Thursday, March 16, 2017

Collapsing Pensions Are "About to Bring Hell to America"

Remember friends, our JOY that we have in this world is NOT the result of our surroundings.  Our surroundings and our personal circumstances can bring us HAPPINESS, but true JOY only comes from our relationship with Jesus Christ and our promise of eternity with Him.

With that being said, this headline showed up today and is a reminder that the current financial condition is shaky.  It's been built on 0% interest rates and printed money.  Out demographics are upside down and we will soon have too many retirees being supported by too few workers paying in to support their pensions, their Social Security, their health care costs and their long-term care needs.

Collapsing Pensions Are “About to Bring Hell to America”

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.

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.

But take a look South Carolina’s government pension plan, which covers roughly 550,000 people — one out of nine state residents — but is a staggering $24.1 billion in the red.

This is not a distant concern, but a system already in crisis.

Younger workers are being asked to do much more to support the pensions of retirees. An analysis by the The Post and Courier of Charleston noted recently that “Government workers and their employers have seen five hikes in their pension plan contributions since 2012, and there’s no end in sight.” (Most now contribute 8.66% of their pay, vs. 6.5% before the changes.) At the same time, the pension fund has been chasing more stocks and alternative investments instead of relying on stable investments like bonds that may be much less volatile but generate only meager returns.

And if that’s not troubling enough, South Carolina’s pension fund is far from alone.


We have said it before and we will say it again....WE HOPE that Jesus returns for His Bride (all Christ followers) BEFORE the entire Western financial system collapses.  And make no mistake, IT WILL COLLAPSE but we have no idea when that will happen.

We know it will collapse because the Bible tells us that the Antichrist will have control of the system that will rise up in its place.

But we should be able to read articles like this to remind us that we shouldn't be clinging to the systems of this world which have no eternal value.  We should constantly be thinking of Jesus words to "Lay up our treasure in heaven where moth and rust will not destroy them."

This will mean different things to different followers...but the intent of His words is clear.


Post a Comment

Subscribe to Post Comments [Atom]

<< Home