Monday, January 17, 2022

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The Stock Market Has Gone Up More Than 5 Trillion Dollars Since Donald Trump Was Elected

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by Michael Snyder, The Economic Collapse Blog:

One year ago we witnessed the greatest miracle in political history, and since that time we have also witnessed one of the greatest miracles in financial history.  On November 8th, 2016 the Dow closed at 18,332.74. On Wednesday, it closed at 23,563.36.  U.S. stocks have increased in value by about 5.4 trillion dollars since Donald Trump was elected, and I don’t think that we have seen anything quite like this ever before.  So does Donald Trump deserve the credit for this unprecedented stock market run?  Many experts are at least giving him part of the credit

Greg Valliere, chief global strategist at Horizon Investments, says outgoing Federal Reserve chair Janet Yellen deserves “much of the credit” because the Fed’s policy of low interest rates has helped maintain a good economy and “favors stocks over other investments.”

But Trump, he adds, “gets some credit for establishing a pro-business climate in Washington.” Trump also gets kudos for rolling back business regulations and pushing for a big tax cut for U.S. corporations, which investors say will boost corporate profitability.

Without a doubt, a Trump victory was a good thing for the financial markets, but politicians need to be careful not to take too much credit for soaring stock prices.

Because if they take credit when stocks go up, then they also have to be willing to take the blame when they go down.

The primary reason why stock prices have gone up so much over the past several years is due to unprecedented intervention by global central banks.  They have literally pumped trillions of dollars that they have created out of thin air into the financial markets, and of course that was going to drive up asset prices.

But now global central banks are reversing course in unison, and we will see if financial markets around the world can maintain these dizzying levels without artificial support.

Because the truth is that whenever price/earnings ratios have ever gotten this high throughout history, a horrifying stock market crash has always followed.  There is no way that stock prices can stay at these levels without central bank support, and the trillions of dollars in paper gains that we have seen up to now can potentially be wiped out very rapidly.

Just look at a company like Snapchat.  This is a company that is supposedly worth 15.4 billion dollars at the moment, and yet it is bleeding hundreds of millions of dollars a quarter.  The following numbers come from Wolf Richter

Snap Inc., the parent company of Snapchat, reported late Tuesday that its revenues in the third quarter rose 62{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} from a year ago, to $208 million, while its net loss more than tripled to $443 million. How? It wasn’t easy, but here’s how they did it:

  • Cost of revenues, $211 million, exceeds revenues, a troublesome indicator. Most of it is what Snap pays Alphabet for hosting its content in the Google Cloud.
  • Research and development expenses, $239 million, also exceed revenues.
  • Sales and marketing expenses, $102 million, to push those Snapchat Spectacles? More on those in a moment.
  • General and administrative expenses: $118 million

Total expenses of $670 million, against revenues of $208 million. That’s what I call a business model.

I want to be very clear about what I am going to say next.

Snapchat’s business model is terribly broken, and this is a company that is going to zero.

Ultimately, those that hold Snapchat stock to the very end will lose everything.  Instead of 15 billion dollars, this is a company that won’t be worth 15 cents.

Speaking of going to zero, Sears just announced that they are getting rid of up to 140 more stores.  We have already set an all-time record for retail store closings in 2018, and the “retail apocalypse” that we are witnessing is only going to continue to accelerate.

But at least the stock market continues to set new record highs, right?

Don’t be fooled by the headlines.  The artificial stock market bubble is living on borrowed time, and meanwhile the “real economy” continues to struggle.

When the stock market finally crashes, it will not be Donald Trump’s fault.

Let me say that again.

Read More @ TheEconomicCollapseBlog.com

Gold, Bubbles, S&P 500, and Currency Wars

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by Gary Christenson, Deviant Investor:

From John Rubino: “We’ll Look Back At This And Cringe

“Millions of people out there still bear the psychic scars of buying gold at $800/oz in 1980 or a tech stock at 1,000 times earnings in 1999 or a Miami condo for $1,000 per square foot in 2006.

Today’s bubble will leave some similar marks. But where those previous bubbles were narrowly focused on a single asset class, this one is so broad-based that the hangover is likely to be epic in both scope and cumulative embarrassment.”

WARS: CURRENCIES AND NUCLEAR

From Timothy Alexander Guzman: “A Currency War Will Escalate

One quote that always crosses my mind regarding the decline of the U.S. dollar and the state of geopolitics associated with it, is by Gerald Celente, founder of the Trends Research Institute who said that “When all else fails, they take you to war.”

As the U.S. dollar continues to lose its status as the world’s premiere reserve currency, the reality of a world war seems inevitable, especially when major countries such as China, Russia and Iran are making strategic moves to bypass the U.S. dollar in favor of other currencies such as China’s ‘Petro-Yuan’. China has made the decision to price oil in their own currency the “Yuan” by a new gold-backed futures contract which will change the dynamics of the world’s economy. China is preparing to launch the petro-Yuan later this year that will eventually threaten the U.S. dollar as the world’s reserve currency.”

The Gold Market – 30 Year Log Scale Graph:

From Christopher Aaron: Gold Price Forecast – First Breakout Signal Since 2008

This is interesting analysis from Christopher Aaron!

“In sum, the leading signals of gold rising versus the broad commodity index at a major price low, the downtrend break, and the trend line retest were all sequential indicators of a significant advance in prices setting up for the future.”

REGARDING SILVER:

From James Cook, President of Investment Rarities, Inc. – October 2017 newsletter:

“We’ve been buying back a lot of silver lately which is another sign of a bottom.”

Read More @ DeviantInvestor.com

Doug Casey – Future of Western Civilization is Bleak

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by Kerry Lutz, Financial Survival Network:

Doug Casey joined us for a follow-up to his speech at the New Orleans Investment Conference. Doug expressed his reservations about the survival of Western Civilization. Between the dumbing down of the population, unrestrained migration and a generally coarsening of discourse, the individual’s sovereignty is under attack. It’s faced other challenges in the past, but perhaps this time is different. We had better wake up quickly. He also discusses his latest book, Speculator.

Click HERE to listen:

Read More @ FinancialSurvivalNetwork.com

Does Jerome Powell Hear the Alarm Bells from Flattening Yield Curve?

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by Pam Martens and Russ Martens, Wall St On Parade:

In November of 2016, there was more than 100 basis points (one percent) difference between the yield on the 2-year and the 10-year U.S. Treasury Note. As of this morning, that difference stood at 68 basis points, a dramatic flattening in the yield curve and harkening to the levels seen during the onset of the financial crisis in 2017.

As of 7:48 a.m. this morning, the spread between the 10-year Treasury Note (yielding 2.33 percent) and 30-year Treasury Bond (yielding 2.81 percent) is even smaller, at a meager 48 basis points or less than half of one percent.

It is a serious commentary on the bizarre financial times in which we live that a fixed income investor would be rewarded with less than half a percent of additional income to add 20 years of risk to the maturity date on his bond.

The Treasury yield curve is the sine qua non to bond investors because it is thought to represent the composite wisdom on the future of the U.S. economy from a vast body of diverse Treasury buyers – from pension funds to insurance companies to mutual funds to mom and pop investors.

A growing economy with related worries about increases in future inflation would typically produce rising yields on longer-term notes and bonds, not declining yields. A dramatic flattening in the yield curve is seen as a red flag for an economic slowdown, sagging inflation and as a potential precursor to the onset of recession. None of that would be consistent with the Federal Reserve continuing to tighten interest rates – which it is expected to do again in December.

The dramatic flattening in the yield curve comes at an inopportune time for the Federal Reserve, which is in the midst of passing the baton from a known factor, Chair Janet Yellen, to a less known factor, newly nominated Fed Chair, Jerome Powell. Unlike his recent predecessors, Powell holds no degree in economics. He has a law degree from Georgetown University Law Center and a B.A. in Politics from Princeton University. Powell has served as a member of the Fed Board of Governors since 2012. From 1997 through 2005, Powell was a partner at the private equity firm, the Carlyle Group. He also has significant Wall Street investment bank experience, having previously worked in executive positions at Dillon Reed and Bankers Trust.

Powell’s Senate confirmation hearing is set for November 28 and it is anticipated that he will take the reins at the Fed in February when Yellen’s term expires.

Read More @ WallStOnParade.com

Mass Shootings, Mass Psychology And Self-Defense

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by Brandon Smith, Alt Market:

There is an unfortunate correlation between crises and catastrophes and mass psychology. For those with a decent long-term memory, you may have noticed that the frequency of attacks and tragedies taking place today around the world is far above and beyond what occurred 10 years ago. So much so that many in the public have moved beyond the point of outrage and have now embraced complacency.

The mass shooting issue, for example, once inspired fevered debate over gun rights. Not so much anymore. While I am happy that the relentless attempts by leftists to exploit every shooting as a tool for their gun grabbing agenda have taken a backseat, I see a trend in another direction which is equally dangerous. That trend is a move towards acceptance that “these things happen,” instead of a healthy discussion on real solutions (and no, more gun control is not one of them).

A decade ago the Vegas shooting would have inspired media and social discussion for at least a year. Now, the story disappears in two weeks and is replaced with 10 others. I will be surprised if the latest church shooting in Texas in which 26 people were killed stays on the news feeds for more than a few days.

Where does this complacency come from?

It is a complex problem, but one that I think relates to the state of decline within any particular society. In Carl Jung’s The Undiscovered Self, Jung mentions a consistent element of latent sociopathy and psychopathy within most cultures. Perhaps 10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of people within a society are latent sociopaths and psychopaths, and around 1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} or less represent full blown sociopaths/psychopaths. Most of the latent people will never become truly dangerous if they are living within a culture that is healthy and morally balanced. In fact, those with inherent sociopathic traits can become very high functioning human beings who are adept at careers that many other people avoid (surgeons and career soldiers are two examples).

However, in the event that there is cultural rot and a degradation of principles, environmental influences come into play and latent sociopaths/psychopaths have the potential to mutate into something far more dangerous. Jung examines this dynamic as an explanation for the sudden and accelerated decline of Germany in the 1920s and 1930s into totalitarianism and moral relativism. When the mentally disturbed 1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} turns into 10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} or more, entire nations can be dragged along into the abyss.

As a litmus test I find it valuable to look at popular culture when trying to determine if a society is on the brink of collapse into a singularity of moral relativism, because popular culture often reflects these elements more honestly than the supposed “experts” will. When examining Germany before its fall, I recommend studying the films of Fritz Lang; particularly his movie ‘M’ released in 1931, which depicts a serial killer with a penchant for children being put on trial by a group of underworld criminals, not because they abhor what he does on moral grounds, but because his activities are drawing too much unwanted attention from authorities on their own criminal enterprises. If the dark world of ‘M’ doesn’t perfectly showcase the decline of Germany, I don’t know what does.

Today, we are constantly surrounded by popular culture which leans towards the morally relative; stories in which the heroes must become monsters in order to defeat other supposedly worse monsters. At another level, our popular culture tells us that it is only the fantastical, the super powered and the government contracted heroes that have the ability to affect change and disrupt disaster.  Underlying all of this seems to be a narrative of defeat; the notion that there is nothing the average person can do.  And, of course, we are also bombarded with stories in which gluttony and decadence are applauded while anyone that takes a more responsible path is portrayed as unhappy or joyless in the long run.

Translate this to the developing trend of mass shootings around the world and the public reaction to them. On one end of the spectrum, in the past it was the sociopathic left that saw mass death as an opportunity to enforce political control over gun rights advocates, with the goal of eventually achieving total disarmament. These people do not care about the dead, let alone logic, they only care about furthering their agenda.  They see government power as the answer to every problem.

If you were to hold up examples like the Paris or Mumbai attacks to gun grabbers and point out that disarmament only makes mass shootings EASIER for criminals and terrorists, they would not listen. Obviously, if any of the citizens including the off-duty police officers had been armed in Paris, the attack might have been stopped much sooner.

In the case of the church shooting near San Antonio, that attack WAS interrupted by an armed neighbor of the church who used his rifle to fend off Devin Kelley, forcing him to escape in his vehicle. Had that neighbor not been armed, the massacre might have gone on much longer. Had one of the people within the church been armed, the attack might have ended in seconds, as we saw in Denver in 2007.

Now, as I said earlier, there are sociopathic members of the political left that seek to take advantage of these scenarios, but these people have fallen by the wayside recently. On the political right, sadly, I have seen another brand of sociopathy rising, with some arguing that all the people within the San Antonio church that were unarmed “deserved to die.” This is just as dangerous a mentality as the exploitations of the left. If the liberty movement itself sets aside empathy and resorts to sensationalist or morally relative methods to drive forward a political agenda, then we are only hastening the fall of our culture, not protecting it. And, we become no better that the leftist disarmament thugs we abhor.

In between these two extremes sits a coagulated mass of people who simply don’t care much as long as a particular disaster doesn’t involve them. These are the folks who are uninterested in solutions and don’t really want to hear anything about it. It is these people who tend to become wreckage floating on the tides of history; their lack of concern eventually comes back to haunt them in the future.

So, if these are the wrong ways to approach the mass shooting problem, then what are the right ways?

I think it is vital that Americans in particular maintain our care and concern for the victims of these events. The solution to mass shootings is clearly a responsibly armed populace.  According to all the stats on active shooters, defense by citizens is the only factor that seems to make much difference. But to convince more and more people of this requires a level of conscience and empathy that inspires confidence, and perhaps brotherhood. When people know that you give a damn and aren;t simply pursuing an agenda like the political left does, it is more likely that they will listen to what you have to say.

As I noted in my article How To Stop All Future Mass Shootings, the Vegas attack was organized by someone who was smart enough to avoid a point-blank engagement in a city and state in which concealed-carry firearms are more common. Point-blank attacks are by far the most common because they are generally attempted by people who have minimal training or because the attackers are relatively certain that their victims will be disarmed in the area they have chosen (gun free zones).

Read More @ Alt-Market.com

One Year Later……. And They Are Still Screaming – Liberals Unable To Cope With Election Loss Have Epic Collective Meltdown!

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by Susan Duclos, All News Pipeline:

Watch The Weirdos, Cultists, Morons, Communists And The Uninformed Self-Implode!

Happy Anniversary Deplorables!

One year ago today, ANP readers spent the day following the election exit polls, and tracking results state-by-state, staying up together and watching what was undoubtedly one of the most exciting, nail-biting, controversial elections in modern history. That comment thread on the live election day coverage had over 3,200 comments as everybody stayed up almost all night watching and then celebrating the fact that Donald Trump had just became the President-Elect.

On the other side of the coin, media pundits, pollsters, Clinton supporters, liberals, and the NeverTrump RINOs (Republicans In Name Only) all freaked out, publicly, live on air, their shock palatable. Well, they’ve done it again! You’ve got to see the videos at the bottom of this story from yesterday as liberals across numerous US cities have an epic collective meltdown! But first. 

FLASHBACK: THEY SCREAMED

Can anyone forget the instantly viral image of a woman on inauguration day,  screaming NOOOOOOOOOOOOOOOOOO helplessly at the sky?

In the year since the election we have seen those same cast of characters continue to scream, about Russia! About Fake News! About the Electoral College, with the NY Times still whining about it as recently as November 7, 2017. They screamed RECOUNT! Then they threatened electoral college members’ lives.  Democratic political “Auntie” Maxine Waters was screaming for impeachment since before President Trump was even inaugurated!

Hillary Clinton herself is still screeching about Russia, James Comey, the media, the DNC, the “deplorables,” sexism, misogyny, BernieSanders, Wikileaks, the debate questions, women under pressure from men, white people, and a whole host of other things, as she went on her book tour, as compiled by the Daily Caller in the video below.

The media, which didn’t even pretend to be objective during the primaries, nor the general election, with studies having found that 91 percent of the biased reporting was “hostile” to Donald Trump in the 12 weeks following the party conventions when Donald Trump was named the Republican nominee, and Hillary Clinton was named the Democratic nominee, suffered a mass meltdown, live on air, following the final election results.

After President Trump was inaugurated that pattern continued, where networks provided 82 percent “negative” coverage of the President in just his first hundred days.

It wasn’t until after the 2016 Presidential election that some pundits finally admitted that they knew how “hated” Hillary Clinton was in the heartland, but they deliberately chose to “underplay” the truth to their audience, literally keeping them uninformed, which is largely why liberals, NeverTrumpers, and media pundits themselves that had started believing their own “fake news,” were so blindsided by Trump’s electoral victory.

Reactions hit the height of absurdity with the creation of an alternate reality website, where every report pretends that Hillary Clinton was elected the President. They pretend that Huma Abedin is the White House chief of staff under “President” Clinton, and that Hillary has decided to run for “re-election” in 2020, and a whole host of other entirely fake news.

ONE YEAR LATER…….THEY ARE STILL SCREAMING

As Stefan Stanford reported back on October 22, 2017, liberals have planned an event for the election anniversary to “scream helplessly at the sky,” in what he dubbed a “Mass Demonic Possession,” where they plan to join together in multiple cities across the country,  including New York, Boston, Philadelphia, Miami, Dallas, and Austin, to scream their “frustrations.”
 

“Join us cucks and snowflakes, safe spacers and libtards, as we enjoy a collective cathartic yell into the heavens about our current political establishment,” organisers of the New York event wrote.

The organizer of th NYC screamfest event, actually put out a pretend interview, with himself…. (yes, he asked smart-aleck questions, then answered his own questions), but in that piece on Medium, he explained why he is doing this, stating “I can’t keep up with it all. Every time I think of the laundry list of social injustices on top of my own sh*t like my actual laundry I get overwhelmed. Every news notification on my phone is a reminder of something over which I am powerless. And I think a lot of people feel that way. So f**k me for thinking it’d be nice to yell about it.”

Reports indicate that others are planning to attend the collective liberal temper tantrum event, just to laugh at them all “screaming helplessly at the sky.”

Note– Please feel free to share any videos and images captured from tonight’s events in the comment section below, as we celebrate the Deplorable anniversary….  and they scream.

Read More @ AllNewsPipeline.com

Keiser Report: If Only Arrested Saudi Prince Owned Bitcoin (E1147)

from RT:

In the second half Max continues his interview with Dr. Michael Hudson, author of Super Imperialism. They recount the history of labor, socialism, Minneapolis and more.

Four Undeniable Signs That the American Economy Is Collapsing

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by Dave Hodges, The Common Sense Show:

There are four unmistakable signs that the American economy is in the midst of collapse”

  1. “Hooverville tent cities are appearing across the western United States.
  2.  The American banking empire is showing clear signs of impending collapse.
  3.  Key members of the elite are behaving like the elite of 1929 with regard to the Stock Market.
  4.  In a stunning development, the key members of the Federal Reserve are actually abandoing the dollar in facor of cryptocurrency.

The Economic Chest Pains Prior to the Heart Attack

A blind man who is paying attention could tell you that all the indicators are there with regard to the fact that an economic collapse is at hand. Let’s begin with the subtle signs which parallel the Great Depression.

We know that the make-shift tent cities emerged in great number during the Depression. They were often referred to as “Hoovervilles” in honor of the bumbling President that did everything wrong when the economic crisis first hit the country. Well, today in America, tent cities are appearing all over the western United States. In Seattle, for example, we are witnessing the proliferation of many high tech companies moving their headquarters to the city where the average home now costs over $700,000 and even rental apartments are reaching correpsonding highs as well. Subsequently there are many working people living in these cities.

Another set of chest pains before the heart attack are appearing in the economic sector in which Iran and China are embracing Bitcoin and other cryptocurrencies. This says a number of things. First, this is an admission that there is not enough gold in the world to cover the gold-for-oil scheme that has replaced the Petrodollar with regard to the purchase of oil (Editors Note: What is going to happen to the price of gold?). Secondly, the world is running from the dollar and this should signal that even your bank account is in dire trouble. Here is a brief summary of this developing scenario.

Read More @ TheCommonSenseShow.com

Victim Blame: Media Suggests Rand Paul Deserved To Be Attacked

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by Joe Jarvis, The Daily Bell:

The media has got their narrative and they are sticking to it.

It doesn’t matter that a shooter specifically targetted a Republican softball practice in June. It didn’t fit the narrative that the right is brewing hatred and violence. So most media was quiet about the Democrat Bernie supporter shooter.

Senator Rand Paul was one of the members of Congress at that softball practice in June. And now, for the second time this year, he has been literally attacked by a Democrat.

Rand Paul was attacked at his home earlier this week by his neighbor. First news outlets made it seem like this was just a silly little case of neighbors feuding over the length of the lawn. But then it came out that Rand suffered 5 fractured ribs. He was blindsided after cutting his lawn, still wearing ear protection.

And if the nonchalant attitude of the media wasn’t enough, GQ published a piece called Rand Paul Sounds Like the Worst Guy to Have as a Neighbor.

That’s it. Blame the victim. Rand Paul deserved to be attacked because he is an annoying neighbor.

So, let’s read between the lines a bit here. Rand Paul is an asshole neighbor. He bought a house in a neighborhood that has certain rules with regard to lawns, and he decided that he doesn’t need to follow those rules because of his belief in “property rights” that don’t actually exist. This is, at its core, the problem with libertarianism. Libertarians don’t want to follow the rules that we as a society have agreed upon, because they feel those rules step on their freedoms. And sometimes they might even be right, but that doesn’t mean that they are above those rules and can do whatever they want.

GQ never bothered to find out whether Rand Paul actually broke any of the rules, nor what specifically those were. But they did note that he composts and grows pumpkins on his property. Sounds like a pretty big scumbag.

Now to be fair, I don’t know why Paul would buy a home in a strict neighborhood. By joining a voluntary neighborhood association, you are making an agreement that if you buy the land, you will abide by the pre-existing rules. A true libertarian would have bought an off the grid bunker somewhere in the remote hills of Kentucky.

But I do think it is funny that the major complaints against Paul involve composting. I talked about this the other day, how everyone looks for the worst. The media could focus on the fact that Paul puts food waste to good use instead of filling the landfills. But instead, he is just a jerk because the neighborhood association apparently says you can’t compost.

It is also pretty damn ironic that the article complains about Rand Paul breaking his neighborhood association rules. Because at the same time they gloss over the fact that his neighbor broke that pretty standard social rule about not violently attacking people.

But don’t worry, GQ did put part of the blame on the violent attacker:

Now, I don’t want to excuse the other side of this. One of the problems with Democrats is we’ve never met government oversight that we didn’t like. And there’s a good metaphor for Democratic politics in the obnoxious Home Owners Association rules that drive everyone crazy. So it sure seems like this Rene Boucher was also an asshole, who cared way too much about what his neighbor’s yard looked like.

Read More @ TheDailyBell.com

It Begins: Pension Bailout Bill To Be Introduced This Week

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from ZeroHedge:

Over the past year we have provided extensive coverage of what will likely be the biggest, most politically charged, and most significant financial crisis facing the aging U.S. population: a multi-trillion pension storm, which was recently dubbed “one of the most heated battles of a lifetime” by John Mauldin. The reason, in a nutshell, why the US public pension problem has stumped so many professionals is simple: for lack of a better word, it is an unsustainable Ponzi scheme, in which satisfying accrued pension and retirement obligations requires not only a constant inflow of new money, but also fixed income returns, typically in the 6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}+ range, which are virtually unfeasible in a world where global debt/GDP is in the 300{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}+ range.  Which is why we, and many others, have long speculated that it is only a matter of time before the matter receives political attention, and ultimately, a taxpayer bailout.

That moment may be imminent. According to Pensions and Investments magazine, Democratic Senator Sherrod Brown from Ohio plans to introduce legislation that would allow struggling multiemployer pension funds to borrow from the U.S. Treasury to remain solvent.

The bill, which is co-sponsored by another Democrat, Rep. Tim Ryan, also of Ohio, could be introduced as soon as this week or shortly after. It would create a new office within the Treasury Department called the Pension Rehabilitation Administration. The funds would come from the sale of Treasury-issued bonds to financial institutions. The pension funds could borrow for 30 years at low interest rates. The one, and painfully amusing, restriction for borrowers is “they could not make risky investments”, which of course will be promptly circumvented in hopes of generating outsized returns and repaying the Treasury’s “bailout” loan, ultimately leading to massive losses on what is effectively a taxpayer-funded pension bailout.

The bill would also fund a program at the Pension Benefit Guaranty Corp. to finance any remaining needs of pension plans borrowing from the new program.

 

“Any money needed for the PBGC would be a tiny fraction of what it would otherwise be on the hook for if Congress fails to act,” said an analysis by Mr. Brown’s office.

Sen. Brown’s angle was naturally populist, and aimed squarely at those whose pensions are likely to recoup pennies on the dollar under the current investing climate: union workers. Brown told a group of retired Teamsters in Ohio on Monday that the bill will be out shortly.

“It’s bad enough that Wall Street squandered workers’ money — and it’s worse that the government that’s supposed to look out for these folks is trying to break the promise made to these workers. Not on our watch. We won’t allow that to happen,” he said.

No, instead what will happen “under his watch” is that funds collected from taxpaying Americans will be spent to satisfy the ridiculous retirement promises and obligations made over the past few decades, and while the immediate recipients of the funds, i.e. those looking at near-term retirement will be made whole, everyone else, i.e., taxpayers will lose.

And now that the machinery for pension bailouts is finally in motion, we look forward to the next, and possibly final, tear in the American social fabric, that between workers who can’t wait to retire to the generous pension promises (see “Why Illinois Is In Trouble – 63,000 Public Employees With $100,000+ Salaries Cost Taxpayers $10 Billion” and “Mapping The $100,000+ California Public Employee Pensions At CalPERS Costing Taxpayers $3.0B”), and all those other unluckly taxpayers, who will have to fund these promises.

Read More @ ZeroHedge.com