Thursday, 10 December 2009

come on: "bash it!"

telegraph: Taxpayers-face-2-trillion-unfunded-pensions-liability

I'd understand if we had a wide and strong export industry to then trash the Sterling obviously would make sense (for the Export lobby and foreign tourists) just as China and the US (and others) are doing it at the moment (to the extreme).

But to bash one's own currency in times where we are depending on imports, should avoid (importing) inflation and rather strengthen our purchase power comes very close to acting suicidal.

The entire bill of around £2.2 trillion would more than triple the size of the national debt overnight. It is entirely unfunded, so will have to be paid directly by future generations of taxpayers, rather than out of a pot contributed to by the pensioners themselves.

Well, how new is that?

Between you and me and the gate post: at least one of the economies that make the EURO is insolvent, officially; it's called Greece! Others, in fact the majority, are close to being insolvent and are definitely over indebted! And close to all of them face the same downturn, the same deflationary scenario and, believe it or not, very similar liabilities when it comes to public sector pensions etc.

They just don't talk about it!

Why do we?

Is there a specific hidden agenda we should get prepared for?

Carpe diem!


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