State pension funds are underfunded by over $3 trillion; this is more than six times the $438 billion in underfunding the plans themselves report. Pension shortfalls far exceed explicit state debts.
Current state pension accounting practices are inaccurate and outmoded. Private pension plans would not be allowed to use such methods.
Of course, no one will ever be sued by the SEC, prosecuted by the DOJ, or McCarthied by a Congressional committee for this. Or for the equivalent Federal fraud in making untenable promises for future Social Security and Medicare entitlements.
Because this fraud is perpetrated by people who were Elected, it is sanctioned by Divine Right. Anyway, it cannot possibly be fraud, because government is “us.”
May 3 2010 at 12:17pm
FDR learned to dismiss the budget deficit because “we ought it to ourselves.” Therefore, it is not fraud; it really isn’t debt. A type of “Ricardian” model, really.
I suppose the same pseudo-reasoning applies to Social Security, Medicare, and public sector pensions.
May 3 2010 at 1:04pm
You got some flak in the comments on your last few posts about government, but what you say here should make your critics rethink. Keep hammering …
May 3 2010 at 10:19pm
What you describe looks like a Ponzi scheme, to me.
Who’s been the last one to face charges of fraud for that?
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