In The News Today

Posted at 5:35 PM (CST) by & filed under In The News.

My Dear Pensioner,

You must face the absolute and incontrovertible fact that you are going to be redundant from the majority of your pension, left out in the cold to starve and die, thereby reducing the need of funds by social security, medicare and your pension company. If you are not worried you simply are in total denial.

Do not even think about retirement. If you are retired think about a job. Those that will make it through this experience alive and sane are the already subsistent and those so poor now that they are used to it.

Jim

Major UK Pension Fund Slashes Benefits As Funding Crisis Spreads
Tyler Durden on 04/26/2016 04:00 -0400

As we continue to cover the pension crisis that is unfolding in the United States (recently here and here), it is important to remember that these problems are not unique to just the U.S.

One of the largest educator pension funds in the U.K., the Universities Superannuation Scheme (USS) is implementing significant changes to the plan benefits as it becomes increasingly under-funded, just like its peers in the United States. The changes are drastic, and are meant to keep the fund solvent in order to at least pay some benefits rather than none over time. The plan represents 330,000 members across 400 institutions, according to its website.

The changes were foreshadowed in 2014, when in discussing the funding issues, the USS said “this means it is likely that, given the increased cost of providing future pensions and the need to deal with an increased deficit, higher contributions and/or other responses will be required.”

Upon the completion of the 2014 actuarial valuation, the first of those “other responses” was for the fund update its deficit recovery plan to include employer’s contributing 2.1% of salaries toward the deficit over a period of 17 years.

Following completion of the 2014 actuarial valuation, and further consultation with Universities UK (as the representative body for the scheme’s sponsoring employers), the trustee has updated its recovery plan for addressing the scheme’s deficit. The updated recovery plan requires employers to contribute 2.1% of salaries towards the deficit over a period of 17 years. The trustee has extended the period of the recovery plan following an extensive piece of work, undertaken independently, on the financial strength of the scheme’s sponsoring employers (which is generally referred to as the employers’ covenant). The conclusions from that work confirmed the trustee has reasonable visibility of the ongoing strength of the covenant over a period of 20 years.

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Bill Holter’s Commentary

Many readers who have followed my work know that my wife Kathryn began painting just over three years ago. Her learning curve has been simply astounding. Kathryn learned two weeks ago she was judged into the Pastel Society of America on her first try. The previous week, she competed in the Austin Pastel Society’s annual juried competition where she won Best in Show and People’s Choice awards competing against over 100 entries. Attached is a photo of her with her portrait “Commanding Presence”, this was only her fourth portrait and had just two years’ experience when she did it. Please expand the photo to see the incredible detail! Her work can be found at http://www.kathrynholter.com/

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Bill Holter-Without Price Suppression Gold Would be $5,000 to $10,000
Greg Hunter

 

Jim Sinclair’s Commentary

If your road to safety sits on the internet you better read the following.

MSM made a big thing out of the theft of almost $100 million but kept the fact that it was from the Swift money transfer system quiet.

Those of you dependent on computer system financial entities to get through the crisis to the other side are really bonkers. Please do not email the name of the internet company you are using. My comment covers everything and anything on the internet. You think Swift did not protect themselves to the limits of tech know-how? They still received a great royal screwing.

Swift: fraudulent messages sent over international bank transfer system
World money exchange tells 11,000 financial institutions to update their software after US$81m was stolen from account of Bangladesh central bank
Tuesday 26 April 2016 02.15 BST

Swift, the global financial network that banks use to transfer billions of dollars every day, has warned its customers it is aware of “a number of recent cyber incidents” where attackers had sent fraudulent messages over its system.

The disclosure came as law enforcement authorities in Bangladesh and elsewhere investigated the cyber theft of US$81m (£55.9m) from the Bangladesh central bank account at the New York Federal Reserve. Swift has acknowledged the scheme involved altering Swift software on Bangladesh Bank’s computers to hide evidence of fraudulent transfers.

Monday’s statement from Swift marked the first acknowledgement that the Bangladesh Bank attack was not an isolated incident but one of several recent criminal schemes that aimed to take advantage of the global messaging platform used by some 11,000 financial institutions.

“Swift is aware of a number of recent cyber incidents in which malicious insiders or external attackers have managed to submit Swift messages from financial institutions’ back offices, PCs or workstations connected to their local interface to the Swift network,” the group warned customers.

The warning, which Swift issued in a confidential alert sent over its network, did not name any victims or disclose the value of any losses from the previously undisclosed attacks. Swift confirmed to Reuters the authenticity of the notice.

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Bill Holter’s Commentary

The $64 trillion question is this: are the Saudis selling oil to China for yuan or dollars? A very important question with probably a quite obvious answer!

Saudi Spot Oil Deal in China Seen by Citi a `Dramatic’ Shift

April 25, 2016 — 10:27 PM MDT
Updated on April 26, 2016 — 3:06 AM MDT

Saudi Arabia made its first sale of oil to a small, independent Chinese refiner. What’s more significant to markets is that the world’s biggest crude exporter broke from its usual practice of selling via long-term contracts, according to Citigroup Inc.

The world’s biggest crude exporter sold a spot cargo to teapot refiner Shandong Chambroad, said people with knowledge of the deal who asked not to be identified as the information is confidential. The 730,000-barrel shipment is expected to load in June from state-owned Saudi Arabian Oil Co.’s leased storage tank in Japan.

“News that Saudi Arabia is selling a cargo on the spot market to Asia may mark the turning of a dramatic new chapter in the Saudi playbook,” the bank’s analysts including New York-based Ed Morse said in a April 25 report. “What is unusual is that the sale is spot rather than the initiation of a new term contract. Spot sales are about the only way the Kingdom can gain new market share in a world in which chunky buyers are interested in securing incremental purchases via spot rather than term arrangements.”

Oil Politicization

Brent crude is almost 40 percent lower than in November 2014, when Saudi Arabia led a decision by the Organization of Petroleum Exporting Countries to keep pumping to defend market share in the face of swelling global inventories. Aramco will complete the expansion of its Shaybah oilfield by the end of May to maintain the level of its total production capacity, two people with knowledge of the plan said this week. This summer, the Kingdom may be targeting an additional 500,000 barrels a day of sales, boosting daily production to 11 million barrels as power-generation demand peaks, Citigroup estimated.

Saudi Arabia’s output reached a record 10.57 million barrels a day last July, helping to send Brent lower for a third year. Prices rallied from a 12-year low in January amid the potential for agreement between major oil producers to cap output. Futures for June settlement on the London-based ICE Futures Europe exchange traded up 0.5 percent at $44.70 a barrel at 4:54 p.m. Singapore time.

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