The Collapsing Pension System

The UK pension system is on the brink of collapse.

The Bank of England has been forced this week to buy government bonds in unlimited quantities to prevent mass defaults in UK pension funds. The solvency of many major banks is threatened. The pound is falling to historic lows.

The cause is simple. Money is produced from goods and services, which require energy. Energy expansion means more goods, services, and money. Energy contraction means fewer goods, services, and money.

When energy contracts, money has to be withdrawn to preserve the value of all remaining money.

Energy has been contracting for over a decade.

Conventional (i.e. “affordable”) oil volumes began contracting around 2005, triggering the 2008 financial crisis.

This has been compounded by the quasi-religious climate catastrophe movement, which accelerates the withdrawal of the hydrocarbons that billions of humans depend on for food and heating, and on vast quantities of which their contraptions depend to power the necessary mining, refining, operation, maintenance, and endless replacement that their envisioned use entails.

Rather than withdraw money as required by energy contraction and mindless substitution, fake money has been printed for decades on a simply unimaginable scale in an effort to preserve the illusion of solvency against the widening energy/finance system gap.

For example, in the 6 months prior to the global lockdown in March 2020, the Fed was forced to print and inject the equivalent of 40% of US GDP directly into US banks in an effort to stabilise its financial system. Now, the UK is printing apparently unlimited quantities of fake money to delay the collapse of its own pension system.

The news coincides with yet another top climate scientist - this time, Massachusetts Institute of Technology’s Emeritus Professor Richard Lindzen - joining the rapidly growing community of worried Nobel laureate and other distinguished climate scientists sounding the alarm on the climate catastrophist cult.

They warn us that warming is caused by natural factors that dwarf human factors; that warming is far slower than catastrophists predict; that catastrophists’ models are irredeemably inadequate; that CO2, as a plant food, is the basis of all life on earth and recovering from a near-fatal low point; that global warming has not increased natural disasters.

Above all, they warn us that climate policy must respect scientific – and economic – realities.

It’s hard to gauge how many will die from real energy and financial crises created by the fantasy climate crisis. Even in normal UK winters, tens of thousands of cold-vulnerable people die of cold. Even without a financial crash, hundreds of thousands of vulnerable people face unaffordable heating bills and energy rationing under the policies forced on us by catastrophists.

Now we all face wipe out of our savings and pensions.