I've tried to warn you all about this if you're a firefighter, cop, teacher or otherwise employed by a state or local government -- you are not going to get your pension!
(Reuters) - U.S. states and localities have run up more than $2 trillion of unfunded pension liabilities, Moody's Investors Service said on Monday, citing data on plans offered by 8,500 local governments and over 14,000 individual entities.
The Wall Street credit agency said that according to its estimate, the total liabilities for fiscal 2010 were more than three times the amount reported by local governments.
Read that last sentence again. And again. And again.
You are being lied to. Actively. Intentionally. Repetitively.
The money does not exist to pay those pensions. The governments cannot tax sufficiently to pay those pensions.
You are not going to get your pension.
Oh sure, if you're retired now, or nearly so, you are likely to get a good part of it. But you won't get it all if you've got more than 10 years left (before you die) -- that is, if you're under 70 or so.
Keep threatening, teachers, firefighters and cops. Go on strike. Please. All those threats, protests and strikes demonstrate is that you are demanding that 2 + 2 = 5 -- but no matter how loudly you scream, you can't make it so.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.
NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.
The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
Looking for "The Best of Market Ticker"? Check out Ticker Classics.
Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.
The Market Ticker content may be reproduced or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media or for commercial use.
Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.