‘Their house is on fire’: the pension crisis sweeping the world
“. . . Mr. Jansen, a former manager in the metal industry, has been forced to reappraise his plans after receiving notice from his retirement scheme, one of the Netherland’s biggest industry-sector funds, of plans to cut his pension by up to 10 percent. Understandably, the news has hit like a sledgehammer.
USAGOLD note: The pension crisis finds its roots in very low to negative yields. Though this opinion piece focuses on pensions as ground zero, even those with fairly significant net worth (but not receiving pension benefits) are negatively impacted by the lack of yield on their savings. We recall ECB president Christine Lagarde’s recent statement: “Would we not be in a situation today with much higher unemployment and a far lower growth rate, and isn’t it true that ultimately we have done the right thing to act in favour of jobs and of growth rather than the protection of savers?” . . . . . For central banks, we would gather from that, it is a matter of picking one’s poison.
Repost from 10-19-2019