Is Austerity Coming To Kansas? State to Issue $1.5 BILLION Debt to Bail Out Pension Fund
by Rory, The Daily Coin What happens when a person has a debt that can not be paid? Well, you go bankrupt. If you are a nation state, like Greece, and you have been straddled with debt from a small group of criminals, like the Troika (ECB, BOE and IMF) you have a couple of choices. You can allow the criminals to steal everything your country has that is valuable or you can stand up to them like Prime Minister, Alexis Tsipras and Finance Minister, Yanis Varoufakis have done and begin making demands. If you are the State of Kansas in the United States, well, you issue more debt to pay off the old debt and set policies based on hopes and dreams. The State of Kansas is setting in place what very well could be a go-forward model for the other states that are behind in there pension fund obligations. Dave Kranzler, Investment Research Dynamics, brought this to my attention on the day this story broke. For the most part this story has been overlooked by the media. Dave seems to believe, and I agree 100%, this situation holds huge implications for a great number of states and, more importantly, state pension funds. What could happen is the people – non state employees – could be “on the hook” for the pension funds of the state employees!! Doesn’t that sound fair and equitable to you? Not only does your labor, currently, buy food, phones, health care and lottery tickets, for people that either can’t find a job or are not looking for a job, your future labor may very well fund the pensions of people that picked up your garbage, served as police officers or any number of civil servant positions that are currently on the government dole. Illinois, Colorado, Michigan, California and a host of other states pensions are underfunded. What that means is the people that have paid into their pension fund all their working lives may wind up with nothing. If you don’t believe me, ask the good people of Detroit who are currently receiving .10$ on the dollar. And let’s not forget that in Detroit since they filed for bankruptcy the banks get paid first and currently, the banks are receiving north of .50$ on the dollar. What’s wrong with this picture? So, as you see, this new ponzi scheme devised by the State of Kansas will pile even more debt obligations on top of their current debt obligations that they can not afford to pay!! Sounds like the very definition of a ponzi scheme to me. Give this a listen and allow Dave and myself to bring it down and shed some light on what could be coming out of your pay check very soon.