The Pension Bubble: How The Defaults Will Occur

``Another tactic used by government officials and pension fund managers to avoid paying out pensioners is to inflate away the problem... Here is how it works: governments promise pensioners that their benefits will be indexed to protect beneficiaries against rising prices. But they then use selected or massaged statistics to back out.... In Canada, federal (CPP) pension plan recipients will see their benefits rise by 1.3% during 2016. But food prices, according to Statistics Canada, rose by 3.7% last year. House prices rose by 12% up to December 2015 according to the Canadian Real Estate Association.'' -- Similar situation in the US...