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97% Of Spanish Social Security Pension Fund In Domestic Bonds

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http://www.zerohedge.com/news/2013-04-04/97-spanish-social-security-pension-fund-domestic-bonds

'In January, we discussed the stunning fact that Spain's social security pension fund was 90% allocated to Spanish sovereign debt. The latest data shows that this farcical epic reach-around has become even more ridiculous as, according to Bloomberg BusinessWeek, the fund's holdings are now 97% weighted to sovereign bonds. The fund purchased about EUR20bn of Spanish debt last year, while it sold EUR4.6bn of French, Dutch and German bonds. More than 70 percent of the purchases took place in the second half of the year, after Draghi's 'promise' to "do whatever it takes" moment.'

you gotta love it.

luckily the UK doesn't have a social security pension fund.

You don't want to be a saver when the financial system implodes..

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I wonder how many highly public sector jobs exist just to manage this financial circle-jerk.

Apparently theyve been selling foreign investments to buy spanish bonds because they dont have a central bank to QE themselves, so are having to throw everything at, er, buying spanish bonds...

Looks more like an act of desperation to me.

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I wonder how much private/gov't pension cash the UK has tied up in the various EU failed states pension funds?

Didnt Osborne cover this already, said something like 'we've never lost money yet'

Im sure Madoffs investors said the same kind of thing a week before his thing blew up.

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Apparently theyve been selling foreign investments to buy spanish bonds because they dont have a central bank to QE themselves, so are having to throw everything at, er, buying spanish bonds...

Yep.

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Whats the problem? Im sure spanish demographic prospects and growth rates are just fine over the next 50 years... :lol:

There's an article on that subject at Fistful of Euros.

Edward Hugh is always arguing that the link between demographics, migration and GDP is underrated - if not totally ignored - by economists.

One of the less commented features of Spain’s boom is the way the arrival of economic migrants fuelled a significant part of GDP growth. The country’s population grew by more than six million, raising employment levels in both the formal and the informal economies.

The balance has now turned negative. According to data from the National Statistics Office, the net outflow was 20,000 a month and accelerating. That is to say a quarter of a million a year, or a million every four years. And the final numbers will almost certainly be much larger.

So a country which already doesn’t have enough people working to pay for its pension system now faces having less and less as time goes by, while the number of pensioners looking to claim will only grow and grow.

This phenomenon is of course true of Portugal, Greece and Italy too.

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  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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