Germany Pensions System Crisis

The pension system in Germany has serious shortcomings. (Photo: dpa)

The German publication DWN has come out and warned that the German Pensions system is collapsing. They wrote:

The core problem of the German economy and society is miserable demography. A positive development, namely the increasing longevity of the population, is an extremely negative groundbreaking, namely a small number of children. This is reflected in one of the lowest birth rates in the world – and this has been the case for decades. The record-breaking birth rate is by no means rooted in a biological, but in deeper social causes and inadequate policies at different stages. One consequence is a pension system that is not sustainably financed , because the ratio of contributors and receivers will drastically deteriorate. 

The very design of pensions has been universal. They assumed that population would always increase and thus pensions would be funded by taxing the current generation to pay for the previous. The declining birthrate and the increase in longevity has blown out the pensions systems on a global scale. In the case of Germany, this is a primary reason behind accepting refugees with hopes of making up the decline in the birth rate. The problem has been the lack of a desire to assimilate when we are looking at 70% of refugees are males and are really just economic migrants lacking skills and language.

Latest Posts

Market Talk – March 14, 2025

ASIA: The major Asian stock markets had a green day today: • NIKKEI 225 increased 263.08 points or 0.72% to 37,053.10 • Shanghai increased 60.84 points or 1.81% to 3,419.57 [...]
Read more

Happy Pi Day

COMMENT: Marty, Happy Pi Day. I think it was inevitable that you would discover the relationship between Pi and the economy and the markets. I found it to be fate [...]
Read more

Several Volcanoes in Italy Coming Alive

COMMENT from Italy: Dear Mr Armstrong, I just read your topic on volcanoes and cooling weather Please note: Etna is erupting, slowly Stromboli had a small eruption last year with [...]
Read more

Volcanoes & the Future

QUESTION: Marty, Socrates is just amazing. You have been correlating agriculture and climate as volcanoes that produce major global cooling events. Well, just an observation: Many volcanos are becoming active [...]
Read more