We know the situation in Britain and many blame only Gordo for their pension ills. This is an issue in layers and one layer below that is people’s own bad decisions plus their over-reliance that the pension scheme would always work.
Moving one layer below that, why on earth should the cost of things like houses be as they are – the answer is in the explosion of and control of credit in the market, playing on people’s natural ambition and stupidity. If you take a median salary of £15 000 [excluding the very high and very low] and a house price in Britain of £250 000, then it is obvious that we’re talking around 15 or 16 times a year’s gross.
The last time [and this shows how long ago] I was in the market, the salary was £12 000 and the house I looked at near Bridlington cost £58 000. A considerable difference.
All major items have gotten right out of control, from council tax to water rates, to the point where it is impossible to live. Then we come to pensions and though Brown did wreck the pension funds, the fund managers themselves have much to answer for and … well, yes … so do the ordinary people who failed to save.
Instead of attacking the source directly – the BofE and the banks themselves, the credit issuers, people chose to get more and more credit cards to compensate for the last ones which were limited out, without stopping for one moment to think why this runaway price inflation was happening.
More worrying than this, for me, is how this thing has turned global. Why should a crash on Wall Street result in people in Australia and New Zealand being out of work? Why would Germany be in a dire position as well? Why would all of us be in financial crisis right now? Why would people approaching pension age in Canada be facing penury because they’ve failed to save enough – exactly as in the UK and New Zealand?
You see what I’m saying – why the global nature of what people are seemingly doing locally?
From the Canadian Globe and Mail:
It is very, very agonizing to see these people who have worked all their life to try and get a pension – and, all of a sudden, it falls apart. ” Canadians are facing a national pension meltdown. Decades in the making, it has worsened dramatically during the recession. Businesses are shredding pension promises, retirement savings are shrinking, employees are working longer and the elderly are selling homes and returning to the workforce. As the retirement dream fades, policymakers seem unwilling to tell Canadians they have not saved enough to retire.
Why is it global?
The answer is in the question – because the markets are globally controlled. That’s why there’s a BIS, IMF and World Bank. That’s why every nation’s hedge funds and credit issuance is the same, why the greed was the same, why the sub-prime crisis was the same.
What fuelled the global nature of the misery? Why did a pensioner in Toronto and in Dagenham both simultaneously fail to cover themselves?
Answer that question accurately and you’re close to identifying Them.