Send a Tweet
Most Popular Choices
Poll Analyses
Share on Facebook 4 Share on Twitter Printer Friendly Page More Sharing
OpEdNews Op Eds    H2'ed 1/15/11

America Replicating Japan

By       (Page 8 of 9 pages) Become a premium member to see this article and all articles as one long page. (View How Many People Read This)   1 comment
Author 194
Message Stephen Lendman
Become a Fan
  (193 fans)

This piece was reprinted by OpEdNews with permission or license. It may not be reproduced in any form without permission or license from the source.

(4) "(T)housands of city and state governments will have no choice but to gut their budgets, declare bankruptcy, and in many cases, even shut down entirely."

As a result, an American Greek Tragedy possibly looms "in more ways than one." A million or more public workers may lose jobs as Washington and deficit-burdened/budget-strapped states, cities and local communities seek ways to cut costs. Way one is reducing staff levels, the largest expense. Others include debt and pension obligation defaults with trillions of dollars of liabilities at stake.

Public pensions, if fact, face a trillion dollar crisis. Orin Kramer, New Jersey State Investment Council chairman believes they're underfunded by over $2 trillion, citing independent research he commissioned. 

Separate, so-called OPEB (other post-employment benefits) obligations, are underfunded by at least another $530 billion, according to the congressional Government Accountability Office's November 2010 estimate, saying the figure is extremely conservative. Others put it at from $1 - $3 trillion. The combination of economic weakness and mounting debt obligations may mean inevitable debt and public pension defaults, as well as growing numbers of municipalities declaring bankruptcy because Washington won't help. 

At issue is a federal/Wall Street scheme to reengineer governments, downsizing them for profit at public worker expense through lower pay, fewer benefits, and lost pensions to protect as many debt holders as possible. Also to force cash-strapped states, cities and communities to sell public assets cheap so banks and other corporate raiders can grab them at fire sale prices.

On January 7 in testimony before the Senate Budget Committee, Fed chairman Bernanke said:

"We have no expectation or intention to get involved in state and local finance." States "should not expect loans from the Fed," nor help from the Obama administration and Congress in discretionary budget austerity mode.

In their March 2010 "Trillion-Dollar Pension Crisis Looms Large Over America" article, writers Paul Ingrassia and Imogen Rose-Smith suggested "pension fund accountants might consider" asking: 

Next Page  1  |  2  |  3  |  4  |  5  |  6  |  7  |  8  |  9

 

Must Read 2   Well Said 2   Interesting 1  
Rate It | View Ratings

Stephen Lendman Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

[My newest book as editor and contributor is titled "Flashpoint in Ukraine: How the US Drive for Hegemony Risks WW III." www.claritypress.com/LendmanIII.html]

Stephen Lendman was born in 1934 in Boston, MA. In 1956, he received a (more...)
 

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The McCain-Lieberman Police State Act

Daniel Estulin's "True Story of the Bilderberg Group" and What They May Be Planning Now

Continuity of Government: Coup d'Etat Authority in America

America Facing Depression and Bankruptcy

Lies, Damn Lies and the Murdoch Empire

Mandatory Swine Flu Vaccine Alert

To View Comments or Join the Conversation: