On March 3rd of this year, with the Dow Jones Industrial Average trading at 12,300, we made a prediction with respect to public pensions. Dow futures for this morning are now hovering around 8,000.
90% of pension funds were deemed healthy in the year 2000. In 2006, the number had dropped to 58%.
So with the market down 35%, what percentage of government pension funds are healthy going into November? That is a number you probably won’t be able to find. Here is some color commentary in any case. Pension fund assumptions continue to include an average annual rate of growth of 8%.
As this unfolds, the strong federal government that the Founders feared will print money to pay government pensions, with the end game being inflation, a tax on everybody to pay for the actions of those who abandoned truth for political expedience.