Posted on 09/29/2022 4:07:37 AM PDT by PK1991
The Bank of England took emergency action on Wednesday to avoid a meltdown in the UK pensions sector, unleashing a £65bn bond-buying programme to stem a crisis in government debt markets.
In a nutshell what happened is that a whole lot of UK pensions (technically called liability-driven investment, or LDI funds) failed to appropriately hedge their rate risk - despite it being telegraphed months in advance - and got margin called on billions in gilt securities, forcing them to sell treasuries into a thin market that suddenly froze and turned bidless, creating a "death spiral", and then realizing they were this close to being wiped out, cried to the government to save them from their own incompetence.
It turns out that we were this close from another "Lehman" collapse, only this time most if not all UK pensions were facing total annihilation.
.
Spending more money they don’t have....
Wait, that reminds me of what this dementia-Ridden moronic idiot-filled US Administration is doing.
Weimar Republic and Zimbabwe should have been an historical lesson and warning, but yeah, I digress.
What did THAT meeting look like?
“I say, our money is rapidly losing value. What should we do?”
“Simple, old bean. We’ll make more of it”
“Brilliant!”
I am quite cynical, to the point that I am near almost thinking that all this is purposely being implemented.
None of this is an accident.
All of this is purposed.
I agree 100%, this is completely planned.
No one is this stupid that gets to the level of decsion making to let this happen, even novices are smart enough to see this coming a mile off.
Yes, likely intentional.
Regardless of intentional or just 40 years of power-hungry stupidity, the only way through this is a 10-15 year Depression: high interest rates, low consumption/high savings, 20-30% unemployment, almost zero Fed spending, no wars and overseas troop, minimal Social Security, debt defaults, cheap energy (no wind and solar), commodity-back currency.
But no politician will ever allow this, not even as markets move that way.
Otherwise, with the media to promote and Big-Tech to execute, they will implement The End: digital programmable currency. For the 99%, this will result in tyranny, rationing, and slavery (work requirements).
Like dropping a grenade in your shorts
some of this is hard to believe
a huge risk may be difficult to hedge due to
a limited amount of market liquidityy
(huge meaning huge $$$ or in this case huge LLL)
you cant always get somebody to buy your risk
You’re not alone.
I think you are right. They are just waiting for optimal misery to spring it. When it looks like protesters are taking to the streets to stop the crazy fuel sanctions causing massive inflation blow up the fuel line to take that option away. Probably deep into winter the reset will come.
Its always about the pensions or the 401Ks why they need to do it. We have to give billions to wall street to save your 401k and we will do nothing about the malfeasance afterward and you will be happy to pay for the hyperinflation.
I quite agree. One nation doing that could be straight incompetence. However, basically all Western nations doing it? It’s been amply demonstrated that most politicians have no loyalty to their homeland, so breaking their country’s economy as long as they make bank is fully plausible.
Energy cap limit increases this weekend. More pain for the UK. BOE had to enter the chat because Kwarteng and crew don’t want to cut spending.
And the thing is, with the time compression gained through technology, it would not actually take 10-15 years to resolve the problems if the perpetrators are allowed to go down the tubes, as they deserve. It’s the attempt to keep those zombies alive - as Japan has done - that prolongs the agony. Real people still produce real products with real value and sell them to other real people. The faster government gets out of the way and lets a free economy operate, the faster real valuations are restored.
Ultimately, though, I guess it depends on which zombies have access to the Epstein videos and how they intend to use them to stay solvent.
Financial suicide ensured.
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