Bank of England Stepping in to Bail Out UK Pension Funds

The United Kingdom's debt market and the fiat British Pound took further historic losses this past week as the pound spiked downwards to an all-time low versus the fiat US dollar. The Bank of England had to intervene and begin buying its debt as it faced systemwide pension defaults if it had not done so.

Kerrin Rosenberg, Cardano Investment chief executive, stated, “If there was no intervention today, gilt yields could have gone up to 7-8% from 4.5% this morning, and in that situation, around 90% of UK pension funds would have run out of collateral. They would have been wiped out.”

As the fiat Federal Reserve continues hiking rates faster than at any point in the last four decades, it seems like a weekly news item that something blows up somewhere in global financial markets.