Jim’s Mailbox

Posted at 4:02 PM (CST) by & filed under Jim's Mailbox.

Hi Jim,

Worth posting for those readers in Alberta that seem to have multiple inquiries into state of affairs in our blessed province.

CIGA Ryan

Challenges facing Alberta’s public sector pension plans

Pension plans around the world are facing challenges because people are retiring early and living longer, investment returns have been lower, and the ratio of pensioners to active members is increasing. Many plans are unsustainable in the long term if changes are not made. In Alberta, our public sector pension plans face the same challenges, which have resulted in funding shortfalls and dramatically rising contribution rates.

The Government of Alberta is proposing changes to improve the long-term financial health of the following public sector pension plans:

the Local Authorities Pension Plan (LAPP),

the Public Service Pension Plan (PSPP),

the Management Employees Pension Plan (MEPP), and

the Special Forces Pension Plan (SFPP).

Together these plans cover public sector employees across the province and have about 200,000 active members and more than 120,000 retirees and deferred retirees.

The Government of Alberta is no longer convinced that we have the right benefits at the right price to attract and retain our future workforce. Total contribution rates for employees and employers in these plans are 25% of salaries or higher and are among the highest in Canada. Despite high contribution rates, assets of $35 billion, and investment returns on par with other large pension plans, these four plans have unfunded liabilities totaling $7.4 billion.

It is not a crisis, but it could become one unless action is taken to set our pension plans on the right course.

More…

 

Shelley,

The Chinese are buying far more than just gold with their US$. Since 2002 China has invested more than US$ 680 billion worldwide, predominantly in energy. They are buying assets across the world with their US$ and will continue to do so as part of their long term plan to become the economic power of the world. I am certain they enjoy buying weakness in gold but it must be remembered that they are not buying gold as a speculation. China understands the power of gold and they are purchasing gold to ensure they have a seat at the table when the ‘Great Reset’ occurs. The Chinese know that gold will be a part of the new virtual reserve currency and they want the Renimbi to be part of the Great Reset too.

Regards,

Peter Mickelberg
Communications Consultant
www.jsmineset.com

 

Lois,

You will not be able to have certificates issued for your money market accounts. The reference we make to certificates generally applies to shares in companies trading on various stock markets. You should be aware of Jim’s view regarding bali ins and the risks involved in dealing with many banks, particularly in the US.

Jim recommends that you seek allocated bullion storage outside of the Western system. To that end he has suggested that Singapore is an appropriate destination. If you are interested in allocated bullion storage in Singapore you can obtain information about the Singapore Precious Metals Exchange from its website at sgpmx.com. You can store your own bullion or coins personally but you should consider the inherent risks involved in that and if you accept those risks and are comfortable with them then it is an option.

In regards to government imposing a windfall tax on gold, that is, of course a possibility. However, it should not deter you from owning the only asset class that provides insurance from the financial mayhem we are about to experience when what Jim describes as the ‘ Great Levelling’ occurs. Only gold will maintain value in the face of the ongoing devaluation of currencies across the world. Gold is insurance against political, economic and currency related crisis and when you look at the world that is all you can see each and every day.

Jim has advised that a hobby farm is a very worthwhile option and clearly it is best that it is closer rather than further away from your home. The important thing is that you have a place to go to that is self sufficient and relatively safe.

Don’t let yourself become overwhelmed by the situation. It is important to think clearly and simply about the circumstances we find ourselves in so that our response is the right one. Jim is providing the warning ahead of time so that we can get our affairs in order and protect ourselves and our families so if you haven’t taken action to GOTS you should do so now.

Regards,

Peter Mickelberg
Communications Consultant
www.jsmineset.com

 

Ajay,

Jim advises that you should contact CNT Depository to discuss your situation.

CNT Depository, Inc.
Ed Lubicich, Director of Vault Services
e-mail: ed.lubicich@cntdep.com
Tel: 508-807-4801
722 Bedford Street, Bridgewater, MA 02324

Regards,

Peter Mickelberg
Communications Consultant
www.jsmineset.com

 

Kurt,

No asset class will be safe from the nationalisation of retirement accounts. The government will not discriminate when it comes to using your assets to pay off Wall Street’s debts. If you haven’t exited your retirement accounts then you must do so before you don’t have the option and you lose all that you have saved. Exiting and using that to purchase a hobby farm along the lines of what Jim has advised is totally in line with the GOTS strategy but doing through and IRA is definitely not.

Regards,

Peter Mickelberg
Communications Consultant
www.jsmineset.com

 

Uwe,

I am sure you have read Jim’s comments concerning the gold share activity on Friday last. Friday was also equity option expiry and on top of that we had a FED mouthpiece suggesting the taper was on, which helped drive gold lower,  despite that not being the case as of last Wednesday. In a financial world where algorithms rule, price chasing both on the upside and the down is the standard practice. The average person is doomed trying to join them so we must do as Jim says and that is to own margin free positions in good quality gold stocks and ignore MSN. If the Indians really do want to sell 200 tons of gold I am sure the Chinese will be willing buyers.

In terms of TA, Jim has provided everything he recommends in his compendiums which if you haven’t already got are available on Mineset.

Regards,

Peter Mickelberg
Communications Consultant
www.jsmineset.com

 

Frank,

Congratulations on your GOTS efforts. Jim speaks to many people but so few have the courage and the foresight to actually take action. Your advice regarding retirement accounts is exactly correct but greed stops people from pulling the trigger. Only those with ‘skin in the game’ like Jim and McEwen are worth listening to, the others are just talkers and anyone fool can do that.

Regards,

Peter Mickelberg
Communications Consultant
www.jsmineset.com