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Monday, July 03, 2017

America's Pension Bomb: Illinois Is Just the Start

We've written quite a bit over the past couple of months about the pending financial crisis in Illinois which will inevitability result in the state's debt being downgraded to "junk" at some point in the near future (here is our latest from just this morning: "From Horrific To Catastrophic": Court Ruling Sends Illinois Into Financial Abyss).

Unfortunately, the state of Illinois doesn't have a monopoly on ignorant politicians...they're everywhere. And, since the end of World War II, those ignorant politicians have been promising American Baby Boomers more and more entitlements while never collecting nearly enough money to cover them all...it's all been a massive state-sponsored scam.

As we've noted frequently before, some of the largest of the many entitlement 'scams' in this country are America's public pension funds. Up until now, these public pension have been covered by stealing money set aside for future generations to cover current claims...it's a ponzi scheme of epic proportions...$5-$8 trillion to be exact.

Of course, the problem with ponzi schemes is that eventually you get to the point where the ponzi is so large that you can't possibly steal enough money from new entrants to cover redemptions from those trying to exit...and, with a tidal wave of baby boomers about to pass into their retirement years, we suspect that America's epic ponzi is on the verge of being exposed for the world to see.

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4 comments:

Steve said...

With back then interest rates around 6-12%, everything would have worked.

All of a sudden, we got to ZIRP>

So, the fed printed the "difference"

But, everybody knew, that wouldn't work, but it kicked the can down the road...

Thank God we got Trump!

We may have just thwarted off our next Civil War with him, because if not, it was a sure thing,

Thank you voters for Donald Trump!!!! I LOVE YOU!!!!!!!

Anonymous said...

Illinois has two problems.
1. They can't cover current expenditures with current tax revenues.
2. They can't cover future liabilities with the current policy.

The HMFIC Michael Madigan refuses to change on 2 and want to raise tax rates for 1

It is hobbling the economy of Illinois just to kick the can down the road some more.

Madigan is a stupid dumbocrat owned by the unions.

Anonymous said...

How will Mr. Trump reign in the Central Bank?
Isn't Mr. Kushner a part of the banking elite?

Anonymous said...

9:30
Our fabulous POTUS and his son-in-law will turn the tables on the bankers.
Just wait and see.
Go Trump!