Zero Hedge: An audible gasp went out in the breakout room I was in at last month’s pension event cosponsored by The Civic Federation and the Federal Reserve Bank of Chicago. That was when a speaker from the Chicago Fed proposed levying, across the state and in addition to current property taxes, a special property assessment they estimate would be about 1% of actual property value each year for 30 years.
Evidently, that wasn’t reality-shock enough. This week the Chicago Fed published that proposal formally. It’s linked here.
It surely ranks among the most blatantly inhumane and foolish ideas we’ve seen yet.
Homeowners with houses worth $250,000 would pay an additional $2,500 per year in property taxes, those with homes worth $500,000 would pay an additional $5,000, and those with homes worth $1 million would pay an additional $10,000. more …
Opinion: Our post November 16, 2017:
The problem, Virginia, is that Keynesian academics from the progressive left pegged pension benefits to an 8% return that has not happened since Adam, and there is simply not enough money to pay promised benefits.
- CalPERS has a 10 year return 5.1%
- Dallas police and fire pension has a 10-year annualized return of 2 percent
So who will pay the bill for millions of government municipal workers who were promised a generous retirement check, complete with medical benefits, after serving only 20 years?Many could be in retirement for 40 or more years.
With tens of trillions in unfunded liabilities, the weight of an avalanche remains dangling over our heads. An aging population is cashing in on needed retirement benefits while the younger generations must support multiples that are unsustainable financially.
Somewhere between the retiree that needs clothing, food, and lodging, and the bankruptcy of cities and state governments, are the makings of the next economic crisis.
Revelation 6:5-6 prophecies scarcity on earth:
“When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.”