One issue that seems to garner no attention from the media these days are the enormous and growing unfunded liabilities of Canada's public pension plans.
Federal Plans are short $131 Billion
Provincial Plans are short $76 Billion
Total shortfall $207 Billion.
(These are from 2005! They have grown larger in the last 4 years).
http://www.parl.gc.ca/information/library/PRBpubs/prb0641-e.htm
That amounts to nearly $6100 for every man, woman, and child in this country.
I am becoming increasingly convinced that Canadians will not be able to rely on governments to meet their pension obligations without either massive tax and contribution increases or large reductions in payout amounts. There is no easy choice.
My suspicion is that what governments in developed countries will attempt is to inflate the problem away with Quantitative Easing and other loose monetary policy. A sneaky attempt to deal with the problem and avoid the wrath of voters in democracies. By increasing inflation rates to 15% or so in 14 years the problem would be one third the current size if payouts were held constant.
My conviction is that one of the few places to hide from this problem is precious medals. They should respond favorably to inflationary monetary policy.
Federal Plans are short $131 Billion
Provincial Plans are short $76 Billion
Total shortfall $207 Billion.
(These are from 2005! They have grown larger in the last 4 years).
http://www.parl.gc.ca/information/library/PRBpubs/prb0641-e.htm
That amounts to nearly $6100 for every man, woman, and child in this country.
I am becoming increasingly convinced that Canadians will not be able to rely on governments to meet their pension obligations without either massive tax and contribution increases or large reductions in payout amounts. There is no easy choice.
My suspicion is that what governments in developed countries will attempt is to inflate the problem away with Quantitative Easing and other loose monetary policy. A sneaky attempt to deal with the problem and avoid the wrath of voters in democracies. By increasing inflation rates to 15% or so in 14 years the problem would be one third the current size if payouts were held constant.
My conviction is that one of the few places to hide from this problem is precious medals. They should respond favorably to inflationary monetary policy.
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