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The coming pension meltdown

Low interest rates destroying pensions

 

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What happens when interest rates are zero

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It's just common sense, but common sense is the rarest thing when the government is involved.

Tens of millions of families depend on pension payments. Those pensions were designed with the assumption of a fair return on money.

What happens when interest rates are zero?

There's no rate of return at all. The money can't grow. The principal gets cannibalized. Inflation does the rest.



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