9 I. INTRODUCTION O ur planetary governance and financial system currently operates significantly outside of the law. Whether the cost of war, organized crime, corruption, environmental damage, suppression of technology or secrecy, this lawlessness – and the lawlessness it encourag- es in the general population – represents a heavy and expensive drag on all aspects of our society, our economy and our landscape. The underfunding of pension funds in the United States is a symptom of that drag. It is not a self-contained crisis. We are told that we can fix the pension funds by saving more – such as by increasing the contribu- tions from beneficiaries and/or taxpayers. As por- trayed in our graphic for the cover of this 2017 Annual Wrap Up, this is the equivalent of trying to fill a milk bucket by milking more cows when the problem is that there is a hole in the bucket. Why put more milk in the bucket until the hole is fixed or the farmer gets a new bucket? If my subscribers and clients are representative, many people in the US general population – either as beneficiaries or taxpayer – are reluctant to invest more money in the retirement system. Many do not trust it. • They do not trust pension fund governance and management to treat beneficiaries’ inter- ests as primary. • They do not trust money managers to invest wisely. They believe Wall Street promotes fraudulent securities. • They do not trust central banks, the federal government and some state and local govern- ments to behave responsibly. • They are concerned that laws and regulations will be changed in an unfavorable manner – that their pension will become the financial equivalent of a “roach motel.” The money goes in, but it does not come out. • They feel cheated by public agencies that en- gage in political patronage, for example, that enable workers to game their final working year or two (through overtime, extra shifts, undeserved last-minute promotions, and other manipulative gimmicks) to retire with pension payments that are as much as double what they are rightfully entitled to in the absence of such gimmicks. Under these circumstances, the decision to avoid increased investment in pension plans or retire- ment vehicles may, in fact, be a wise decision, albeit it makes the underfunding “crisis” worse. Addressing pension fund underfunding in the United States will require ensuring integrity in pension fund governance and investment policies where it has been eroded. It likely will also re- quire the successful return to a model of house- hold and family wealth accumulation where indi- viduals and families control the governance and management of their assets instead of depending on centrally controlled systems. Family wealth has the distinct advantage of returning control of investment decisions to individuals. However, this is hardly what the US establishment wants. The centralization of power depends on the increasing control and concentration of family financial capital. Whichever path we take, the success of our pen- sion fund and retirement assets and their impact on financial markets and society will necessitate addressing the integrity of governmental and cor- porate governance in the global financial system. This is the same point that we repeatedly make on the Solari Report. Our economy is a dynamic ecosystem. We cannot isolate one part and “fix it.” If there is a fundamental and systemic imbal- ance, such as corruption or lawlessness, it must be dealt with on a crosscutting basis. If our political process delivers profits and a cheap cost of capital for insiders, while considering the general population expendable, the solution “Money is and always has been political. Our central concern should not be with [money’s] technology but with the political and legal framework with which it operates.” – DR. REBECCA L. SPANG “Many people in the US general population – either as beneficiaries or taxpayer – are reluctant to invest more money in the retirement system. Many do not trust it.”