Authored by John Mauldin via MauldinEconomics.com,
Total unfunded liabilities in state and local pensions have roughly quintupled in the last decade.
You read that right—not doubled, tripled, or quadrupled—quintupled. That’s nice when it happens on a slot machine, not so nice when it’s money you owe.
You will also notice in the chart that much of that change happened in 2008.
Why was that?
With the Graham-Cassidy Obamacare replacement now officially dead, it appears Senate Republicans will be unable to pass a repeal-and-replace bill before the Sept. 30 deadline announced by the Senate Parliamentarian arrives – though it’s impossible to rule out another long-shot plan gaining momentum in the coming days.
After the deadline, Senate Republicans would need 60 votes for their repeal-and-replace bill, effectively killing the repeal-and-replace effort, at least for now.
We've frequently argued that public pensions in the U.S. are nothing more than elaborate ponzi schemes being propped up by unrealistic accounting assumptions that make them seem more healthy than they actually are. As it turns out, the State Budget Director of Kentucky, John Chilton, is coming around to our way of thinking.
We've recently found ourselves frequently noting a rather bizarre new trend in which the mainstream media and liberal Washington D.C. establishment has turned its back on the Silicon Valley elites. Just last week, even Hillary Clinton called out Facebook for allowing someone who may have been Russian buy a staggering $50,000 worth of political ads on their site...hopefully we don't have to explain the irony of that statement given that Facebook execs gave millions to Hillary's campaign.
By John Mauldin from Mauldin economics