Can the Global Pension Crisis Be Averted? Yes, But Can The Free World Handle Deflation? April 9, 2020,

Unless you subscribe to modern monetary theory, which basically decouples human capital or human production from the value of money then you can clearly see why the markets are screaming for deflation. The entire concept of bitcoin revolves around deflation of the money supply, yes you can be rewarded for getting in early, but riches are made during deflationary periods, what good is money if you don’t know how to spend it or what to spend it on?

Money is a reflection of you and the skills you can bring to the market, even if you’re a money lender it would be stupid to lend your money to a person or a group of people who can’t pay you back with interest and don’t forget that unless you can enforce repayment of the money you lent, the money you’re lending is as good as gone.

The market revolves around efficiency and people who can be efficient with resources, the problem with the idea of inflation to infinity is that, eventually the market catches on that nobody, no entity has to be efficient with money or resources because the Government or the central bank will save them as long as they become too big to fail!

Private Companies being too big to fail are the equivalent to a communist dictatorship

The reason why most countries, even countries who consider themselves democratic are poor, is because their culture, their way of life, their form of governance is too big too fail, or too big to be challenged. What western culture has done, is it’s challenged conventional ways of thinking by minimizing the role of government and allowing the individual to make the choice of what is too big to fail in his/her own life.

Once the government makes the decision that one or a group of companies are too big to fail, then you get more and more private companies who want to join the too big to fail club. One of the best ways to join the too big to fail club in the modern world is to associate your company with Pensions.

Well, this was a good idea until the heads of unions began getting involved in Pensions. Because you see, most of the people in charge of or involved in labour unions, don’t understand the business, a large portion of the public who don’t understand money, assume that economies simply run on their own.

A lot of people think of “the Market” as non-sense, just some scheme or scam rich people created to assure their own profits. People don’t see how money is tied to production and efficiency and this has been the guiding light of a lot of pensions.

Ordinary Joes deciding how pensions funds should be invested, or worse than an ordinary joe investor are people who simply went to school spent little time in the real world of investing their own money and one day landed a high paying job of being a pension manager.

Investing is supposed to be something an individual is involved in, somewhere along the line, people deemed it wise to sign off their individual rights to their own money! The truth is that markets go up and down and in a true market the best part is the deflationary cycle because, during a deflationary cycle, prices come down.

Now, prices for goods coming down is only a problem if you’re overleveraged. Although people in the modern world have been trained to hate the salesmen, in an adult world, a salesman is basically a barterer, money is nothing more than a convenient way of bartering.

Which means if I’ve proven myself as an example to also pay my rent on time, the landlord during a period of deflation, might deem it wise to allow me to deflate the amount of rent I pay to him or her during a deflationary period, no, if the landlord can’t do this, it would be fair to say that maybe the landlord is overleveraged himself.

Or maybe the landlord simply doesn’t want to lower his rent price for their own purposes. But if the landlord kicks me out, and the landlord is overleveraged during a deflationary period, the landlord better hope during an the deflationary period that they can rent out the apartment that is no left vacant, because instead of fewer rental dollars, the landlord might be left with no dollars.

That’s how a market economy works, in n economy in which the government picks winners and losers, the winner is entirely skewed to the entity with the bigger gang, the entity that can challenge the governments power gets to write the laws and right now, the laws are being written globally to prevent a pension crisis!

If the global economy deflates, the problem isn’t necessarily the pensions, the problem is the size of the Government workforces all over the world. You see the modern world, doesn’t understand austerity measures, in the Western World, most of us don’t think Austerity measures can happen here.

Most people don’t even understand what austerity measures are, well in easy to understand the terminology, instead of austerity measures, Argentina hyperinflated its currency, in fact, Argentina has hyperinflated its currency several times.

Whether your money is backed by gold or not backed by gold it doesn’t matter, if the cost to run your government is too large, one day, your government will have to answer to its debtors. Now, obviously it’s a better idea to voluntarily default rather than have your lenders call in the debt, but this is simply something people are going to have to learn the hard way.

Because government services you take for granted, government regulations which you assume are enforceable all get up into question when nobody wants to lend you money. Having to build your economy up, via your own labour is not easy, it means welfare services get cut, it means entitlement spending is cut, it means only essential public services are saved.

A lot of people don’t understand what deflation means, you see if the market was allowed to function, all of these problems that are now assigned to the government would have been done by the Private Sector for a lot less money. But because a lot of people don’t see how they benefit from Walmart and Amazon competition against each other, some people will opt to have the government pick winners and losers in the economy which in the long term creates a false sense of economic security.

This is, of course, is why the Pension crisis is going to hit people in a way that will be hard to comprehend when it happens. The pension crisis is already here as Robert Kiyosaki points out, however it’s not mainstream yet. If only a handful of pensions go bankrupt not a big deal, it’s only one it becomes mainstream that people will comprehend it.

As I said, when the pension crisis hits, it’s deflationary, however, the government response as many people believe will be to print money, the problem with printing money to save the coming pension crisis is that it’s likely that because of all the regulations no company will want anything to do with that printed money!

No company wants to take the blame for a problem created by the government. Now, don’t get me wrong, I’m sure there will be companies that take the bait, but as an investment, you’d be an idiot to jump on board of any one of these failing pension funds or even to be part of a pension fund board, now I think there will be people who join pension boards and become whistleblowers, but, basically, a lot of people already see and know what’s happening.

Now, let me be clear not every pension will fail, but there’s enough of them that will fail that it’s going to be a major problem and if the government steps in a bail them out, here’s the problem, the government will more than likely have to bail out these falling pensions every month, maybe every week and eventually every single day. It’s already happening and there’s no way to stop it.

Consider educating yourself on pension funds and austerity measures!

If You Pay Taxes You Need To Watch This – Robert Kiyosaki Ted Siedle Sal DiCiccio | RichDad

Interesting times ahead!