Could the country’s pension mess be more widespread than we even realize?
Martin Armstrong of Armstrong Economics thinks so. He says, “under no circumstances assume that any government pension will actually be paid.”
And he means even government pensions in states now considered economically sound.
Illinois’ credit rating is on its way to “junk” status.
According to an AP report, S&P Global Ratings recently warned it will likely lower Illinois’ creditworthiness to below investment grade if feuding lawmakers fail to agree on a state budget for a third straight year.
The Federal Reserve nudged up interest rates another .25 points last week. Of course, nobody was surprise by the central bank’s move. It was widely expected. Nevertheless, the Fed’s latest policy move has everybody bullish on increasing rates into the future
Of course, nothing has fundamentally changed. As Paul Singer said earlier this month, the financial system is no more sound than it was in 2008. All of this talk about rate hikes will vanish like a vapor if actual economic data continues to point toward a slowdown.
But since everybody is talking rate hikes right now, this is probably a good time to consider just how rising interest rates will effect your wallet.
The debt time bomb continues to tick. There is growing evidence that we’re getting close to an explosion.
And what do we have to show for trillions in borrowing?
Not a whole lot.
A Bloomberg article published this week proclaimed America has a debt hangover resulting from a half decade of “binging on credit.” The percentage of overdue debt has risen two straight quarters and consumer companies say customers are under stress. On top of that, bankruptcies are rising.