Pensions
Let’s start with a few paragraphs that appeared in the Wall Street Journal. Carl Demaio writes this week:
Consider California, where just 10 individual
pensioners will cash $50 million in pension checks from state and local
governments over the next 25 years. Already some 30,000 retired California
government employees pull in pensions higher than $100,000 a year. One retired
librarian in San Diego receives a $234,000 annual pension. Beach lifeguards in
Orange County are retiring at age 51 with $108,000 annual pensions plus
health-care benefits.
Note that those benefits are cost-of-living-adjusted. But the problem is not
just in California; it is nationwide.John Mauldin, Thoughts from the Frontline - How Not to Run a Pension
Current Governments both in Europe or in the USA can't say we don't pay. That is not an option because it affects many people. Printing is the way to go. To change the entitlements we would need a revolution and the scraping of all the existing contracts. I don't see this happening.
Money printing and eventually rampant inflation is the way. If you have some money (Savings) one day you can't have deposits or cash at hand, you have to buy stuff/Physical Things
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