About Me 0119: Making Money Uk

While
October was positive for FTSE 100 UK pension schemes, with the overall
deficit reducing by £11.0bn to £43.5bn, it did little to improve the
risk picture, according to the first issue of PF Risk Report.

The
new publication from PensionsFirst, which provides advanced risk
management and advisory services to the defined-benefit pensions
industry, said that at the end of October, the one-month 95%
value-at-risk figure on an IAS19 basis was £25.4bn.

This
means that in November there was a 1-in-20 chance that the IAS19
deficit could increase by £25.4bn or more - and the expectation that in
one of the next twenty months it will. "The corresponding VAR figure at
September month-end was £26.6bn, so the improved deficit position
changed little from a risk perspective," commented the report.

The
PF Risk Report breaks down pension risk into its key components. On an
uncorrelated basis, interest-rate risk is the largest risk factor,
contributing £17.8bn to the VAR, closely followed by equity risk, which
contributes £15.7bn. The report also focuses on inflation, FX, credit
and property risk exposures, while ignoring longevity, which is a
genuine long-term risk exposure but has negligible volatility in the
short term.

The report illustrates the impact of the key
factors that could cause variation in deficits. For example, a 20%
decrease in equities would increase the aggregate deficit by £34.2bn
and a 1% increase in long-term inflation would increase the deficit by
£60.8bn. The two events combined would increase the deficit by almost
£100bn.

"The simple fact is
that many UK companies (not just those in the FTSE 100) have
significant unhedged exposure to financial market volatility through
their pensions schemes", the report stated.

The report
puts into context the expectation that the monthly accounting deficits
of the FTSE 100's UK pension schemes will move by £25.4bn at least once
in a two-year period by underlining the fact that in August 2010 the
accounting deficits increased by £20.8bn, driven primarily by a 60bp
fall in interest rates. "And it is important to note that while...such
large monthly movements can be reasonably anticipated, there is also
the potential for much more extreme outcomes," the PF Risk Report concluded.

It's
not just UK companies that have significant unhedged exposure to
financial market volatility through their pensions schemes. The problem
is widespread and as the report concludes, there is also potential for
much more extreme outcomes.

"We're not swimming in money, we're drowning in debts," he told the Bundestag.

Actually, you are both. Money is Debt. Money is created as debt with interest. The more debt you have, the more money you have. It's the ultimate short... aka highway bankster robbery of the value from the economic and financial systems of the world.

Why aren't the lot of them, about 1000-2000 people, maybe, that continue to perpetrate this crime against our Constitution, in jail? America is the most prison-happy society in the world... only, if these criminals were locked up then half the current prison population would be released when alcohol and marijuana are equalized. (BTW, tobacco and alcohol are the 1 and 2 "gateway" drugs). so, halve the prison budget and start to fix the ginormous budget holes at every level of government. Who benefits from subsidizing the "drug war"-prison-security-industrial-complex? The corporations that lobby against sane laws benefit.

Maybe then we can stop these insane wars that are decreasing our national security and really just perpetual corporate handouts at the behest of the lobbyists and campaign contribution bribes, which are really just recycled tax payer money. Are we really paying taxes for this system of non-representation?

Nothing about our political system is really functioning due to the corruption of the Constitutional right of Congress to issue money without debt and in service to no one but ourselves. Corporations really have taken over the country. Sad day for us.

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