Russia Nationalizing Pensions?
The crisis we face in Pension is indicative of the entire problem with Socialism – it just does not work. What is unfolding now is quite simple. Pensions present a very tempting source of funds for cash-strapped governments who desperately need to fill in holes in their overall budgets,
Governments have borrowed every year with no intent of paying anything back at any time. The debt markets have simply become their welfare checks. But they have also been manipulating interest rates keeping them so suppressed to solver their own budget crisis, that they have totally screwed the Pension funds setting in motion the next great crisis – massive default of the future. The entire way of life people thought they worked for is coming to an end and this is not be something that goes quietly into the night.
Russia has ordered all pension funds must be now overseen through the central bank. Many regard this as the first step in the direction of the coming nationalization of pensions that we will see even in the USA.
Washington’s Political Dysfunction
The Political Dysfunction in Washington that has raised the possibility of the once unthinkable: a default on US debt that could potentially trigger financial and economic mayhem as they are claiming, is reflecting the real issues where a new breed of people are refusing to go along with business as usual. So Political Dysfunction may be the name applied these days, but in reality, it is part of the trend that we have been warning is underway. By 2016, we should see a strong performance from 3rd Party players. We are in an up-cycle for 3rd parties as illustrated by our original forecast back in 1996.
The Democrats want the shut down because they have convinced themselves that this is a suicide mission for the Republicans and they hope to have them thrown out of the House by 2014. That may actually be the best result for we would get rid of Boehner who is worse than a joke, and the Democrats will find that they are self-destructing.
Therefore, if Washington start missing payments on its debt thanks to this mud slinging contest, their failure to reach a deal soon to raise the nation’s $16.7 trillion cap on government borrowing may be that Lehman moment in politics that starts to actually bring change..
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