Bankruptcies: Connecting the Dots!
The political mismanagement of our finances is no different than the mismanagement of our water supplies
Aug 22, 2012
We would like to share Devin Nunes' Newsletter with our readers because we are constantly attempting to 'connect the dots' for the people of California to show them how making it more and more difficult to create businesses and hire people is sending us into a perpetual downward spiral. As Congressman Nunes says in his commentary "the main thing that distinguishes the federal government’s budget from those of California’s failing municipalities is simply the scale of the irresponsibility." The title of his newsletter 'Somewhere Between Critical and Too Late to Deal With It' is self-explanatory. If we don't get some leaders in this state and this country who are willing to deal with the massive problems we have, we might not be able to dig our way out.
Families Protecting the Valley is primarily concerned with farm water and the farm economy and how it impacts the overall economy. We would also like to make the point that the political mismanagement of our finances is no different than the mismanagement of our water supplies and it will soon be too late to dig our way out of that problem as well.
Below the Nunes newsletter there are four other articles from today's news about abuses and problems with pension systems and bankruptcies. Remember, these stories are just from today. We could do this every day with other similar stories.
Somewhere Between Critical and Too Late to Deal With It
Following the bankruptcies of Stockton, San Bernardino, and Mammoth Lakes earlier this year, Moody’s says it expects more California municipalities to go insolvent. The credit rating agency notes that more than 10 percent of the state’s cities have declared fiscal crises.
I’m not sure why so many politicians believe their budgets are exempt from the laws of mathematics. But when you pay out unaffordable benefits to public employees – including lavish pensions found almost nowhere in the private sector – eventually, those costs have to be paid off. Budget tricks, accounting gimmicks, and low-ball cost projections – the methods used by the Obama administration (ObamaCare) and the California Governor’s office (high-speed rail) – can fool people for a while. But in the end, bills have to be paid, one way or another.
What’s disturbing is that in some respects, the main thing that distinguishes the federal government’s budget from those of California’s failing municipalities is simply the scale of the irresponsibility.
Consider Social Security. In their latest 75-year budget projection, the Social Security trustees estimate the total Social Security shortfall at an unbelievable $134 trillion. Even adjusted for inflation, the figure is $30.5 trillion in today’s dollars, which the Associated Press notes is eight times bigger than the entire 2012 budget.
Social Security trustee Chuck Blahous comments, “To me, urgent doesn’t begin to describe it. . . . I would say we’re somewhere between critical and too late to deal with it.”
A shortfall of trillions of dollars in a single entitlement program is not something our nation can afford. When you combine this shortfall with the trillions in unfunded liabilities in Medicare and Medicaid, and join that with the trillion-dollar deficit the federal government now posts every year, and add that to our current national debt of $16 trillion – you get a level of indebtedness that will shatter the United States.
Nothing can protect us once we accumulate this kind of ruinous debt – not our military, not our scientists, and not our politicians. The only solution is to make tough decisions to restructure our entitlements today so that we don’t saddle our children with this disastrous debt tomorrow.
MEMBER OF CONGRESS
Bay Area public officials break bank with unused sick time
2,138 hours of unused sick time boosts pension for Contra Costa sewer worker
State Auditor calls San Jose pension estimates 'unsupported'
Standard & Poor's downgrades Fresno's debt
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