Coming Question: Retirement Pensions, or Municipal Bond Interest Payments

Here’s a thought:

At some point the taxing ability of the states and cities (gutted thanks to NAFTA and the Chinese/American agreement, hidden by bloated housing prices, exposed by the busting of the housing bubble) is going to get to the point where some hard choices will be made. More to the point, there’s only going to be so much to cut before there’s no police, fire or ambulance service, and there’s only so much you can do with stop signs at important intersections – even with potholes the size of Rhode Island to slow down traffic with and the local housing stock stripped of anything of worth and thus made uninhabitable.

And when the states, counties and cities get to that point, the question will arise: Stop paying the muni bonds, or stiff the retirees?

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As anyone who keeps a long eye on the Supreme Court knows, government entities must come through fully on their promises of retirement monies to their employees. “Private” (read: non-governmental) corporations are allowed to gut retirement funds, then turn around and offer 401Ks (which gut Social Security); whereas government employees who stick around long enough are given a retirement complete with COLA.

This, of course, leads to heavy envy and hatred of Government employees by Fox News watchers and other envious types. But also consider that this means that government is on the hook for this stuff ABOVE EVERYTHING ELSE.

But, and you should see the contrast, government is also expected ABOVE EVERYTHING ELSE to pay off its loans and bonds.

So we get a conundrum: Which is TRULY number one?

– – – – – – – – – –

It wouldn’t surprise me to find out that this has been going up the courts right now, that some canny right wing “pro-investment rights” group is going against a “pro-labor-facade” group to make it to the Supreme Court. Just like some “pro-free-speech” group took the case that translated one-man-one-vote to one-buck-one-vote to the Supreme Court (don’t know the name, we all know the case). And with Roberts as head, don’t be surprised if the government is forced to oppress its own employees for the sake of “the grandmas who invested in the munis.”

And watch Blackwater suddenly become active with its new branches – the Army, the Navy, the Air Force, the Marines, and the Coast Guard.

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