Saturday, April 20, 2013

The Pension Crisis & Interest Rate Nightmare

Pension & Debt Crisis
armstrongeconomics.com / By Martin Armstrong / April 19, 2013
We are preparing a very important report on the Global Pension Crisis and the Interest Rate Nightmare that we face. Government will not reform. There will be no HYPERINFLATION because they have no intent upon just printing to meet obligations. That historically has taken place only in governments that are in the process of revolution, as was the case in Germany following the German Communist Revolution of 1918 known as the Wiemar Republic that set the stage for Hitler or Zimbabwe. When we are talking about established governments, they have always turned historically against their own people and confiscated assets. Forced Loans were common during the Middle Ages as well.
So we face a Pension Crisis of two fronts – (1) manipulated interest rates kept far too low that has deprived pension funds of income sending them into the insolvent arena, and (2) government have convinced themselves that if they can confiscate those assets that in the USA are $20 trillion, they can achieve by Forced Loan the funding of the national debt at $17 trillion and they retain power.
How will this resolve itself? How can we prepare for FORCED LOANS? What happens as the Sovereign Debt Crisis unfolds, can interest rates remain artificially low?
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