Re: 60 Minutes on State Budgets: The Day of Reckoning Has Arrived (No bailouts! Let the blue states, progressives and their fat cat unions eat cake!)
Take 50% Pension Cut or Risk Losing it All
The city of Central Falls, Rhode Island, population 19,376, currently has a $5 million deficit on a $17 million budget, with an unfunded pension liability of $80 million. The recently appointed receiver of Central Falls, Robert Flanders, has asked police, fire, and municipal retirees to accept a 50% pension cut or risk losing it all if the city files for bankruptcy. With most of these citizens dependant on their pension for the majority of their retirement income, they have a very tough choice to make.
Central Falls is in desperate need of a bailout from the State of Rhode Island, but Rhode Island itself has $10 billion in unfunded pensions and could soon be in need of a bailout from the Federal Government. U.S. states currently have total unfunded pension liabilities exceeding $1 trillion. The only way out of this crisis for all U.S. cities and states is for the Federal Reserve to continue unleashing additional rounds of quantitative easing in order to create massive price inflation.
If the U.S. government wants to avoid the current situation in Europe and not have all highly indebted states that can?t print money begging for bailouts, just like how Greece, Ireland, and Portugal, have been begging for bailouts from the European Union, the Fed needs to create phony nominal GDP growth at all costs. It doesn?t matter how high the Bureau of Labor Statistics? phony CPI rises, the Fed cannot allow GDP to go negative. The Fed is going to do everything in its power to continue creating the illusion of an economic recovery and will not do anything to combat price inflation until the U.S. inflation crisis is the front story on the newspaper every single day. By then, it will be impossible to reinflate the dollar bubble, just like how it was proven to be impossible to reinflate the Real Estate and dot-com bubbles. The dollar bubble is the largest and longest running bubble in world history and when this bubble bursts, the U.S. government will go bust along with the whole entire U.S. economic and monetary system.all/
Take 50% Pension Cut or Risk Losing it All | National Inflation Association Blog
and the sheep still buy bonds, and sell their gold , go figure:doh1