Thursday, February 25, 2016
The Pot of Water Heats Up
I been watching a kinda regional pension issue develop over the last four or five months to see how it would work itself out. The Central States Pension fund which basically means the Teamsters union for I believe Missouri, Kansas, Nebraska and maybe Iowa has been going broke for some time now with the usual screaming, teeth gnashing, calls for the government to step in and accusations of broken promises....
Let me stop here though. The time for finger pointing is over, at least in my case anyway. If someone came by and told me they were going to make sure I got paid 20 or 30 times more than my job paid in other places and that I would be able to retire in my early 50's with benefits and be basically immune from being fired while working I would look at them like they were insane. If somehow then managed to get me what they promised I would take that extra cash and sink it into land, livestock and precious metals because I would just know something that good couldn't last forever.
That's just me though I guess. I used to think it was a regional Missouri "Show Me" thing I grew up with but I have always lived by that adage that if something is too good to be true it probably isn't going to be true for long.
So my new stance on this always escalating pension crisis is that I am giving people notice. Your pensions will NOT be there in a few more years. You can chose to be pissy about it or you can choose to prepare for it. Even if you continue to get a check it will continually fail to cover your expenses each month and that disparity will grow as each day passes. The government will either inflate away the expense or the fund will be cut like this one looks to be heading for.
Central States calls painful cuts only alternative to federal bailout
Trustees of the pension fund that covers mainly Teamsters union members and retirees said it needs $11 billion in new funding to make good on current and future benefits. Short of a bailout of that size from Congress, or going through with the proposed rescue plan, the fund will collapse, they said.
At this stage of the game a federal bailout is no different than the original scheme. Eventually the easy credit for governments will go away and it will be worse but I doubt the government will step in. There is no way the government is going to be able to bail out all the funds that are in trouble and sinking fast, and they know it. If they set a precedence here it will never end.
The moral to this and the theme of the future is that the only one responsible for you and your retirement is you.
Keep Prepping Everyone!!!!!!!