In case you missed it, the Federal Reserve’s quarterly Financial Accounts report last week included a change to accounting for state and local pension-fund programs. The central bank revised its data for unfunded liabilities, applying a “projected benefit obligation” method instead of the prior “accumulated benefit obligation” approach. With the change increasing unfunded obligations by $2.3 trillion — more than double the previous total — “the Fed dropped a bomb,” according to Stephanie Pomboy of researcher MacroMavens LLC, who says states will eventually need to cut spending or raise taxes to compensate.
Look out below…
Unfunded liability is just a nice way to say ‘fraud.’
So, are Illinois city, county and state pensions going to get a bail out? Those that receive no pension will pay to ensure that a public service employee union worker will receive 100% of their pension promised by some union leader? How about the contagion-related promised stay where they were created- within the boundaries of a state, county and city.
Just know, they are going to FUCK US 100% to make sure these checks keep coming to their retired minion parasites.
None of these articles will mean anything until they run out of other people’s money. That is when SHTF. I think they will inflate the obligation down to manageable levels. The pensions il get paid but they won’t be worth much. In the meantime the rest of us are screwed as well and the politicians will skate.
If the private sector contract agreement is blown away as unfunded or underfunded liability so are all government pension programs that is of course if all American citizens recieve equal protection under the law or lack of protection under the law written by elected officials to protect their crony capitalists and of course their phoney baloney jobs