It has been said that an actuary is someone who really wanted to be an accountant but didn´t have the personality for it. See who´s laughing now. Things are starting to get very interesting, actuarially-speaking. Federal bankruptcy judge Christopher Klein ruled on April 1 that Stockton, Calif., can file for bankruptcy via Chapter 9 (Chapter 11´s ugly cousin). The ruling may start the actuarial dominoes falling across the country, because Stockton´s predicament stems from financial assumptions that are hardly restricted to one improvident California municipality.
This has been known for years and California politicians have been defrauding the citizens of the state to satisfy labor unions. The public pension problem will only get worse. For California there are only two possible solutions (that they will live with), tax the rich more or just raise everyone´s taxes including business. As the dems say, it isn´t a spending problem it is a taxing problem.
Last week after the decision, Martin Armstrong was all over this within 48 hours.
And he pointed out the irony of the pensions (poster child here- CALPERS) being the dark force providing the dynamic to jettison the entrenched collective bargaining agreements. Of course the LATimes and NYTimes cannot report such reality
Consider the dilemma of the left-wing accounting student.
He knows it´s crazy and impossible ( to believe in leftist ideas) but he also knows that it´s so much easier to get laid in college as a liberal.
The conservative girls are so.....well you know.
Fortunately....(IMHO)....white male conservatives are very close to that point in their personal reincarnation progress that they may not have to return to this planet again. A truly self-sufficient, independent, sweet and loving person need not be subjected to this ship of fools too many more times.
The 8% interest rate assumption dates to the Carter era. Treasuries were yielding 15-20% and the actuaries at the time were still using 5% [because it worked well over lifetimes.] The IRS wanted to grab money from those wealthy employers by taking away big tax deductible contributions by forcing the use of 8%. Well history is repeating. When Ben Bernanke´s monetary expansion kicks inflation up to double digits again, the many underfunded plans will have again have portfolios annually yielding double digits and the benefits will then be payable in "monopoly money." The union workers will have cast all necessary votes by then for Obama and Brown to be emperors for life.
To bad we all can´t work for the government or school systems and collect multi hundred thousand dollar a year pensions for life after retiring at age 55. That´s the Obama utopia isn´t it. Everybody works for the government and gets rich off printed money.
1. In 1999 California legislators and governor Gray Davis decided to enrich the benefits paid out by CalPers. They claimed it wouldn´t cost cities anything because they projected that the rate of return of the late 90´s would continue on for the foreseeable future. At a minimum, retirement benefits should be reset back to what it was before this raid.
2. Private pensions are in better shape than public pensions because private pensions combine unrealistic rates of return with unrealistically low interest rate assumptions, which forced private companies to contribute billions more to their pension plans than they would need if interest rates go up.
California´s shortfall is chickenfeed compared to the 60-odd TRILLION of dollars uf unfunded liabilities the US government has amassed. Federal pensions and retirement goodies and military veteran´s benefits comprise the bulk of this monstrosity. Like people iterate and reiterate, if a private enterprise organized its affairs as judiciously as our enlightened US government, the managers thereof would be serving long, long prison sentences. Think Bernie Madoff long.
RUSH: Let´s go to the audio sound bites. The gross domestic product number is out. And, by the way, I don´t know what this is. There´s a new way of measuring the GDP. The Obama administration is measuring it in an entirely different way, which is showing growth. The standard measure of gross domestic product is showing flat. But this new measure, which the media is applauding and loving, is showing a growth rate of 1.7%, and it´s being hailed. The stock market earlier today was having a pretty good day.
RUSH: In one hour, we´re gonna have Utah Senator Mike Lee on the program to explain in detail and in an understandable way what he´s trying to do. As you know, Mike Lee is leading the effort to defund Obamacare in the United States Senate. The entire Republican establishment has aligned against him. Consultants, establishment bigwigs, party bigwigs, even some donors have aligned against him because they are convinced that attempting to defund Obamacare at the next negotiation, the end of September, on a continuing resolution will lead to a government shutdown,
RUSH: Here´s Brad in Lancaster, Pennsylvania. It´s great to have you on the EIB Network. Hi. CALLER: Mega dittos, Mr. Limbaugh. A pleasure to speak to you. I told your call screener there that I am an attorney. I teach law. I´m a former public official and a Republican, and I advise my clients and my students, "You can´t take legal advice from the people across the table. They´re going to give advice, obviously, that is in favor of their position." RUSH: Exactly. CALLER: That sounds so obvious, why even say that, right?
IRS-Gate: From stonewalling Congress to Federal Election Commission collusion to harassment of already-tax-exempt conservative groups, the IRS scandal metastasizes. Someone high-up was clearly giving orders. ´Phony scandals," to use President Obama´s term, should not generate near-daily news coverage from a media that would like nothing better than to see its dream president let off the hook. Yet everywhere you look comes another bolt of lightning keeping this Frankenstein monster "alive!": • In addition to conservative organizations being ultra-scrutinized in applying for tax-exempt status, existing conservative groups like Morton Blackwell´s Leadership Institute, around since 1979, and the
So why did the French Revolution — initially premised on the ideas of liberty, equality and fraternity — come to be defined by the guillotine, regicide, rivers of blood and the Reign of Terror? To reveal a common historic error, the revolution didn´t start pristine and somehow get hijacked by the likes of Maximilien de Robespierre. He and his notorious Committee of Public Safety ruled through terror and systematically beheaded thousands at the guillotine. The violence was there from the very start, in the bloodcurdling words of the revolution´s propagandists — journalists, pamphleteers and writers, some of whom
The good news is that the Commerce Department´s second-quarter GDP report shows that the U.S. is richer and the economy larger than previously believed. The bad news is that this has nothing to do with anything that has happened lately, and certainly not in the last nine months. The current not-so-great economic recovery trudges on. *** Wednesday´s second quarter report is especially interesting because it includes economic revisions based on new assumptions that re-measure the size of the U.S. economy going back to 1929. The Bureau of Economic Analysis does this every five years or so,
Graft: The relationship between the Clintons and the wife of embattled Anthony Weiner grows curiouser and curiouser. Forget sexting; this may be the real scandal. And one senator sees a possible criminal element to it. Republican Chuck Grassley, ranking member of the Senate Judiciary Committee, is demanding documents from the State Department shedding more light on the private consulting work that Huma Abedin, aka Mrs. Weiner, performed while working for the government, where she had access to top secret information. Abedin served as former Secretary of State Hillary Clinton´s deputy chief of staff, where she earned $135,000 a year.
If we learned anything about Barack Obama in his first term it is that when he starts repeating the same idea over and over, what´s on his mind is something else. The first term´s over-and-over subject was "the wealthiest 1%." Past some point, people wondered why he kept beating these half-dead horses. After the election, we knew. It was to propagandize the targeted voting base that would provide his 4% popular-vote margin of victory—very young voters and minorities. They believed. He won. The second-term over-and-over, elevated in his summer speech tour, is the shafting of the middle class. But
President Obama promised to mend the failings in the American health-care system, and yet for cancer treatment, ObamaCare is taking a rotten feature of the old system and making it worse. The Affordable Care Act expands a program called 340B, which siphons money from drug makers and insurers to subsidize certain hospitals. The program has been expanded as a way to offset some of the cuts that the law imposes on hospitals. One significant side effect: 340B is increasing the cost of cancer care—and harming its quality. When the program began in 1992, its aim was to support
Most Americans would agree that academic freedom is a sacred right of the academy and crucial to the American experiment in democracy. But what is it really? That´s the question raised by the Associated Press´s July 16 release of emails between Mitch Daniels, when he was the governor of Indiana, and his staff concerning Howard Zinn´s "A People´s History of the United States." The emails were written in 2010 and Mr. Daniels, whose second term as governor ended this January, is now president of Purdue University in Indiana. Published in 1980, Zinn´s "A People´s History"
Fiscal Policy: President Obama has proposed a "grand bargain" with Republicans: They get a tax cut for corporations, he gets more money to spend on worthless government stimulus. That´s no bargain — that´s surrender. In the latest attempt by Democrats to disguise GOP capitulation as centrist "compromise," Obama said he´ll sign off on a cut in the corporate tax rate from 35% to 28% — with an even lower rate of 25% for manufacturers — if Republicans will agree to spend more on Obama´s "investments" and OK a tax hike on U.S. companies doing business overseas.
In Chattanooga on Tuesday, the latest stop on his economic inequality tour, President Obama made himself an offer he couldn´t refuse. If Congressional Republicans agree to a corporate tax increase, he said, then he´ll agree to spend more money on his favorite public-works projects. If Republicans bargain hard, will he also offer an expansion of ObamaCare as a sweetener? We know this sounds like an exaggeration, but that´s the essence of what the President proposed as what he called a new "grand bargain." Mr. Obama will agree to reform the corporate tax code—a GOP priority and one
Arizona Sen. John McCain was the Republican Party´s 2008 presidential nominee and he still wants the keys to the Oval Office. But he is beginning to sound more like a fan of likely 2016 Democratic presidential candidate Hillary Clinton. "She´s a rock star," he said in a newly released interview. "She has, maybe not glamour, but certainly the aura of someone widely regarded throughout the world," he added in a reference to her work as secretary of State. McCain, reportedly trying to win back his reputation as a GOP maverick, was asked by the New Republic
President Obama has been rolling up his sleeves campaigning across the country delivering a surreal stump speech message supposedly aimed at the middle class: big government works, Obamacare is manna from heaven, the wave of recent scandals are “phony” figments of the imagination, and all economic problems are the fault of the Republicans. Conveniently, he leaves out the bankruptcy of Detroit, a city run by his own party for more than half a century. His message is so stale and unconvincing, that even The New York Times and Washington Post have noticed. Both papers, usually loyal to Obama, remarked that
FORNEY, Texas - George Zimmerman, the former Florida neighborhood watch leader cleared of all charges in the shooting death of Trayvon Martin, was pulled over for speeding in North Texas on Sunday, CBS DFW reports. According to the station, Zimmerman was armed when officers pulled him over on Highway 80 in Forney, east of Dallas. (Snip) The officer reportedly did not recognize Zimmerman, who was driving a Honda pickup. Zimmerman told the officer he was armed and was then told to put the weapon in his glove compartment, according to the station.
Gotta figure her lead would be even bigger without Joe Miller in the field here. Her nomination for the taking? Alaska should be a top tier pick up opportunity for Senate Republicans next year…but their top choice of a candidate is Sarah Palin. 36% of GOP primary voters in the state say they’d like Palin to be their standard bearer against Mark Begich to 26% for Mead Treadwell, 15% for Dan Sullivan, and 12% for Joe Miller.
Embattled Internal Revenue Service official Lois Lerner and an attorney in the Federal Election Commission’s general counsel’s office appear to have twice colluded to influence the record before the FEC’s vote in the case of a conservative non-profit organization, according to e-mails unearthed by the House Ways and Means Committee and obtained exclusively by National Review Online. The correspondence suggests the discrimination of conservative groups extended beyond the IRS and into the FEC, where an attorney from the agency’s enforcement division in at least one case sought and received tax information about the status of a conservative group,
Sen. John McCain — a Democrat? There was confusion Wednesday after the Arizona Republican mistakenly strolled into President Obama’s meeting with Senate Democrats at the Capitol. The room full of Democrats — who happened to be meeting in the same room where the Senate GOP usually holds their weekly policy luncheons — erupted in applause and laughter as the former Republican presidential candidate made his entrance. As McCain, 76, walked out of the Dem-filled space, reporters pressed him as to why he stepped foot in the room.
In an interview on National Public Radio (NPR), House Minority Leader Nancy Pelosi said her new agenda for women will give mothers access to day care so they can “earn without carrying the burden of child care.” During the interview, aired on Weekend Edition Sunday, Pelosi spoke about her newly announced agenda, which is on her website, and is titled, “When Women Succeed, America Succeeds: An Economic Agenda for Women and Families,” a plan that includes universal pre-school and access to day care for working women, and an increase in the minimum wage.
Karl Rove and more than one hundred Republican donors sent a letter to Republican members of Congress on Tuesday, urging them to pass a comprehensive immigration reform bill that would include, among other provisions, granting "legal status" to illegal aliens who meet certain criteria. Anticipating that lawmakers will face resistance to the bill when they go home for the August recess, the letter marks the escalation of a campaign in which Republican leaders and donors are pressuring House Republicans to act on an immigration reform bill.
No matter how much you may hope for it, it seems unlikely that you´ll be using the phrase "Senator Sarah Palin" with any great regularity in 2015. A new poll indicates that the former Alaska governor is about as popular in the state as Barack Obama — which is to say, not very popular at all. But even more surprising, while the former vice presidential candidate has made Alaska a central part of her public image, the state´s residents split on the question of whether Palin is all that Alaskan. Conducted by Public Policy Polling,
In her first speech since taking over the Environmental Protection Agency, Gina McCarthy came out swinging Tuesday and promised to ramp up the aggressive climate change agenda laid out by President Obama.(snip)“Can we stop talking about environmental regulations killing jobs? Please, at least for today,” she said during remarks at Harvard Law School. “We need to cut carbon pollution to grow jobs. We need to cut carbon pollution to strengthen the economy. Let’s talk about it positively. Let’s approach this as an opportunity of a lifetime. There are too many lifetimes at stake.”
A sex tape that Monica Lewinsky recorded for Bill Clinton at the height of their scandalous affair has leaked, during which the former White House intern is heard planning a secret sexual rendezvous with the president and declaring she is “too cute and adorable” to be ignored. On the audio tape obtained by The National Enquirer, Lewinsky at one point tries to seduce the commander in chief: “I could take my clothes off and start… well… I know you wouldn’t enjoy that? I hope to see you later and I hope you will follow my script and do what
Hollywood actor Kevin Spacey — whose most recent work includes the psychological thriller, “House of Cards,” about an unethical congressman — said in a recent interview that most Americans just aren’t grasping President Obama’s greatness. “President Obama will go down as having passed some of the most historic bills in the history of this country,” he said, in a recent talk with Hot Press magazine. “That despite constant knee-jerk opposition from the Republicans. A lot of people don’t realize how much he’s done in the most difficult circumstances.” Mr. Spacey is far less appreciative of Congress. “It’s maybe interesting