Are Collapsing Pensions "About To Bring Hell To America"?

Zero Hedge ^ | March 16, 2017 | Authored by Mac Slavo via SHTFplan.com,

[Perseverando]

The toxic dollar is bringing hell in a handbasket.

Along with the student loan debt bubble and other major financial factors, the looming pensions crisis is bound to be the death of us all.

Because it’s based on a future promise to pay, it has long been a benefit dangled to solve strikes and union disputes – because, in the end, it is just more debt, whether private or public.

With tens of trillions in unfunded liabilities, the weight of an avalanche remains dangling over our heads. An aging population is cashing in on needed retirement benefits while the younger generations must support multiples that are unsustainable financially.

Somewhere between the retiree that needs clothing, food and lodging, and the bankruptcy of cities and state governments is the makings of the next economic crisis.

via AgainstCronyCapitalism.org:

This is one of those things that few will pay attention to until it’s a 5 alarm fire. Then the policymakers will run around with their hands in the air saying they didn’t see it coming.

Of course they did. But addressing the problem is hard and will make people unhappy in the short term.

This blog pointed out the sad, and quiet fact that entities like the government of South Carolina are deep in debt over pensions. Everywhere there are failing social systems.

And somewhere, the rubber is going to met the road, and people are going to get hurt.

As SHTF previously reported:

In 2014 a new Federal law made it possible for pension funds to cut benefits for their recipients.

[I]n October of [2015] the canary in the coal mine fell over and died when Illinois announced that the State was posting pension payments because it ran out of money.

[1Old Pro]

With tens of trillions in unfunded liabilities

Public/Government defined benefit plans were built on lies and fraud. Those public officials and union leaders that made these impossible promises in return for votes should be prosecuted for fraud.

[GraceG]

The last 20 years had children moving back into the houses of their parents, the next 20 years will be parents moving into the houses of their more successful children.

[DannyTN]

Without something that states the scope of the problem and how it's worse than ever, I don't think it's an issue. For several reasons:

• Companies shifted to 401k's away from pensions years ago.
• Probably many municipalities have also.
• The stock market is booming.
• We've got the most business friendly administration in government since Reagan...possibly more friendly than that.
• The national debt has started coming down.

[DannyTN]

Without something that states the scope of the problem and how it's worse than ever, I don't think it's an issue. For several reasons:

• Companies shifted to 401k's away from pensions years ago.
• Probably many municipalities have also.
• The stock market is booming.
• We've got the most business friendly administration in government since Reagan...possibly more friendly than that.
• The national debt has started coming down.

[GraceG]

Forgot to add, the leftest bungling of the economy will inadvertently bring back the “Traditional multi-generational Household” because they have destroy prosperity so much and promised so much they KNEW they could not deliver.

[DannyTN]

Without something that states the scope of the problem and how it's worse than ever, I don't think it's an issue. For several reasons:

• Companies shifted to 401k's away from pensions years ago.
• Probably many municipalities have also.
• The stock market is booming.
• We've got the most business friendly administration in government since Reagan...possibly more friendly than that.
• The national debt has started coming down.

[cherry]

the govt class never looses....it’s only we mere private industry workers....

[Alberta's Child]

I've said for a long time that there's a big reason why this country is hell-bent on importing people from all over the planet:

We need at least two generations of fools to pay these liabilities.

[Opinionated Blowhard]

Not sure why they are lumping private and public pensions together. Under ERISA, private pension plans need to be fully funded based on certain current value calculations so private pensions can’t play the games that public pensions can play. The trustees of private pensions could be personally liable if they did.

Public pensions, on the other hand, are a disaster. They can play games by inflating the value of assets based on artificially high projections of short and long term market returns. California has been doing it for years. Their entire system is in a lot of trouble. But, that is a state-by-state issue. As long as the Feds resist bailing out states, you won’t get saddled with another state’s pension liability. And with Republicans in charge, I doubt they will have some national pension bailout bill on the agenda.

[Chaguito]

Nothing wrong with that, as long as I don’t have to subsidize their rent.

[bigbob]

Some pension plans are much better funded than others.

[laplata]

“Forgot to add, the leftest bungling of the economy will inadvertently bring back the “Traditional multi-generational Household” because they have destroy prosperity so much and promised so much they KNEW they could not deliver”.

And the culprits will spin it into “Trumps Fault”. And the idiots will believe it.

[SkyPilot]

The stock market is booming.

Until it isn't. The next correction (or crash) will make this crisis nuclear.

[blam]

Watch real close. Democrats and RINO's will try to get federal government bailouts with your tax money....no matter that you may not have a pension, you'll pay for the other guy to have one.

BTW, Lois Lerner's $102,600 a year government pension is unaffected.

[notdownwidems]

the next 20 years will be parents moving into the houses of their more successful children.

Already happened! My mother and both my wife's parents had been living with us since 2008. My mother and her father are both gone now, only her mother left with us; I don't see this trend going away anytime soon though, if anything it will become more pronounced as this pension crisis destroys what is left of society.

[Seruzawa]

Welcome to ZeroHedge. Doomcry Central.

[DannyTN]

LOL, you’re not kidding. ZeroHedge has been forecasting doom forever.

[SkyPilot]

Zerohedge is a conveyor of doom, however, they report many legitimate facts regarding the underlying rotten economic fundamentals of the market and the global economy. China, France, Greece, Italy, Japan, and many other nations economies have immense debt problems. China in particular has several bubbles that could burst at any time. The EU is teetering on a financial edge. Yesterday, the US just hit its ceiling, again. We are technically broke, and our debt problem is only eclipsed in scope by our unfunded liabilities WMD.

After the crisis of 2008, the Central Banks have been creating money out of thin air, so that the potential for financial meltdown is now much greater, not less.

The current market euphoria is beyond troubling. It may not crash tomorrow, however, those who are honest with themselves know it is a house of straw. All it will take is a stiff wind to blow it down. When? Who knows. But I am not going to whistle through the graveyard.

[minnesota_bound]

I say we have all that pension money shifted over to the state and federal gov’t.
They will wisely know what to do with all that money.....