Sunday, May 11, 2008

State Pension Fraud

In a previous post ("Update on Government Theft") I cited a speech given by Richard W. Fisher, CEO of the Federal Reserve Bank of Dallas disclosing unfunded federal liabilities of $83.9 trillion.

Now the Washington Post is reporting that Growing Deficits Threaten Pensions of state and local employees as well. (HT)

While liabilities are not as large as federal liabilities, the bottom line is the same:

In Montgomery County [MD], for instance, pension and retiree health care costs are already higher than the combined budgets for the departments of transportation and health and human services. Eventually, officials responsible for the funds will have to choose whether to continue paying out or renege on benefits promised to retirees.

"Renege on promises" sums up government on all levels.

If you're depending on politicians to keep their promises, you're deluded. Your financial security is better left in your own hands, and in the hands of private experts competing with one another for your trust.

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