Just because a Ponzi scheme is run by a government doesn’t mean it won’t collapse.
The situation in Kentucky serves as a dire warning about larger pension systems including Social Security.
What Kentucky is currently facing in like a bank run. When people hear that a bank is failing, they all scramble to get their money out before it goes bust. This snowballs and the bank runs out of cash that much quicker.
Kentuckians are retiring in droves, hoping to get a piece of the pension funds they were promised. Worried that the money might not be there in a few years, they are opting to start collecting now, lest they get nothing. But this is causing a run-on-the-bank effect. The pension system is collapsing that much quicker.
Politicians have long kicked the can down the road. The idea is that there will always be a future generation, unborn children to pay for the promises they make today. There will always be new suckers to pay for their unfunded liabilities.
But the bubble bursts. Unless a population grows exponentially, this cannot work. That is why it is a Ponzi scheme. There’s always a bottom layer that holds up the rest of the pyramid.
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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
1 comment:
FOOLS.
They actually believe that politicians, one day, won't just decide that the pensions can't be paid and offer them 5 cents on the dollar.
They VOTED these liars in office and CONTINUED to vote for them.
Might as well just hand them a knife so they can cut your throat for you, too.
TWO SETS OF LAWS..
I guarantee --- the POLITICIAN'S pension is full funded and will NEVER be touched.
"We, the people" sell our house because after 30 years of working because taxes, costs of living, and pension cuts have driven us to the brink of bankruptcy, while the slimy slugs you continued to elect (they promised you heaven on Earth!!) buy ANOTHER house on the Florida coast.
You can't stop cheering.
WTF???
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