits and the entire energy sector which they are a primary investor/beneficiary is in shambles is complete lunacy. This will likely earn him a promotion to professor soon.
We see the energy sector losses for CALpers. Now let us get a good look at this sector as whole globally:
Courtesy Visual Capitalist (which is a great site to find stuff like this)
Puts it all into perspective doesn’t it? When a government sees commodity prices in the gutter and these companies suffering it will do anything in it’s power to make it all better.
Governments like Canada who have this a top industry for tax generation (for the pre-looted treasury) have bigger problems. Cue all the hurried meetings to get a carbon tax in.
How’s this going to work?
The easiest ways to explain it is: Exactly the opposite of the “$5000 for everyone chart above” and in favour, as always to the carbon traders, those who can accumulate the most credits and the worst polluters.
So here is how the ‘spread’ will be worked and what made Site C, Fracking and Pipelines ‘sustainable’ through carbon taxing.
You will pay for Site C, which is power no one needs at all but is now ‘justified’ by environmental groups like Pembina Institute because it is ‘renewable’ and ‘clean’
Notice how they never talk about how much ‘CO2’ will need to be made in order to pay off the debts of Site C?
If you look at anything on the other end of the spectrum, it is ‘not so clean’
This would cost you all manner of ‘carbon offsets’ for your dirty deeds. No need to worry, you can dump as much fracking chemicals into the ground (which is way safer than CO2 of course) build dams and destroy farmland and lives and put pipelines through any reserve because according to the BC and AB NDP, BC/FED Liberals you have magically become sustainable!
Simply by getting your ‘clean power’ (offsets) from Site C or any other ‘clean’ energy will make your dirty whatever disappear. It is called carbon laundering, kind of like money laundering. (alright not kind of like, exactly like).
‘Neutral Carbon Pricing’ or “Neutral Planetary Destruction” either or.
This is what we are doing instead of dealing with out pension crises.
The very governments that Green Peace,
Pembina Institute and the rest kiss the feet of (in exchange for your tax dollars) who say they are wanting to ‘decrease carbon footprints’ are instead making many footprints of war across the world for that very carbon.
Isn’t it crazy how Trudeau gave BILLIONS to countries like India to ‘fight global warming’ who then turn around and tell us they have authorized $150 BILLION in war spending?
I’d be smiling and shaking hands too if I were them. ‘Thanks for the cash suckers’
And the world leader in Paris for saving the world by blowing it up a bit at a time has done his part also, like all those before them.
So supporting the above is always more important than the below:
Ok, screw you and thank you!
Makes sense, somehow I though using energy was using it, not saving it. At least Green Peace isn’t confused on who they support:
We should all be giving the boot to these warmongers and tuning out their supporters like ‘Smart Prosperity’ and Pembina Institute who is teaming up with SHELL to ‘save the world’ from carbon.
Or else, as they say, we deserve what we get. And that will be… nothing. Or of course, negative nothing. Tell me, from the bottom of your heart, and the top of your mind, you truly believe that these people deserve more of our money? Do you truly believe those that commit ecocide, genocide, debt warfare and all manner of destruction, who are the causes of these problems and the primary profiteers of them are going to turn a new leaf? I know ‘environmental’ groups have clearly shown what they support. But you don’t have to.