Here's the link with some details: http://www.msnbc.msn.com/id/43046428/ns/business-stocks_and_economy Looks like they're suspending payments into a couple of govt employees' pension funds. I was under the impression that this should be a good thing, as this means money is being taken away from public sector employees and their unions?
In theory, I'd agree, however others think that we're "going Argentinian". Ireland has already tested the waters with taxing private retirement accounts, how long can they hold out on the massive cash cow in the US?
I'd be willing to bet quite a sum that the real economy would literally fall on it's face at breakneck speed if government spending ever truly were curtailed. I've mentioned it in other threads, but do some long hard thinking about the myriad ways in which the public sector literally keeps the entire system afloat. Whether it be increased consumption or indirectly via all of the overspending and woeful waste. I just don't think that we have even one iota of a notion as to what the real economy would look like without parabolic public sector growth and spending. Don't get me wrong, I'm all for draconian cuts, but I'm fairly certain that we're so far past any organic growth that we've been literally transformed into an economy where every sector is feeding off the "host" to a large extent.
Sure, could happen... For now, maybe this offers a somewhat limited way to reduce the public sector benefits.
it takes 4-5 maybe even 6 federal employees to do the JOB of someone who 's job is actually on the line...I know im shooting the number out of my a**..but you get the idea. Think about cutting them off the nipple and I agree with you...we would implode.
It would depend on the state a person resides in. Some would get by, others heavily dependent on DC, would go up in smoke.
Denner and friends. ------------------------------- You bring up a very good point. I'm for huge cuts as well but right now...looks like (Based on some numbers that have been sent to me) that a loss of over 24 million jobs will come if we do not Raise the Debt Ceiling, have deep cuts. We are between a rock and a shit pond. Taxes will be raised by this government, I have no doubt. Also, there will be QE3 in some form or another as will 4 , 5 , 6 follow. We are heading into the second down wave of a serious Recession that could be far worse than the Depression of the 30s and the Recession of 08 combined. Indonesia, Vietnam, Brazil Chile Argentina are still in growth mode as is HK, China singapore. However, the Asian Tigers could be dragged down if China losses steam. Right now, most cargo is flowing out of China to Consumer nations.... EU is fucked. PERIOD It is getting real stormy out there....keep an eye on the BALTIC DRY INDEX.....Key leading indicator. KEY POINT TO SURVIVAL IN THE US IS: ... depends on the state a person resides in. BINGO! That is my Hypothesis. The na sayers will wake up , like in NY, IL, MA, CA with nothing left but Government Programs, Crime, unemployment and heavy violence.
This is interesting. A while back I was getting the drift that the state might be interested in taking the state pensions, hence telling the Fed to butt out. This was in NY. I'm not sure about this though because where I heard it, the conversation got cut short for other reasons and I couldn't follow up. It'll be interesting to see how this works out.