disaster – Page 2 – The Burning Platform

It’s Time to Turn Out the Lights in Illinois

If decreasing your long-term pension return assumption from 7.5% to 7.0% creates a financial crisis, imagine what happens when their actual returns are 1%.

Guest Post by Martin Armstrong

The roads in Illinois are in decay. This may be the first state to go bankrupt. The question is not if, but when. State unions are so greedy that they are destroying the very state. This is exactly how Rome fell — government employees against the people.

Seven states have constitutional provisions that state employee pensions must come BEFORE everything, including debt payments. Since the legislature in New Jersey was Democrat, they fought Governor Christie on pension reform. Their solution? On the ballot in November, there will be a provision to amend the state Constitution to put employee pensions before everything else. The people are generally kept ignorant of what that means to property taxes and the future of the state. Therefore, the average person will say, “Sure, I should get my pension, so they should also.”

Illinois should declare bankruptcy. It is simply inevitable. There is absolutely no hope for Illinois whatsoever. Every year they will have to pay more and more. If the state who manages the pension money loses, well, the taxpayers have to cover those losses as well. The governor tried to stop the downgrade of expectations for earnings in the pension fund from 7.5% to 7%, which means they have to raise taxes and/or cut service by almost a half-billion.

It’s time to just turnout the lights in Illinois. Welcome to the Sovereign Debt Crisis. This is the contagion you will finally start to hear about, but only after the elections. Why spoil the party?

Illinois Obamacare Co-Op Goes Bust Leaving Tens of Thousands At Risk

by Tyler Durden

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

The fact that Obamacare is a gigantic train wreck barreling uncontrollably into a brick wall is pretty much undeniable at this point. I’ve covered this reality from several angles in 2016, with one of the more popular posts being, The Health Insurance Scam – “Coverage” Doesn’t Mean Affordability or Access, in which I noted:

Politicians, particularly those of the Democratic persuasion, love to throw around statistics about how many additional people have healthcare coverage without ever talking about the cost of such coverage, or whether it actually translates into actual access in the real world.

While a greater number of Americans having health insurance is a good thing when it comes to protecting against unexpected catastrophic events or extended hospital stays, it doesn’t tell you anything about two very important variables: 1) How much does it cost? 2) What kind of access does it provide? As usual, the devil is in the details.

We’ve all seen headlines about higher monthly premiums, but that’s just the tip of iceberg. Once you’ve paid your premium, you’re far from off the hook. Another one-two punch of deductibles, copays and out of pocket maximums appear which can collectively run into the thousands if not tens of thousands of dollars for families.

In my opinion, the above situation represents the number one failure of Obamacare, but there are others. Today’s piece focuses in on the state of Obamacare co-ops, which were “created under the federal health law to provide cost-effective coverage and competition in state insurance markets.”

Continue reading “Illinois Obamacare Co-Op Goes Bust Leaving Tens of Thousands At Risk”

Venezuela’s democratic façade has completely crumbled

Guest Post by Moisés Naim and Francisco Toro

A national guard member patrols a supermarket in Caracas in February of last year. (Juan Barreto/AGENCE FRANCE-PRESSE/Getty Images)

Moisés Naim is a distinguished fellow at the Carnegie Endowment for International Peace and served as Venezuela’s minister of trade and industry from 1989 to 1990. Francisco Toro is the founder and editor in chief of the Caracas Chronicles news site.

Today, Venezuela is the sick man of Latin America, buckling under chronic shortages of everything from food and toilet paper to medicine and freedom. Riots and looting have become commonplace, as hungry people vent their despair while the revolutionary elite lives in luxury, pausing now and then to order recruits to fire more tear gas into crowds desperate for food.

Surveillance camera footage shows violent looting take over a bakery in the Venezuelan capital of Caracas as the country battles widespread shortages of basic goods amid a reeling economic crisis. (Reuters)

Continue reading “Venezuela’s democratic façade has completely crumbled”

Blackouts Loom With California In Power Grid Emergency: “All Customers Should Expect 14 Days Without Power”

Submitted by Mac Slavo via SHTFPlan.com,

The entire Los Angeles metropolitan area and most of Southern California can expect blackouts this summer.

The power grid is under direct threat as a result of the unprecedented, but little reported, massive natural gas leaks at Alisco Canyon that was ongoing for four months as an intense summer heat wave sets in.

According to Reuters:

California will have its first test of plans to keep the lights on this summer…

With record-setting heat and air conditioning demand expected in Southern California, the state’s power grid operator issued a so-called “flex alert,” urging consumers to conserve energy to help prevent rotating power outages – which could occur regardless.

Electricity demand is expected to rise during the unseasonable heatwave on Monday and Tuesday, with forecast system-wide use expected to top 45,000 megawatts, said the California Independent System Operator (ISO), which manages electricity flow through the state. That compares with a peak demand of 47,358 MW last year and the all-time high of 50,270 MW set in July 2006.

That could put stress on the power grid, particularly with the shut-in of Aliso Canyon, following a massive leak at the underground storage facility in October [Editor’s Note: which was not stopped fully until mid-February 2016].

The large-scale natural gas disaster – which curiously escaped media frenzy and widespread environmental concern – has resulted in the shutdown of key storage facilities that supply most of the power for the southern portion of the state.

Continue reading “Blackouts Loom With California In Power Grid Emergency: “All Customers Should Expect 14 Days Without Power””