The American Empire in a Changing World


Wednesday, December 12, 2012

''U.S. Looming Pensions Crisis: State Budgets Soon to Be Under Siege''

From Market Oracle
By John Mauldin

''In 2003, I was writing about the unfunded liabilities of state and local pensions. It was part of Bull’s Eye Investing, which came out in 2004. I caught some flak for being so pessimistic about the potential problems. Quoting:

Unless steps are taken soon, it is possible we can see shortfalls approaching $1 trillion–$2 trillion in state-sponsored pension funds within 10 years. A deficit of this size on the state level can truly be called a crisis. A tax increase or other adjustments to fund this will be a large drag on the economy.''

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