It's pretty obvious to anyone who can perform basic arithmetic that public sector pensions are insolvent, but just how insolvent are they
The U.S. public pension gap has tripled to at least $2 trillion in less than a decade, Moody's Investors Service said in a report on Thursday.
Moody's measured the unfunded liabilities for the 25 biggest public retirement systems between 2004 and 2012. The total future shortfall is more than half the size of the $3.7 trillion municipal bond market, which comprises all the outstanding debt issued by U.S. states and cities.
The difference, of course, is that bonds are secured by real property. A bunch of ex-government employees have no inherent value, meaning the debt is completely unsecured.
You want to know what's going to trigger The Second American Tax Revolt? I'll tell you: a combination of unfunded liabilities, entitlements, and the default of the Social Security system. A some point, the insolvency of the Social Security system (thanks Bill Clinton!) will mean that it can no longer pay out money. The people who spent their entire lives paying into it will be told that they're getting zip, zilch, and nada when they retire. That's because the Democrats have to keep feeding money to the entitlement slave class they've created so they can stay in power. Oh, and of course the government retirees, none of whom paid a dime into the Social Security system, must have their pensions! So sorry, bud! It seems we just can't afford that whole Social Security thing. Tough luck, huh?
Now what happens? The children of the retirees will now have to support their parents, right as they are trying to raise a family and make ends meet. Question: How likely do you think they'll be to continue paying FICA?
Because when they stop paying -- and they will -- the whole Ponzi scheme falls apart.
You can only push so far, spend so much phantom money, and lie so often before people call you out. What the current crop of shit-for-brains politicos in D.C. have forgotten is that the Big Lie principle only goes so far; at some point, it's obvious to everyone that it's a lie and they stop pretending otherwise. When people work their entire lives, giving a huge chunk of their income to the government under threat of force, and are then told they'll never get it back... Well, when (not IF, but WHEN) that happens, the ropes will come out and necks will get stretched -- quite possibly literally. Take pictures of the gibbets, so future generations will understand that a professional political class is ALWAYS a bad idea.