Truss Mugged Millions of Pensioners Who Will Now Live and Die in Abject Poverty
Dr Vernon Coleman
The obscenely reckless mini budget introduced by Kwarteng, the most idiotic buffoon in British political history (aka Twat of the current Century and the last one too) was not dreamt up without the approval of that woman Truss.
And even though the budget has been largely reversed (except, apparently, for lifting the cap on bankers’ bonuses) the damage has been done.
It is customary for pension advisors to recommend to those in their 50s or 60s that they put their nest egg into Government gilts.
Traditionally, Government gilts are the safest investments anyone can buy. Rock solid. Secure. Unlike shares, the money is safe. That’s why pension funds are put into gilts. It’s why investment advisors recommend them to careful savers who don’t like taking risks.
Truss’s budget (and let’s be honest – Truss was standing behind Kwarteng and working his lips) has destroyed the value of Government gilts. Many gilt funds have dropped 30-50%.
What that means in practice is that pensions could have halved in value.
The 60-year-old who has worked all their life, saved cautiously, and hoped for a privately held pension of, say, £10,000 a year, to supplement the miserable State pension, will now, instead be lucky to get £5,000 a year.
That’s the difference between a week’s holiday in Skegness and a day out on the bus. It’s the difference between three meals a day and two meals a day, if you’re lucky. It’s the difference between being chilly and being freezing cold in winter.
Are the gilts going back up to the price they were?
Probably not. The situation was made infinitely worse by reckless techniques used by pension companies who fiddled around with liability-driven strategies (LDIs) and inflation rate hedges and turned an incredibly safe investment into an each way bet on a three legged horse in the 3.30 at Newbury.
The result is that millions of future pensioners are going to live out their retirement years in abject poverty. And nothing is now going to change that. The damage is irreparable. The hedge funds and the currency dealers have tasted blood. The mainstream media has ignored this disaster. They probably don’t understand, they certainly don’t care and anyway they’re under instructions to hide the truth.
Oh, and who do you think has been buying the heavily discounted gilts being dumped by the pension funds? Goldman Sachs, that’s who. You can always rely on the `World’s Worst Bank’, the vampire squid on the face of humanity, to be there when there’s blood in the water and widows, orphans and pensioners are the ones who are bleeding.
The Government will provide subsidised gas and electricity for hedge fund billionaires and wealthy royals. But they’re doing nothing to help pensioners whose lives they’ve ruined.
There are only two explanations for all this.
Either Truss is the most stupid woman on the planet.
Or she is the most wicked woman on the planet.
Either this further destruction of the economy was an unhappy accident – a result of ignorance, arrogance and stupidity. Or it was deliberate – part of a plan to destroy the economy.
You know what I believe.
Oh and, by the way, you needn’t worry about Truss and Kwarteng and the bloodless cretins at the Bank of England: they’ll all receive massive, inflation proofed pensions paid by us.
How much longer are people going to put up with being treated like this?
Vernon Coleman’s book `Moneypower: The secrets of power over money and the essential principles of macro investing’ is available on Amazon as a paperback and an eBook.
Copyright Vernon Coleman October 2022