A STATE WITHIN A STATE, the enemy within, the public employee and the politician who demanded that our civil servants  be served by the people they were meant to serve.  Can this be reversed, We must revise/restructure the guaranteed pension system before it is too late.  State after State, municipality after municipality have seen their financial future and it is bleak. There is no golden rainbow on the horizon. The warning signs are there, the dark skies are forewarning us of an economic tsunami.

The pension bomb that has been set in motion by the socialist political machine is set to explode. We must address this issue now, no other issue is more important. Guaranteed pensions will zap all of the revenue from our coffers. Add to that the guaranteed medical benefits, together we are facing Armageddon. Today, many of our states and municipalities are on the verge of bankruptcy. If that is what it takes to restructure this unfair system, so be it. We will take our chances in court. 

Much bigger increases in employee costs are on the horizon. Thanks to huge unfunded pension and retirement health-care promises granted by past governments, and also to deceptive pension-fund accounting that understated liabilities and overstated future investment returns, California is now saddled with $550 billion of retirement debt.

The cost of servicing that debt has grown at a rate of more than 15% annually over the last decade. This year, retirement benefits—more than $6 billion—will exceed what the state is spending on higher education. Next year, retirement costs will rise another 15%. In fact, they are destined to grow so much faster than state revenues that they threaten to suck up the money for every other program in the state budget. (See the nearby chart.)

READ THE WHOLE ARTICLE FROM THE WALL STREET JOURNAL, CLICK HERE. http://online.wsj.com/article/SB10001424052748703447004575449813071709510.html

 

 Be prepared, if we stay on the same track,  America will soon be joining the ranks of the third world countries. .