Because state pension administrators have made insufficient contributions and unrealistic investment assumptions,
pension debt now consumes over a third of school payrolls.
Not exact matches
Moreover, the company keeps spending money it doesn't have on acquisitions, dividends, and buybacks, so it
now sits with almost no excess cash and $ 660 million (68 % of market cap) in combined
debt and underfunded
pension liabilities.
Industrial capitalism has passed through a series of stages of finance capitalism, from
Pension - Fund capitalism via Globalized Dollarization and the Bubble Economy to the Negative Equity stage, foreclosure time,
debt deflation, and austerity — and
now what looks like
debt peonage in Europe, above all for the PIIGS: Portugal, Ireland, Italy, Greece and Spain.
Overall
debt has
now passed # 1 trillion — without counting the liabilities associated with public sector
pensions or the Private Finance Initiative.
Two of the reasons for the proliferation of the «Shadow Government» are so that the State does not appear to be the entity that acquires additional
debt, and to provide State
pensions for people not in the classified Civil Service who theoretically, (although much
now is very fixed, going back to Mario Cuomo and continued by Pataki, Spitzer and Paterson) must face non-partisan Merit and Fitness competition for appointments and promotions.
«We have signed an agreement with the big
pension funds that will see them investing British savings in British infrastructure, building an economy based
now on savings and investment rather than on
debt.»
Cuomo proposed allowing municipalities to cut their
pension payments
now and make up the difference later, which Ravitch said puts cities deeper in
debt.
An illegal war Uncontrolled immigration # billions leaking every year via new quangos Students (in England)
now have to mortgage their futures to get to University 24 hour binge drinking breakdown of the family vast increase in licensed gambling External
debt quadrupled to $ 11 Trillion making us the second largest debtor nation in the world after the USA at $ 12 Trillion (we may overtake them later this year)
Pension funds pillaged for # 5Bn a year Gold reserves sold for a pittance Children leaving school unable to read or write NHS a basket case - 1 in 10 leave hospital sicker than when they went in.
Pension debt alone
now eats up to about 10 percent of the average teacher's compensation.
There is considerable and growing evidence that 1) at least half of teachers today will not qualify for even a minimum state
pension benefit; 2) state
pension funds
now carry roughly $ 500 billion in
debt and are eating up larger and larger shares of teacher compensation; 3) most teachers would have a more valuable retirement if they participated in a traditional 401k plan; and, 4) today's teachers, to their own financial detriment, subsidize the
pension of currently retired teachers.
And as a result many
pension funds
now carry billions of dollars in unfunded liabilities forcing them to allocate more money to pay off their
debts.
Meanwhile,
pension debt snowballed and Chicago's taxpayers and teachers, as well as CPS, are
now eating the costs.
Now, the
debt - to - GDP graph above doesn't take into account
pension and entitlement underfunding / non-funding.
In these hard economic times, too many Metro Vancouver, Fraser Valley, Lower Mainland people, and British Columbians who lived free of financial crisis until
now, find themselves facing the shame of
debt they can not repay after taking out too much easy credit just to live, pay for necessities such as housing, food, medicine, etc., a reflection of our ever growing senior and minimum wage population funded with insufficient
pensions and facing rising living costs without corresponding increase in earnings.
Now, I must point out: i) Independent News & Media is currently in the throes of a
debt &
pension restructuring — this could possibly improve things, but I'm not convinced it's going to be sufficient, and / or dilution for existing shareholders might be so bad ultimately the shares might as well be worthless, and ii) I still say my zero valuation for Continental Farmers Group was about right (God, just look at cash,
debt & cashflow in their latest results), but shareholders are v fortunately getting bailed out by the Saudis at GBP 36p per share.
If the
pension will do the trick by itself, you may want to divert some of the RRSP contribution money to the mortgage / LOC
now in order to free up monthly cashflow sooner once the
debt is paid off.
As I mentioned above, long term
debt can be a good thing right
now, but also pay close attention to
pension liabilities.