RightField
Literotica Guru
- Joined
- Jun 30, 2003
- Posts
- 9,361
Renewable Energy Generation, a UK wind-energy company, lost almost $2M this year. The cause, they explained, "abnormally low wind speeds across the UK".
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*chuckle*
http://www.americanthinker.com/2011/03/another_fine_pension_mess.htmlAmidst the raucous squawking occasioned by Obama's Kinetic Military Action in Libya, a story has gone unremarked in the general press. It concerns the pension tsunami that is looming at all levels of government.
The story is the flimsy state of the Pension Benefit Guaranty Corporation (PBGC). It is covered magisterially in a new paper written by the fine economist Charles Blahous of the Mercatus Center at George Mason University. Entitled "The 'Other' Pension Crisis: Options for Avoiding a Taxpayer Bailout of the PBGC," it is easily found on the internet, and is a real eye-popper.
The PBGC is an ill-conceived, federally chartered corporation, established in 1974 in the wake of several business failures that left their pension funds broke. Congress, in effect, set up an agency to guarantee pensions negotiated between private industry and private industry unions; the taxpayer would be the guarantor of last resort for particular private pension contracts.
As such, the PBGC wasn't just redundant (duplicating Social Security's initial purpose) but was and is the ultimate exercise in moral hazard. It encouraged unions to demand unsustainably high pension plans, and companies to grant them, because all parties knew that the U.S. would be there no matter what.
Blahous starts by reviewing the current unfunded liabilities facing the PBGC. Its single-employer pension insurance covers about 33.8 million workers in some 26,000 plans. If a plan fails, the PBGC assumes both its assets and its liabilities (obligations). The fund pays the employees their pensions, up to $55,000 a year. As of last year, it was already paying out about $5.6 billion to over 800,000 retirees.
Now, PBGC's official deficit -- the amount it is obligated to pay out not covered by its asset base -- stands at $21.6 billion, nearly the highest it has ever been. But Blahous notes that even the PBGC estimates that its "reasonably possible" risk (i.e., the underfunded liabilities of the plans with below investment grade ratings) is more like $170 billion. That is just for the single-employer pension plans. Last year, the "reasonably possible" risk in multi-employer plans was an additional $20 billion.
Worse, he notes that three years ago, the PBGC stopped estimating the total underfunding of all the pensions it covers. That is believed to be in the hundreds of billions of dollars, but the PBGC won't even try to guess.
To close even the projected pension deficits, the PBGC reckons that the yearly contributions companies have to make would have to increase five-fold over the next five years -- up to $250 billion annually -- rather than the current meager $50 billion.
Someone wrote the other day....
If what's going on in Libya is considered kinetic military action then
Jihad = Kinetic Islam.
Lets say for a minute (no more than that) that LT, Luke, UD and the others of similar ilk are correct, that all our problems can be fixed by taxing the rich and if we do that, no one else will have to pay a penny and our economy will bloom like a flower in the desert after the first spring rain.
We've said that there isn't anywhere near enough money in the hands of the rich to pay for the many demands these guys make (more entitlements, Obamacare, greater public sector retirement beneftis - or keep them the same anyway). When we make those points, we're usually met with blather and ad hominum attacks, you know, you've all seen it hundreds of times.
Here's an amusing video that deals with a large part of this discussion we've had. It's counter-argument to their point done by couple "down-to-earth" midwesterners and is called "Lets eat the rich" with the basic premise to take all the money that the rich have in order to sate the democrat demands for more manna.
http://www.realclearpolitics.com/video/2011/03/31/bill_whittle_on_eating_the_rich.html
!
Great video, but there's one big problem: he's presenting facts. We all know what that means.![]()
They'll say it's a lie, and attack you as if you made it.![]()