$2 Trillion Pension Shortfall

In my previous posting about the superstorm...we ended with a simple explanation about how the financial house could unravel.

Now, let's not forget to throw in a few more financial-superstorms that are already nearing a boil...

First off remember the student loan debacle that could be a $1 trillion disaster.

Also take note of the state pensions which are now being revealed as hopelessly broke.

US public pensions face a shortfall of $2,500 billion (that's $2.5 trillion) that will force state and local governments to sell assets and make deep cuts to services, according to the former chairman of New Jersey’s pension fund.

The severe US economic recession has cast a spotlight on years of fiscal mismanagement, including chronic underfunding of retirement promises.

“States face cost pressure, most prominently from retirement benefits and Medicaid [the health programme for the poor],” Orin Kramer told the Financial Times.

“One consequence is that asset sales and privatisation will pick up. The very unfortunate consequence is that various safety nets for the most vulnerable citizens will be cut back.”

Now pay close attention to this paragraph;

Concerns about the financial health of local governments have sparked warnings of a rise in defaults for cities and towns and a sell-off in the $3,000 billion (that's $3 trillion) municipal bond market where they raise money.

See it here; http://www.cnbc.com/id/41129099

"But Dennis....you are forgetting that the U.S. Treasury has the power to print money....so we will just create-out-of-thin-air the money necessary to pay all these obligations."

Sure....that ought to work...

In fact...while we are at it, why don't we just keep printing and give everyone over the age of 18 $1 million dollars? That way we could all pay off our student loans, pay off our car loans, pay off our mortgages, take a much needed vacation to Arizona, buy a new pickup truck, re-model our houses, etc... It would be GREAT!!

Friends...that's just dumb. If printing money on paper really worked....every nation in the world would be rich beyond compare!

Please remember to pray for our leaders. As we all know, a new Congress has just convened with new leadership. Pray that God will give them the wisdom necessary to turn this sinking ship around.

And if it is NOT in God's will to rescue this sinking ship....please pray that God would make our backs strong so that we can carry the hardship that will be coming for us.