Pension Chaos as System Furthers Unfunded Narrative

...and 'poof', it's gone...

U.S. states and localities have run up more than $2 trillion of unfunded pension liabilities, Moody's Investors Service said on Monday, citing data on plans offered by 8,500 local governments and over 14,000 individual entities.

The Wall Street credit agency said that according to its estimate, the total liabilities for fiscal 2010 were more than three times the amount reported by local governments.

"Pension liabilities are widely acknowledged to be understated," Moody's Managing Director Timothy Blake said in a statement. Most states end their fiscal years on June 30.

Investors in the $3.7 trillion municipal bond market are focused on whether states, counties, cities and towns can afford the pension benefits granted public workers.

So the local governments are lying about how much money is in the system and what their obligations are. Gee, where have we heard all that that before? In May 2011, after correctly identifying the debt ceiling crisis and its subsequent management, I continued with the following -

When austerity reality comes blaring through sometime in late 2011 to mid-2012, the perception of the public will continue to be that the government just needs more tools to fix the problem, if only those blasted patriots would give them to them. This will cause resentment to build on the part of some sheep orientated public towards some of those that perceive the correct problem. This resentment will be seized upon and used to conduct personal attacks on those who wish to actually solve the problem resulting in a despotic slide into semi-overt tyranny in the name of liberty and prosperity.

One has to only observe the absolute insanity which has gripped the state of Wisconsin to begin to see this playing out. One year ago, I covered the scenario under which this present system labors -

Pretend for a second you hired an individual to manage your finances. In turn, he would arrange schooling, water, police services, and a few other important items for you and your family of 4. Naturally, you would expect a bill. When that day comes, it says 50% on it... Not $10, not $500, but 50% of your $120,000. Outraged, you demand an explanation. What does it matter how much money you make you demand to know. I want to know how much you are charging. At this point, the individual feigns fear and arranges for the police that you paid for to arrest you and take you to jail for bill avoidance. 10 years later when you get out, you get a bill for not only his services, but your jail upkeep and food and just to rub it in - another bill for $250,000. His "debt" that you supposedly owe.

This is precisely why Romney will not change anything substantially. He is beholden to the same banksters that are robbing us blind. He is a trustee/puppet that dances long enough to distract the poor sheep so that the banksters can get away.