Neil Wilson (he seems to be back again) has this comment on Bill Mitchell’s post
“We need the state to bail out the entire nation”:
There’s also another unmentioned consequence of the neoliberal blinkers – QE’ing government debt removes income from the private sector. How are pension companies going to pay pensions without it?
Currently we are seeing dividends cancelled, rent payments withheld, government debt bought up – driving down yields and “compulsory pension contributions” (aka tax collected by the private sector to pay pensions) disappearing as wage flow collapses.
How long before there is a crunch in the pension payment system? How long can they handle new vesting – when there is a crunch lots of people decide to retire?
The state is going to struggle to get ‘volunteers’ to work unpaid if the pension payment system goes belly up…
Evocatively Ambiguous 