Thursday, December 5, 2013
The Foundation is Cracking
Can you feel it? The ruling the other day allowing Detroit to continue with it's bankruptcy filing has sent repercussions into the leech field and cracks are forming across the public sector foundation.
I noticed the worry lines forming this holiday season. The same government workers that were celebrating their up coming retirements on the public dime at age 50 and how they were guaranteed in writing have been following this Detroit filing and they are sweating bullets now.
The usual suspects are now going back 60 years trying to blame Mayors from the 50's and 60's for this crisis
How Detroit went Broke
Detroit crossed over the spending line in 1977 yet the Femocrat/Progressives are trying to pin the blame on actions from the 60's? Grabbing at a Million here or there to justify a 19 Billion shortfall?
The funny thing is these same unions and individuals who will write long sob stories to try and keep their stolen cash coming in don't seem to realize that they are hurting themselves no matter how the ruling goes. If the courts pull an illegal GM move and shaft the bond holders they are still robbing the pension funds. Who do they think is actually invested in these multi-billion dollar bond buys?
This is the real motivation for Fed QE. That money is not finding it's way down into the economy which is why we are not seeing massive runaway inflation only denied high inflation. What it is doing is keeping the Pension funds as bloated as possible so instead of being 25% funded they are managing to be 75% funded. But what happens when huge chunks of those Pension plans become worthless junk?
Our economy is in one giant feedback loop and has been for years now. The government fears a stock market and equities crash more than anything right now because only an extremely over valued market can produce the numbers they need to continue the illusion of pensions actually being funded.
Ina very real sense we are seeing the old prepper argument of precious metals v. food playing itself out on a grand scale. How much are these holdings really worth when you get right down to it?
What we are going to see now is a never ending supply of sob stories and individual tales of hardship and suffering.
The public pensioners are going to find out for themselves a rule we have all known for years. If you don't have it in your hot little hand... You don't have it.
Keep Prepping Everyone!!!!