Wednesday, March 17, 2010

And You Thought Greece Was The Only Insolvent Government

Warning.... this is NOT an uplifting post.

New Jersey Road Sign

How about state pension funds right here at home?

Nevermind bankrupt California.
Or the wasteland of Michigan (I hear Detroit is reverting to farmland).

But take for example, the State of New Jersey.

New Jersey is so strapped for money that they are planning on skipping a $3 Billion dollar pension payment! I am certain this is going to make many New Jersey retirees very concerned.

Read about it here.

Oh man, these States, and we the taxpayers, are so very screwed.
Thanks to years of runaway spending and an entitlement mentality, the States are going broke.
Thanks to the public sector that has grown out of control with bloated budgets that they are unwilling to relinquish.
This is the result of more agencies, more task forces, more commissions, more pensions and benefits and more waste....more, more, more.
And who do you think will bail these States out?

The Federal government and their printing presses of course.

And....We are surely on the road to more financial instability and when you look at the oncoming default tsunami that will hit foreign shores before too long ... Greece is just the beginning.

Well, all I can say is you better hope you are doing something to protect yourself and your assets while there is still time.
I don't think anyone wants to be holding Federal Reserve Notes when things start to go South.

That's not doom and gloom... that is financial reality.
One only has to look at the unsustainability of the course these governments have set.
One only has to see history repeating itself.
Just look at Wiemar and Zimbabwe...
Look at how they got to financial ruin.

Double digit inflation (and very possibly, hyperinflation) is on the way baby.