Friday, Feb 01, 2013

Struggling oldies

CityAM: UK tax takes hit as QE increases pension deficits

Apart from the obvious moral of not voting Labour for a decade before your own retirement, the staggering pension deficit surprise continues apace. I liked this idea by the pensions funds....it must be them right..." suggest the Bank of England use QE money to buy overvalued PFI and infrastructure assets from banks then sell them to pension funds at a lower price, unburdening banks and giving pension funds a good long-term asset in one action." Unfortunately unless the BoE discovers how to make fake teeth gum glue digitally, there doesn't seem to be much room to manoeuvre.

Posted by stillthinking @ 04:06 AM (1448 views) Add Comment

11 Comments

1. libertas said...

Had government allowed interest rates to rise, naturally, in 2008 and indeed earlier, pensions would now be in surplus.

Friday, February 1, 2013 08:52AM Report Comment
 

2. libertas said...

I think, with the rhetoric changing, they are priming the public for the inevitable interest rate rises. Watch home owners to get shunned by the media, with them lauding the over-flowing pension pots as interest rates rise.

Friday, February 1, 2013 08:53AM Report Comment
 

3. khards said...

@2 libertas, UK interest rates will not rise independently of Europe and the UK.

Friday, February 1, 2013 10:25AM Report Comment
 

4. mark wadsworth said...

They are mentally ill.

The government doesn't have any "QE money" which it can spend.

The government OWES "QE money" to the banks.

Friday, February 1, 2013 12:07PM Report Comment
 

5. letthemfall said...

What's this got to do with Labour? The PIC is another of these parasitic companies who "advise" companies with pension schemes on how to advantage themselves at the expense of the pension holders. Their latest wheeze? Bail out the banks yet more. You can see where their bread and butter lies.

Friday, February 1, 2013 12:17PM Report Comment
 

6. mr g said...

Not necessarily all “oldies” who will struggle, I would have thought that people in their 20’s 30’s and 40’s have as much reason for concern.

Friday, February 1, 2013 02:40PM Report Comment
 

7. libertas said...

@Khards, the Swiss peg to the Euro cracked a month or so ago. Sure, they will attempt to keep them in tandem but, eventually the market will rip Countries apart.

Friday, February 1, 2013 02:47PM Report Comment
 

8. stillthinking said...

Umm... this suggestion is to print money to directly give to the banks by overpaying for assets. And then, sell to the pension funds at below market value (whatever that is...) so they can make a gain ..!..!..
This proposal is being sounded out through city AM . This is not about interest rates. Which part of this is about interest rates? Nothing is. This is a shameless suggestion about handing out fresh printed cash.

Friday, February 1, 2013 04:14PM Report Comment
 

9. libertas said...

Stillthinking, Pensions, dominated by Bond investment, get paid out with INTEREST RATES on bonds.

QE reduces Bond interest rates, reducing pension income.

It is ALL ABOUT the interest rate.

Saturday, February 2, 2013 10:39AM Report Comment
 

10. libertas said...

Incidentally, this is why euthanasia and the Liverpool Care Pathway are being pushed right now, at this moment in time.

Like, BBC putting on a comedy about euthanasia.

As I have said many times, fascism and socialism destroy productivity and the economy cannot sustain so many people. At this point government ALWAYS revert to genocide. Hundreds of thousands of elderly and now even sick babies have been murdered before their time through the "care"death pathway.

Saturday, February 2, 2013 10:46AM Report Comment
 

11. libertas said...

If the economy gets much worse, globally, expect another world war, conscription and mass death. At that point, move to Swizerland, if you can make it.

Saturday, February 2, 2013 10:49AM Report Comment
 

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