Monday, August 29, 2016

A PENSION IS A PROMISE, THAT MUCH IS TRUE.
THAT PROMISE WAS GIVEN BY, & IS OVERSEEN BY, POLITICIANS & BANKERS.
NEED WE EXPLAIN THE PROBLEM HERE?
America: Welcome To The Third World:
Pensions Overwhelm Public Services
"Europe, Japan and the U.S. are making essentially the same mistakes as Venezuela’s past and present governments .. Like most of the rest of the formerly-rich world, Chicago ran out of money years ago and has been more-or-less secretly borrowing to cover the shortfall. Its public sector pensions for instance, pay retired workers far more than the city can afford – but are legally uncuttable according to a recent court ruling .. The result: a steady march down the affluence ladder towards a living standard that would be familiar to people in Brazil or India .. Lots of other developed-world cities, states and countries are in similar predicaments, mostly because previous leaders over-promised on pensions that can’t be paid without skimping on everything else .. Life will get a lot harder for millions of people who are unprepared for it .. It will, in short, become extremely unpleasant for the developed world’s former middle class. Then will come the civil unrest, and just like that your neighborhood looks like those Argentina videos .. One of the laws of public life is that once created, a program gains beneficiaries who will defend it to their dying breath. So debt and unfunded liabilities keep expanding until the bill comes due."
- John Rubino*
LINK HERE to the commentary

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