Pension-Financing the Deficit

Good evening gentle reader.

Apologies for my being MIA for so long.

Mr. Bury and his site are an excellent source of information on the pension status for NJ and also for the nation.

My practice is taking me a different direction and I would like Americans concerned about their future financial security to be aware.  Just this week, I have spoken with retirement academics, unions, The US Chamber of Commerce, and National Coordinating Committee for Multiemployer Plans, among others.   By now you know I support a combination of recapitalization and reforms for the pension industry.  I support the concept of the Butch Lewis Act.  But I propose financing with the Federal Reserve rather than Treasury.

I have a goal and a calendar. I want to go to test funding by the end of June. Another difference I am proposing with Butch Lewis is, while the act targets Multiemployer pensions, I want to include state pension plans.  I have so far spoken with two states on this subject.

My blessings continue to flow and I am remaining motivated to reach my goal. Each day I am speaking with more and more people asking to review my theories and papers.  This blog is not the proper forum to release my work. Should they be accepted for publication they would enter the public domain this September.  I am hoping to present four papers to the Federal Reserve for publication in their annual Banking Research Conference.  One paper documents how the Federal Reserve can be the lender of last resort to failing pensions.  Another paper documents how the Federal Reserve broke our economy in 2008.  A third paper demonstrates that the Federal Deposit Insurance Corporation is sitting on an untapped multi-billion dollar windfall. I propose this be used for Social Security Rescue.

Since my work is focused on recapitalization and reform of pensions I would gladly accept encouragement and best wishes from any concerned about their financial future.

Should any reader be worried over their pension, hope is not lost.

A final thought.  I have been invited to submit my thoughts on the US Government March 31, 2018 six month budget. The largest entitlement is Social Security.  It is thought Social Security will be beyond repair as early as 2020 without intervention. I share this belief.  I have had speculations yesterday and this morning asking what is necessary to restore Social Security to health and what is necessary to increase the minimum monthly Social Security payment of about $1,300 by another $300 or so per month without new taxes.

Gentle reader, stay tuned.

Tim Alexander

Triune

tim@triunegfs.com

17 responses to this post.

  1. Posted by Tough Love on April 11, 2018 at 8:05 pm

    Quoting Tim …………….

    “I have a goal and a calendar. I want to go to test funding by the end of June. Another difference I am proposing with Butch Lewis is, while the act targets Multiemployer pensions, I want to include state pension plans. ”

    Wow State Plans too !

    I’m sure California’s Safety workers who get a COLA-increased 90% of final pay after only 30 years, and usually commencing in the mid-low 50s (with NO reduction for the young age) whose Plan is only 2/3 funded are loven-it !

    Oh, did I mention that their pension is ROUTINELY 6 TIMES greater in value upon retirement than those typically granted Private Sector workers in jobs with comparable risks and which require comparable education, experience, skills, and knowledge?

    Reply

  2. Posted by Stanley on April 12, 2018 at 9:19 am

    Mr Alexander, FDIC reserves are pitifully low. FDIC would need a bailout of its own given a significant financial storm similar to 2008-9 or worse. The distinction of the Federal Reserve vs the Treasury Dept funding a bailout is small. Do we hit the tax paying public in the left pocket or the right pocket? Do we raise the money in taxes that people pay or do we dilute dollar values? The direct taxes DO LESS harm to the economy because at least people can see that the money is gone and adjust their own spending. Pulling the wool over people’s eyes really isn’t an improved MO.

    Honesty, Tim! Pension and health care benefits have been severely over promised and it is way past time that we man up and face facts.

    Reply

  3. Posted by Stanley on April 12, 2018 at 10:16 am

    Mr Alexander, You might be doing the country a real service. You suggest that Schumer, Pelosi and the usual RINO suspects have left unspent a big box of spendable money and they might all die laughing. Getting all of the spendable money spent plus some is the one skill they are world class at. Pot of gold, magic beans, sorry buddy, somebody beat you to it.

    Reply

  4. Posted by Anonymous on April 12, 2018 at 2:18 pm

    Anybody reading about what’s happening in Harvey, IL…….coming soon to a town or city near you!!

    Reply

  5. Posted by geo8rge on April 12, 2018 at 8:11 pm

    “One paper documents how the Federal Reserve can be the lender of last resort to failing pensions” Lender implies getting paid back. Will they be paid back?

    “the Federal Deposit Insurance Corporation is sitting on an untapped multi-billion dollar windfall.” If so shouldn’t it be used to reduce bank premiums paid to the FDIC. I would expect lawsuits if it wasn’t. Maybe the multi employer plans are a billion dollar problem, but state, federal and SS pensions are trillions, and inflation adjusted, so you cannot just print money. You cannot solve a trillion dollar problem with billions.

    “Another paper documents how the Federal Reserve broke our economy in 2008.” The root cause of the financial distress was war spending.

    “while the act targets Multiemployer pensions, I want to include state pension plans. ” I thought state underfunding was into the Trillions. And SS underfunding was Trillions. Since the retirees expect inflation adjusts, you can’t just print the money. The only thing out there I see that is ballpark those amounts is war spending with some foreign policy thrown in.

    So in summary, I don’t think the vast sums needed will be obtained from recovering assets being held by the US gov.

    Reply

  6. Posted by Tough Love on April 12, 2018 at 8:38 pm

    Tim is a fruit-loop.

    After repeatedly talking up his “papers”, the first of which was to be finished about 1 month ago, now we have Tim saying ….. “This blog is not the proper forum to release my work.”

    Perhaps he fearful of the negative reception.
    ————————————————–

    And as to THIS ……………. “Just this week, I have spoken with retirement academics, unions, The US Chamber of Commerce, and National Coordinating Committee for Multiemployer Plans, among others. ”

    Anyone can call such groups and get a few words in (which could easily make Tim’s above statement accurate). But anyone who thinks that intelligent people in a position to direct Gov’t policy are earnestly listening to Tim, have rocks in their head.

    Reply

    • Using the men’s room at the US Chamber of Commerce does not constitute having had a meeting. To regain any form of credibility whatsoever, your claims must be backed up with names, dates and contact information. Otherwise, it all sounds like BS.

      Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: