South African billionaire Johann Rupert said the financial crisis may lead to inflation and social unrest as savers find they’re too poor to retire, while pension-fund managers deserve to be jailed for incompetence.
Rupert, speaking at the annual presentation for Cie. Financiere Richemont SA, the luxury-goods company he controls, said he doesn’t see any “green shoots” of economic recovery. He said governments may resort to inflation to reduce the burden of increased debt from stimulus programs, such as U.S. President Barack Obama’s $787 billion package.
“If this thing carries on, my generation will have to work until they are 75,” the 58-year-old Rupert said. Governments are “going to have to find the capital in the markets, which will crowd out the private sector, or they’re going to have to tax the living hell out of consumers, or inflate their liabilities to oblivion. There are not too many other options.”
I will finish by that:
“People should be put in jail for their lack of maintenance of purchasing power in the pensions and retirement funds that they managed,” Rupert said. “People are simply not going to have the retirement funds at their disposal.”
Should we jail incompetent as Mr Rupert is highlighting...I suppose there won't be enough jail...well at least the construction industry will be stimulated...
PS: The Finnish government has changed the rules last autumn concerning Pension Fund liabilities and their solvability level. So let's allow them to lose a little more in the next 2-3 years to come as it is without doubt that real estates and stocks will deflate to level not seen in this current decade.
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