by Martin Armstrong, Armstrong Economics:
The world’s largest pension fund, the Government Pension Investment Fund (GPIF) of Japan, reported a $61.1 billion loss for the first quarter of the year. Half of the fund’s $1.5 trillion assets under management (AUM) are within overseas markets, and although susceptible to currency fluctuations, the true problem lies in the fund’s other 50% of its portfolio—government bonds split 25% domestically and 25% foreign.
Any pension fund that holds government debt in size and thinks it will return to normal is delusional, as I mentioned back in 2021. They have faith that yields will recover when that is simply not the case. The entire idea of pensions has been set around the average 8 % return in interest rates, but it has been pension funds that are primarily the cause of lower interest rates, not the central banks. The number of pension funds out there created a bid for long‑term bonds.
President Donald Trump committed an unforced error when he should have had an easy grand-slam home run, why is he covering up the truth about Jeffrey Epstein?
