Fund Manager Warns: Entire Pension System Is A Ticking Time Bomb!

Thursday, October 22, 2015
By Paul Martin
October 22, 2015

When the Fed loses control of its ability to keep the stock market propped up – which will happen sooner or later – the pension fund collapse in this country will be the financial equivalent of a nuclear apocalypse.

Submitted by PM Fund Manager Dave Kranzler, Investment Research Dynamics:

Forewarned is forearmed: If you have the ability to cash out of your 401-K plan, you should do so now or be prepared to suffer the consequences of the most corrupted Ponzi scheme in financial market history (notwithstanding the U.S. Treasury debt scheme)

It’s been my belief that one of the primary reasons the Fed is propping up the stock market is to prevent a complete catastrophe in the nation’s pension system – both public and private. The culprit is underfunding. The underfunded of status of every single State pension fund is highly visible. However, through the magic of GAAP accounting and widespread upper management corporate fraud, most private pension funds may be even more underfunded than State funds.

The pension fund “time bombs” are beginning to detonate. While the troubles with the Chicago and Illinois public retirement funds have been widely reported, last week a $17 billion private sector “multi-employer pension pension fund” announced that many of its beneficiaries will soon incur payout cuts as high as 60%. This was not mentioned in the mainstream financial media: Central States Pension Fund payout cuts

This is what happens when payout liabilities “catch up” to an underfunded asset base.

The total size of the retirement asset market is around $18 trillion. Media attention gets focused on State pension funds, nearly all of which are significantly underfunded. In fact, one study showed that as of last year every State fund was underfunded and the cumulative amount of underfunding was $4.7 trillion: LINK. It’s probably safe to assume that corporate/private pensions are underfunded as well by at least that much.

The Rest…HERE

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