Guest Post by Martin Armstrong
Stanford University has been tracking the cost of pensions in California. So while there is a movement starting to separate from the United States especially since they wanted Hillary, California will soon fall on its face and then will be begging Washington for a handout. The real amount owed by every household in California to cover state pensions jumped to $93,000 in 2015 up from $77,700 per household in 2014.
California may be the most socialistic state in the union, so expect them to also be among the first to collapse despite being the fifth largest economy in the world if looked at as their own nation. Go ahead – leave; but take your pensions with you please! There are two categories of fools: (1) are those who believe what isn’t true; and (2) those who refuse to believe what is true. Socialists seem to come in both varieties.
Millions of Socialists, have murdered and killed those who disagree with them. The opponents of Marxism have been burnt, tortured, fined, and imprisoned; yet we have not advanced one inch towards this mythical land of perfect harmony and utopia. The net result has only been war and conflict and to prove that one half the world is composed of fools and hypocrites who just want to be taken care-of, yet willing to surrender their independence while pretending to be independent.
Not one cent to California. That loony bin should be under martial law.
Not just Cal. Most states are in same boat as Fed. Gov’t, but Fed can print $$$$. Too many states have the pension deficit and it is too many (IMO) for the Fed. to print $$$ to bail out states.
What trigger will tip the canoe over? Cuz the tipping cannot be avoided.
93,000 per household.
All those “immigrant” and ghetto minority households, how much of that do you think they’ll be paying?
Who do you think the responsibility for their share will be falling on?
That shouldn’t be a difficult question to answer, prepare yourself for the inevitable as it happens and try to protect yourself from it as much as possible if you can.
Like any debt junkie, it will continue so long as the creditors(banks) keep extending credit. The second the creditors call in their loans, it will implode in a spectacular fashion.
Taxpayers are already at the breaking point. Squeezing them more will just pull in the day of reckoning.
I suspect the Fed Gov will extend the option to the states employees (in all states) the ability to join social security. This option will hurt the least people. The states pension plans will put whatever money they have left into the “SS trust fund”. The average working person will be relieved of paying excessive state tax; the state will be relieved of future unfunded liabilities. The 7.5% tax paid to SS is much lower then what the state contributes now. The only people hurt will be the retired state employee who is making over the max of SS. This will look good for SS for a while, but it is still doomed.
If the Dems ever regain control again I believe all pensions will be rolled into social security.A Dem congressman talked about it during Obama’s 1st campaign but was quickly silenced.You guys that have large pensions,IRA s and 401k s are going to get screwed,but it is for your own good so that you do not have any investment risk in your old age.Bend over,this will only hurt a little bit.
Just b4 I got on here I read an article about healthcare costs & GDP.
Sorry! The Soc Sec trust fund is broke, spent by your Federal Toadies, you all voted into office.
Zip:
I think you’re onto something there but beg to differ with your math. To wit: social security exclusive of medicare of 2.9% (1.45% & 1.45%) is 12.4% paid equally by employee withholding of 6.2% & is matched by the employer at 6.2%. Self-employed’s pay it all via fed tax form 1040 sched. SE.
Run on Dallas Pension Fund – Mayor Asks To Suspend Withdrawals
Posted Dec 4, 2016 by Martin Armstrong
The Mayor of Dallas, Mike Rawlings, sent a letter on the 29th asking for an immediate suspension of lump-sum withdrawals from the Dallas Police and Fire Pension Fund. There is a run on the pensions because people are realizing that there will be nothing there. The troubled pension fund will be insolvent by 2028 at the current level. The politicians are banking on a taxpayer bailout to save it.
66.7% of the people in California are illegal aliens. They need to go back to Mexico, or wherever, or into mass graves in the desert – I don’t have a strong preference.
It has been invaded and occupied. The proper response is military reconquest.
surprise surprise. The socialist shithole Cali deep in debt. Who could have seen it coming.
Illinois is not far behind.
Liberal foolishness has cost blood and treasure for a centurary and it continues today ! The debt nation wide is something a elmentrary math wiz would know something is not right ! Don’t let California slip away without covering their portion of the federal debt first probably about another $500,000 per person . Maybe they can get a home equity line from Wells Fargo !
I hope our Kalifornia regulars are paying attention. If you are expecting a Kali pension you best be extracting as much of it as possible as often as possible because…….it’s gone!
Actually that would be good advice anyone that worked for any city, county, state or federal govt expecting a pension. It’s now or never. And don’t be stupid enough to place it into institutions where it will be bailed-in. No point in going from the frying pan to the fire.
That goes 4 private pensions also,IS.If interest rates do not go up or the economy tanks too badly the unthinkable may happen–insurance companies may start going bk.In Europe there are some on the verge.
Well let’s see! Governor Moonbeam collects a pension for Secretary of State, governor, for mayor of Oakland, for Attorney General and perhaps governor again?
In the vein of George Deukmejian pension grabbing, also, the legislature can set its own pensions.
The pension racket in California by Police and Fire departments, teachers and a sundry of other overpaid lackeys who’s pension is tied to the tax payer want everything promised by liberal politicians.
And to get it straight, it is the productive citizens, private pensions, investment income, and businesses of California that are on the hook.
Don’t expect any reduction of pension payouts to these political grifters. They want everything that’s coming to them.
Glad I’m not living in LaLa Land.