Taxpayers, senior citizens, and everyone who is even near approaching retirement are facing their own Waterloo. Bondholders are going to be competing with the pension beneficiaries for scarce government resources on the local, state, and federal level for there is just not enough money to pay everyone their due. Already Social Security is failing the elderly by not keeping up with inflation, but that is just a whiff of what is yet to come.
Big U.S. cities and counties are being put in a headlock by unfunded public pensions as they face a $574 billion funding gap. The gap at the municipal level would be in addition to $3,000 billion (3 trillion) in unfunded liabilities already estimated for state-run pensions, according to research from the Kellogg School of Management at Northwestern University and the University of Rochester. The financial demands of unfunded pension promises come as state and local governments grapple with years of falling tax revenue related to the recession.
The government has to do something so they will probably do what they do best—steal from the common man and give it to the rich. Until the very end when the system just collapses in on itself, we will see evermore-desperate plans to save the sinking ship. Actually, according to some, it is really not a rescue attempt but just efforts to give the “rats” more time to abandon ship, leave the country, get into gold, build underground shelters, and have more fun at everyone else’s expense.
Paul Joseph Watson over at Info Wars is saying that Americans should be prepared to see their government seize the private 401(k) pensions of millions of its citizens while enforcing an additional five percent payroll tax as part of a new bailout program that will empower the Social Security Administration to redistribute pension funds in a frightening example of big government gone wild and desperate. Desperate times demand desperate answers but there are limits to everything—or are there?
The cities, counties, and authorities of New York have promised more than $200 billion worth of health benefits to their retirees while setting aside almost nothing. The federal government has promised a mountain range, over $100 trillion in benefits in terms of Social Security, Medicare, and Medicaid to retirees, but has done worse than New York in terms of setting aside nothing. People have been taxed for decades and the government has been borrowing and spending that money (stealing, actually), so there is just an empty vault of promises good for wallpaper and toilet paper.
Modern civilization seems to love thievery—certainly it condones it in a huge way allowing the elite of the world to suck up (steal) trillions. They have gotten super rich and have plenty of money to build underground cities and huge please boats and have whatever they want. Where do you think all this money flowing up to the top one percent of humanity is coming from? A great part has been literally stolen from the future, from people’s retirement accounts, from future medical payments and social security and everything else they could get their hands on. They certainly sucked up hard on the housing boom, raking in billions upon billions on the huge scam and fraud that most economists and the media gladly helped them out with.
There is very little good and a lot of bad and a growing sense of ugliness that is gripping the world, so it’s time to clear the decks for action—all hands on deck.
“Law-abiding middle-class citizens are deciding that playing by the rules is nothing but a sucker’s game. Just like the poker player who’s been fleeced by all the other players and gets one mean attitude once he finally wakes up to the con. I’m betting that more and more of the solid American middle-class will begin saying what Brian and Ilsa said: Fuckit. Fuck the rules. Fuck playing the game the banksters want you to play. Fuck being the good citizen. Fuck filling out every form, fuck paying every tax. Fuck the government, fuck the banks who own them. Fuck the free-loaders living rent-free while we pay. Fuck the legal process, a game that only works if you’ve got the money to pay for the parasite lawyers. Fuck being a chump. Fuck being a stooge. Fuck trying to dothe right thing—what good does that get you? What good is coming your way? Fuckit. When the backbone of a country starts thinking that laws and rules are not worth following, it’s just a hop, skip, and a jump to anarchy.”
The New York Times reported, “One city, Schenectady, found the cost too overwhelming to calculate, warning that it ‘will be astronomical, with the potential of bankrupting municipalities.’ The city even said in a document accompanying a recent debt offering that it did not know whether it was really required to comply with the new accounting rule.” One of the biggest tools of modern day thieves (government-sponsored theft) has been greasy accounting rules that mostly allow banks, insurance companies, local, state, and federal governments and agencies to count crookedly. The Federal Reserve has bought a trillion dollars of paper and their accounting rules allow them and other banks to count this paper at full face value when perhaps they will be worth pennies on the dollar or less in a few months or in a year’s time.
The Times continues saying, “The $200 billion that New York State and its localities owe retirees in the aggregate is less than the amount they owe their bondholders, about $264 billion. But health costs are rising, and in some places the obligations have already eclipsed the value of the government’s outstanding bonds. Most credit analysts seem to expect that if a municipality has to default on something, it will default on its retiree health promises, not on its bonds. Pensions, meanwhile, are considered protected by the New York State constitution. But no one knows for sure, and no one is predicting that retirees will take the loss of a valuable health plan lying down.”
If you have not figured it out yet, a lot of people on this planet are owed a staggering amount of money. These people are divided basically into two classes. There are the bondholders (the rich) and the rest of humanity, who are owed pensions, health benefits, and governmental services including infrastructure investments as well as teachers for their children, librarians, fire, policemen, and judges to protect them from thieves. It is an illusion and a heartbreaking fantasy to expect that there will be money for any of these things, and that is what civilization collapse in our modern times is going to be all about. There will be a breakdown in currencies and the entire financial and money system because the system cannot hide forever from the massive lack of money (unless printed in stupendous amounts causing a hyperinflationary collapse).
Today’s financial situation is dangerous beyond everyone’s imagination but no doubt elite-backed think tanks have been pondering over these issues for a long time. “It will be a mess. There will be a lot of disputes, a lot of litigation,” said Jerry A. Webman, chief economist for Oppenheimer Funds, being quoted in the Times. “Defaults and bankruptcies by governments were still so rare that there was little legal precedent, and no way of knowing which pledges would survive a court challenge.”
The courts will be overwhelmed and certainly they will in no way be able to counteract the collapse. The situation is so dire that when the next crisis hits the wall of humanity (with officials actually losing control), events will move like a flash fire instead of an organized retreat into poverty. The collapse will probably feel like the roof falling in on a house full of people with so many being caught that the scream and wail of humanity will be remembered for a thousand years or more.
In the end, contemporary capitalism has not been about the freedom to achieve financial security and get ahead based on one’s efforts. It has been about theft and destruction and an evil that is centered at the very top layer of humanity. All of us who believe in the system and walk around smugly and comfortably are voting for the thievery to continue and for the rich to get even richer, or for them to at the very least keep what they have stolen, not only from the rest of the planet but from mother earth and our precious environment.
Meanwhile as we wait for the day of reckoning, First World families better get ready to tighten their belts. Many people around the world who are already feeling squeezed are going to start feeling the vice tighten even more in the months ahead. The price of gas is starting to spike. The price of food is moving north. Health insurance premium increases are being announced coast to coast, and a whole slate of tax increases is scheduled to go into effect in 2011. Meanwhile, household incomes are down substantially all over the nation and the U.S. government is indicating that there will not be an increase in Social Security benefits for the upcoming year once again.
But there is nothing to worry about. One day soon we’ll all be billionaires. The history of hyperinflation always begins with creating money that doesn’t represent economic value-added and ends with photographs of pensioners using wheelbarrows of marks to buy a loaf of bread or stacks of rubles being used as roofing materials as they’re worth less than shingles.