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PENSION CUTS – THE HEADWINDS AHEAD…

General Electric – Cutting Pension Benefits

Pension Headwinds Ahead is the title for today’s post. As most of you know already, many of the largest pensions here in the U.S. are in deep trouble. With under-funded reserves coupled with low interest rates and declining contributions, for many pension funds, the outflow is greater than the inflow.

We first saw the reality of this situation coming to a head back in 2015. Central States Pension Fund (with over 410,000 employees) applied for benefit cuts. (For a sample listing of pension funds that have applied to cut benefits under the Multiemployer Pension Reform Act click HERE.) Today, according to Bloomberg News, General Electric (GE) announced that they are “taking steps to cut the worst pension deficit in corporate America, by freezing benefits for more than 20,000 employees.” If you think this is just an anomaly, think again. We believe this is only the beginning as pension costs continue to rise, and interest rates near their historical lows, this is just the beginning of additional ones to follow.

This situation is very straight forward. The cash outflows are simply greater than the inflows. As fewer people pay into the pension funds and an increasing number of new retirees begin collecting their pensions, the outflow exceeds the inflow. In addition, with interest rates so low, the investment income received isn’t nearly enough to cover the outflows either. It’s a perfect storm for pension funds.

To better prepare retirees relying on fixed pensions, we recommend they fully inform themselves by taking the following action steps:

  • 1st – Check the status of your pension fund. Do your research if their pension fund has applied for benefits cuts under the Multiemployer Pension Reform Act.
  • 2nd – Meet with your accountant and financial adviser to proactively plan, budget, and make any investment re-positioning for possible pension cuts in near to medium future.
  • 3rd – Reduce your debt…period. Streamline and cut unnecessary expenditures. Seriously consider downsizing your current lifestyle to better position yourself for any unseen pension reductions in the future.

It’s far better to develop a plan and implement now, rather than waiting and being forced to do so at a later time. Remember, it’s up to you to do your own research, then make better informed decisions.

GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services to help business professionals successfully manage and grow their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development & management solution), designed to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

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The B.I.S.’s Perspective – On Cryptocurrencies & Bitcoin

An ARTICLE posted on Bloomberg and on the Bank for International Settlement’s (BIS) website states that current cryptocurrencies (like Bitcoin) are not ready for prime time…  In fact, the BIS stated that not only is it not currently a sustainable global option for banking and financial market transactions, but in fact, it could “break the bank”!  The BIS provides an interesting perspective from within their own walls on cryptocurrencies that on the whole, we agree with.  Listen to this INTERVIEW segment with the BIS’s Hyun Song Shin, as he speaks about cryptocurrencies addressed in Chapter V of the Annual Economic Report 2018.  Mr. Shin simply and clearly articulates some of the key flaws in current cryptocurrencies, and in particular addresses some of the technology platform issues behind Bitcoin and other cryptocurrencies with which they are currently built on.  Please read the above referenced article and interview.  Once you have done so, we would like to share with you two additional perspectives…

PERSPECTIVE #1 – At GMS Business Consulting, Inc., we have been convinced for quite some time that cryptocurrencies are the future currency for worldwide banking and financial transactions.  HOWEVER, they will NOT be built on the distributed ledger technology of Blockchain technology.  It is well known in the technology world that blockchain technology, when used for massive amounts of data transactions like cryptocurrency, is not sustainable.  Hashgraph technology however is sustainable…This is simply a fact.  (You may refer to an earlier post on our blog about Blockchain vs Hashgraph technology.)  Blockchain is yesterday’s technology, but in our humble opinion, it is not the future technology, at least with regards to cryptocurrencies and other heavy data intensive needs.  Blockchain has proven itself to NOT be a sustainable technology for cryptocurrencies.  The FUTURE technology to be used in its place is called Hashgraph technology.  It is an extremely powerful and sustainable technology, with no miners needed, it’s very robust, scaleable and secure…all of which meet Mr. Shin’s criteria for a sustainable technology to meet the needs of cryptocurrencies and their use in replacing fiat currencies.

PERSPECTIVE #2:  We believe cryptocurrencies will NOT be unregulated.  As we’ve seen with all the current cryptocurrencies, they are extremely volatile, and are subject to manipulation, hacking etc. (although current fiat currencies are also manipulated).  One of the key issues why cryptocurrencies will not be controlled “by the people” to “run-free” so to speak, is that the banking and financial powers, regulators, governments, and central banks of this world won’t allow that to happen…period.  Do you really think these regulating powers would simply say, “Wow…we’ve had a good run for all these centuries, and made a lot of money too…we’ve also controlled and influenced world governments and economies too, but now we’ll let “the people” take over the banking and financial systems.”  Fat chance of that happening.  If cryptocurrencies are to replace fiat currencies (which we believe it will), it will ultimately be controlled and regulated by the IMF and the BIS in order to become a worldwide acceptable, regulated and usable currency that will use Hashgraph technology, not Blockchain technology.  (Once again, we refer you to our earlier POST regarding the differences between these two technologies.)

Remember, do your own homework by researching both these forms of technology, then you’ll be better informed to understand why the BIS is correct (in our humble opinion) on its view that current cryptocurrencies and the technology platform behind them, are unsustainable.

GMS BUSINESS CONSULTING – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development solution), designed to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

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HASHGRAPH vs. BLOCKCHAIN

Swirld.com

Hello Everyone!

Today we’re going to share with you a technology that has emerged that in our opinion will replace Blockchain technology.  It’s called Hashgraph.  Listed below are several important interviews / discussions on this new Distributed Ledger Technology (DLT).  We would highly recommend you listen to these and get familiar with this technology, as this is (in our opinion) going to be the new technology platform standard for the foreseeable future.

Over the past few months, we have learned through our research, that Bitcoin is unsustainable in its current platform using blockchain technology.  The experts below can explain the reasons why far better than we can.  So we encourage you to be patient, listen, and learn just as we are doing and will continue to do.  This first informative VIDEO is presented by Dr. Steve Pieczenk (MD and PhD who also  served under 5 U.S. President Administrations in the State Department), articulates quite clearly in  5-6 minutes “why” Bitcoin is not sustainable as a global currency:

This second video is a little lengthy yet very well done, more detailed, and begins with presenting the promises of Bitcoin and blockchain technology.  However, as this experienced investor/researcher discovers in furthering his research, there are serious limitations with Bitcoin and the Blockchain technology platform it’s based on.  Take a listen:

So, you want to know more about Hashgraph?  Below are several discussions and sources to listen to and research.  The founders and “Heavy Hitters” and master minds behind this technology of Hashgraph, are Leemon Baird & Mance Harmon.  Together they formed  SWIRLDS.  Check out their website and interviews available online.

This discussion below is with a group of Swirld’s key, yet few employees in an event in late 2017 hosted by Demetri Kofinas of Hidden Forces.

Below is Leemon Baird, the developer of Hashgraph and Co-Founder of Swirld, talking about this next evolution of technology that will revolutionize cryptocurrencies, the internet and the way we use technology in the world today and in the future.  Take a listen:

Below is another presentation on the Hashgraph technology by Leemon Baird PhD.

We hope you will find this post helpful and insightful.  This technology is extremely powerful with many, many applications and implications on how we are going to exchange, share and manage data and information in the future.  As we always state, do your own research and analysis.  Don’t rely on what we say or present.  We’re simply trying to bring to light information that we find to be of interest and value, and want to share with our clients and readers.

GMS BUSINESS CONSULTING – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development solution), designed to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15