If you have a public pension, you had better love Bitcoin. Why you may ask? Well, the news is not pretty. You see, most public pensions are seriously underfunded. The average United States Pension is close to 60% underfunded. Some pensions are 80% underfunded. Yikes. The problem is, public pensions do not need to meet the same stringent criteria as private pensions have to.
Public pensions do not have to adhere to Employee Retirement Income Security Act of 1974 (ERISA). ERISA requires private retire plans to offer information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; and gives participants the right to sue for benefits and breaches of fiduciary duty. Public pensions have zero government fiduciary oversight. What does that mean? Public pensions are not regulated and are not run by professional financial managers. That is correct, over $4 Trillion Dollars of assets are managed by non professionals. Boards of trustees manage these Trillions of dollars and consist of laymen (plumbers, librarians, teachers, police, fireman, sanitation trash collectors etc).
Many State and local pension funds are robbed blind by malinvestment. Even though there are public records law that mandate transparency, the fund managers are able to obscure important disclosures that would otherwise outrage the retirees of such pensions. Tens of Millions and Billions of dollars have been lost and stolen from these pensions. No one ever goes to jail, no one ever does forensic investigations to trace the lost or stolen money. Favorite pension thefts are large construction projects of each State. How about sports stadiums, large apartment or condominium projects, shopping malls, race tracks or hotels/resorts? These are examples of pension fund resources being used to fund such projects with zero accountability. There is never an independent audit on these pensions or projects that they fund. Political cronyism is rampant in pension thefts.
Now here is what is going to happen in the next 24 months or so. 60% to 80% of the Public Pensions are bankrupt. There is no money in these pensions to pay the retirees. Defaults are coming. The hysteria will be great. Any politician that wants to raise taxes to cover the shortfalls will be "hung from a tree" so to speak. People are already taxed to death. If government tries to squeeze more money from the public, you will see global "Yellow Vest" protests everywhere. People will simple shut down and go on strike. They will, at that point, have nothing to lose. What will pension funds do at this point?
I think, pensions will turn to Bitcoin and other crypto currencies as a savior. Pensions will be desperate to look for any rabbit that they can pull out of a hat. Bitcoin and other cryptos, will have the potential to make great gains large enough to bail out the underfunded and stolen public pensions. I think pensions will beg to and start to invest in crypto currencies and the blockchain to gain decades of malinvestment and theft from their coffers. Pensions will need to see 30%, 40%, 50%, 60% are more gains in order to not collapse. Only crypto currencies are in a position to potentially see such gains year after year. Crypto currencies will see a sustainable "Bull Run" for 30 years. It will take that long to convert the entire planets $300 Trillion Dollars plus of assets onto the blockchain and Public Pensions will be right there to take advantage of such gains. They really have no other choice.
So my prediction is, watch for pensions to soon start investing in crypto currencies and the blockchain. Also, watch for individuals who are not getting their pension checks or getting reduced pension checks to start investing in crypto currencies. Individuals will start panicking and be looking anywhere for high yields. The best game in town at that point will be cryptos. Either way, we will see $100's of Billions of dollars coming into FinTech (digital, blockchain, crypto currencies) industry very soon. Why? They will have no choice. The sooner you are positioned before them the better in my opinion. This is not financial advice just an opinion. Take it for what it is worth. I just thought this was an interesting concept. What do you think?
image from: news.bitcoin.com: france24.com
reference interview: Ted Siedle: The Greatest Retirement Crisis In The History Of The World by chrismartensondotcom
He who trusts someone else to advise him on his health and wealth is a fool!
Do research and make informed decisions. The post is a great starting point.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit