Despite Bailout, Pension Tsunami Threatens to Crush US
Despite Bailout, Pension Tsunami Threatens to Crush US By Alex Newman for The Liberty Sentinel
Support The Daily Coin
American taxpayers are going to be completely destroyed by government-employee pension plans if drastic reforms do not happen–and soon.
The tax-funded pension plans of government employees are a ticking nuclear time bomb that threatens to blow the American taxpayer to bits, along with the economy. It may already be too late to stop it. And bailouts from a broke federal government will only make it worse.
Consider that even before the current crisis melted the economy, just state and local public pensions were facing a $5 trillion shortfall, according to a study by the Stanford Institute for Economic Policy Research. Total assets were about $4.3 trillion.
For perspective, Social Security, which serves everyone else — the other 83 percent of the population — has less than $3 trillion in assets.
Even if it were possible, having the broke federal government bail out these plans — concocted by government-employee unions and the political hacks they purchased — will not solve the problem. In fact, bailouts would only make everything much, much worse.
Obviously, the feds and the Federal Reserve have already been quietly bailing them out.
The absurdly named “CARES Act,” which apparently was meant to show how much your overlords care for you, funneled $190 billion to states, not including another $100 billion for government schools, Medicaid, and more. That is almost $250 billion to state and local governments — a number equivalent to about 3 months worth of state tax revenue.
Meanwhile, the Federal Reserve is quietly buying up endless amounts of state and municipal debt using currency created out of nothing. The Fed is also buying corporate debt, stock, and much more using front companies euphemistically dubbed “Special Purpose Vehicles.”
This is all insane, of course. And it’s going to end in disaster for everyone — including the government employees who are looting the taxpayer with help from politicians and the unions.
Not satisfied with that, though, Democrat states including New York and Illinois are now demanding yet another round of bailouts for their bloated state and local governments.