Yes, you have heard many states must balance their budgets annually but you seldom hear how they avoid doing so. One way is to make unrealistic pension obligation assumptions. They do this by actuarialy claiming they are meeting their obligations when, in fact, they are not. Most states have pension shortfalls.
The period of low interest rates has crushed pension returns resulting in increased under funding. Also, many states make contributions that are lower than required creating more short falls in funding obligations.
Meanwhile, the Federal Government only reports a small amount of its various debt obligations - now over $20 Trillion. This amounts to some $65,000/ individual of indebtedness.
America's off balance sheet obligations, which are unreported, far exceed that which is reported. Basically were our government a bank customer and the bank called in our loans we would be unable to meet the call. As long as lenders are willing to believe in the term "full faith and credit" we can finesse our obligations but one day the music will stop and there will not be enough chairs.
I guess we could always sell Yellowstone Park back to the Native Americans who now have oil and casinos filling their coffers. (See 1 below.)
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Many years ago I suggested to an Israeli friend, fellow memo reader and a high up in the IDF echelons that eventually Israel should drive steel plates deep below ground along its Gaza border to disrupt terrorist penetration. I believe, in some respects, they have done so as well as develop excellent detection devices where terrorists continue to build tunnels penetrating into Israel.
I now believe, as Israel's relationship with Saudi Arabia improves, trade and various intelligence swapping activities are occurring as the Saudi government is rapidly changing. Furthermore, in recognition of the Iranian threat, Israel could well assist the Saudis in having a nuclear capability under Israeli safeguards.
Stranger things have been known to happen dictated by necessity. Just one of my, out of the box, thoughts.
After Obama, the Saudis, and even the Poles and Ukrainians, learned, dependence on America is as fragile as the next president.
The prospect of world peace boils down to American military capabilities, its will to protect itself and meet its treaty commitments and faith in America's word that it remains a reliable ally. Obama exploded all of this in eight years and now N Korea is demonstrating America has become more talk than action. Obama's deal with Iran, and the cash hostage funding of same, sends another message that America may well have become a shrinking Gulliver.
Those who continue to defend Obama and think of him as a great president are unwilling to open their eyes to reality because they have a vested interest in perpetuating the myth. Some do so on racial grounds.
History will prove what I said from the beginning. Obama was always an empty suit, a Hollywood false movie set, the Music Man and ultimately an unmitigated disaster.
Like the movement of law, which grinds fine and ever so slowly, the same with history's glacial movement. Nevertheless, eventually hidden truths reveal themselves.
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Lamentably, America's youth have gone from charging up cliffs in the face of deadly fire power to needing free psychiatric consultation at one of California's Universities because a conservative campus speaker offended their ears with free speech.
This is America some 70 years after liberal and politically correct progressive nonsense has taken over our campuses and infiltrated our nation's character.
We have gone from defending freedom to preventing free speech and as N Korea sends another missile over Japan. If I told you this would be happening 50 years ago you would have said I was crazy.
Meanwhile, Harvard considered their appointment of the traitorous Chelsea Manning to a faculty position may have been a mistake. For $70,000 you can learn from professors at Harvard how to be stupid but think of all the contacts you will make that will help you enter government so you can save the world with your freaky ideas.
Finally, Islamic terrorists told us they would soon be attacking trains and rail tracks. Today, there was just such a "workplace disturbance" on an English train. It has to be comforting for the world to know America expresses its concern, extends its sympathy and that all options remain on the table.
God help us!
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We leave for Cartersville to participate in an exhibition of loaned Western Art at The Booth Museum. Returning late Sunday. Google The Booth Museum of Western Art. It is a hidden jewel some 40 miles north of Atlanta on the way to Chattanooga..
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Dick
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1)Moody's: State Pension Liabilities Hit $1.3 Trillion
U.S. state unfunded pension liabilities hit $1.3 trillion in fiscal 2016, a $56 billion or 4.5 percent increase over the previous fiscal year, Moody's Investors Service reported.
The credit rating agency attributed the higher adjusted net pension liability for the 50 states to underperforming investment returns, low interest rates and insufficient contributions to retirement systems for government workers.
"About half the states are also not making sufficient payments to pension systems to prevent their unfunded liabilities from growing even if investment targets are met," Moody's said in a statement.
It projected the liability will grow again in fiscal 2017 to $1.7 trillion.
Overall, fiscal 2016's $1.3 trillion unfunded liability equaled 122 percent of state revenue.
Illinois, which has been hindered by its state constitution from reducing retirement benefits to cut pension costs, had the biggest unfunded liability in fiscal 2016 equal to 487 percent of its revenue versus a median of 82 percent for all states. Alaska came in second at 443 percent of revenue, followed by Connecticut at 285 percent.
In terms of percentage of revenue, North Carolina's pension liability was the lowest at 23.6 percent, Moody's reported.
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