Monday, February 6, 2017

California’s contributions to pension fund projected to triple


Higher rates will come to the rescue.

If not, then even more extreme chaos out there especially if Trump cuts them off...



3 comments:

Andrew Anderson said...

Positive yielding sovereign debt is welfare proportional to wealth. If California retirees need welfare we should just give it to them via a BIG or UBI and we can help "finance" it with negative interest on inherently risk-free sovereign debt with the most negative interest on "reserves"* at the FED beyond a, say, $250,000 individual citizen limit.

There's a way to straighten out this mess via ethics and I suggest we do so before it's too late.

*a euphemism for private sector account balances at the central bank in the case of banks, etc.

Matt Franko said...

They dont need "welfare" they have a contract... unfortunately a contract with morons....

Andrew Anderson said...

When negative rates on new sovereign debt are imposed (as they should be) then existing sovereign debt will be more valuable.