Uncle Sam is lumbered with a staggering debt and it’s not looking good. Obama’s going to need the Republicans to make the best of a bad hand, writes Politics Preacher.
There has been some rather scary talk of Greece defaulting recently, and the amount it will cost us as well as other countries, something which this blog has covered.
Something which has had a lot less coverage is the USA. They are in big trouble. They have something called a “debt ceiling” which is at around 14 and a half trillion dollars, a level for which they may not borrow above without approval. Their current national debt stands at around that level, and most analysts agree that between now and the 4th of August, that debt ceiling will be triggered.This will in turn lead to “selective defaulting” a tough thing to define, as no one has yet said who exactly they would be defaulting on. Continue reading
Public sector pensions are seen as compensation for a lifetime of hard underpaid, under-appreciated labour.
However, a recent Office for National Statistics (ONS) survey showed that public sector workers retire with pensions worth up to eight times that of their private sector equivalents.The anomaly is the way that pension schemes work in the public sector, which should have been blindingly obvious from the minute they were formulated, are unaffordable.
If you are lucky enough to have accumulated some money in a private pension, the pension company is legally obliged to keep reserves of cash or liquid assets in order to fund these pension schemes. They also invest in a wide portfolio of things which make a return, paying interest on your savings, and increasing the value of your pot, and thus your pension payments. Continue reading