US Embassy Evacuated, Nicaragua Unrest/Economic Crisis

There is a lot going on in the world right now - the news about Nicaragua was brand new to me, although it has been going on since last week. It sounds like it is getting worse by the day...



Recent changes in Nicaragua's social security system have triggered widespread rioting in the Central American country.

Riots have been going on for 5 consecutive days, and have continued to gather momentum since Day 1. Many of the rioters are pensioners, outraged at the news that the government will be raising the amount workers must contribute, as well as cutting benefits.

Pension crises are not isolated to Nicaragua, as many states in the US are also suffering from mismanagement of pension funds. It is my belief that we are witnessing the initial stages of breakdown in our current (global) financial system.

Nicaragua is the poorest country in Central America, and already has widespread poverty and unemployment (information taken from the CIA World Fact Book).

BBC: "Nicaragua riots: Relatives of US embassy staff told to leave"
Link: www.bbc.com...

BBC Excerpt:

The state department has ordered relatives of US government employees based in Nicaragua to leave the Central American country.

USA Today: "U.S. pulling staffers out of Nicaragua as riots, looting intensify"
Link: www.usatoday.com...

USAToday Excerpt:

The violence was sparked by a government plan to overhaul its pension system. Last week, President Daniel Ortega approved a plan to raise contributions from workers and their employers to help fund the country's struggling pension system. The plan also called for cuts in benefits.

(If interested) More information on the Nicaragua economy from the 2018 World Fact Book by the Central Intelligence Agency: theodora.com...

a reply to: FamCore

The world is leveraged on credit right now. To many bankers taking main street money to Wall street.

They keep throwing band aids on it, but one day that house of cards will fall. Unfortunately it is the layman who will foot the bill.... Again.

Coming soon to a state near you

I have been talking to cott council about it here in my town the local pensions for all new hires is now 401k

Dont worry everything is fine cause the DOW

Just buy physical assets that produxe value with your money while you still can

a reply to: FamCore

I am currently living in Nicaragua, and things here are very unsettled at this time. There has been wide spread violence and looting in many parts of the country, with the capital of Managua being the most affected. For the past three nights there have been violent conflicts between police and protesters, and most of us expats are keeping a low profile and stocking up on non-perishable foods and water.

Tonight, all is quiet...at least for now, but the situation is so volatile that it may change at any moment.

So, for tonight... we sleep. but not too deeply.

The entire pension system is unsustainable and must be done away with at some point. It isn’t really fair to the workers who paid into this system in good faith and now are having the system pulled out from under them.

When I first started working I was paying into a pension system, but in the early nineties it was converted over to a 401k with equivalent assets being deposited on my behalf.

Sadly someone is going to get screwed. It isn’t an easy situation and I don’t have all the answers. Perhaps convert those who are still working into a 401k and let the current pensioners keep their benefits.

The state of Kentucky is going through this right now with their teachers. It has to happen at some point so I suppose do it fast and minimize the pain.

thanks for sharing. our 'news media' is too busy covering stupid stuff to tell us about this sort of thing.

seems like the whole world is anxious. those who have are afraid of losing what they have. those who have not, want.

a lot of us work for years dreaming of that comfortable retirement, and if that dream is threatened we feel very cheated, especially as the elite continue to get richer and richer.

I'm guessing Nicaragua is still better off than Venezuela, which really is a basket case.

I've just come across this, which seems relevant;

Nicaragua's President Ditches Pension Cuts After Dozens Killed in Nationwide Protests

[...] The government argued welfare changes are needed to bolster Nicaragua’s finances, and Ortega said talks would be held to draft a new plan to strengthen the social security system.

But the government was stung by the protests, which one human rights group said had taken at least 25 lives. Stores in Managua were looted over the weekend.

a reply to: FamCore

It's bad there right now. I talked with a friend/customer of mine that lives in the heart of where the protesting is taking place. He told me everything is closed, people breaking into homes and businesses and multiple people shot dead in the streets. He also told me that he sat by his front door all day with a shotgun to help protect his family.

No surprise. It's the poorest country in Central America and 2nd poorest in the hemisphere after Haiti.