Before offering avid readers an explanation for the random big number in the title (not Bob Diamond's bonus) it is good to see some stellar results from NewsCorp. Aside from the hacking issues it looks like cable income at Fox / FX plus some strong movies have pushed profits up and seems to validate a content led strategy.
Chairman and chief executive Rupert Murdoch said: "The significant growth we
reported in the quarter in the cable network programming, television and filmed
entertainment segments clearly validates our strategy to develop and distribute
superior wide-ranging content."
That monster number represents £1.1 trillion (I think as I ran out of fingers) which is apparently the size of the UK public sector pension liabilities in 09/10 - they may be even larger now and about the same size as UK GDP !
Once the banker bashing has finished (and they have all left) the new gilded elite may well be those on public sector gold plated final salary pension schemes drifting into a relaxed late middle age after years of strenuous public service. We can be confident they are going nowhere (other than perhaps on a cruise).
A more complicated question is who will pay - perhaps like Stephen Hester they will simply accept a reduction in entitlement even though they have a contractual right..........answers on a postcard.
When we hear about the protection of "vital front line services" are we really hearing about the need to keep pumping cash into those pension pots ?