The judge overseeing Detroit's bankruptcy has restated both the law and the obvious, and that is pensioners are unsecured creditors. That means the banks and the providers of goods and services are paid before the pensioners are paid. Or, in other words, pensioners will be lucky to get pennies on the dollar, if anything.
This bankruptcy was inevitable and the good that comes out of it will be that no government worker can depend on his pension. That introduced into the calculation will assist in re-allocating resources. Right now wages are too high as employers compete with government for workers, and employers are obliged to overcharge to satisfy the taxes to cover the wages of the government workers.
Further, the existence of the state itself inhibits the freedom to contract and freedom from force and fraud that denies us to some extent to discover the unseen opportunities. Bankruptcies clear the deck of bad investment.
Anyone who believes the pensioners will eventually somehow be paid has not paid attention to history. The Roman clerks, the Chinese eunuchs, even the Samurai, when they are no longer of service, they are cut loose mercilessly.
What makes it merciless is the lack of hope for any alternative. In Moscow I saw men guarding very many empty buildings. I suppose that is a job. The military is not looking like a good option since we have an unbroken record of losing every war we start going back to the 1950s. And all other fields are rather moribund due to taxes and regulation.
All this leaves in terms of opportunity is the unseen. That can only be brought forth in freedom. But the problem is whoever was busy gathering up 70 million French phone calls one month is now coming back home, to do what? I guess gather up 70 million USA phone calls.
As with Obamacare, we are paying too much for a state that does too much. I talked to a women who is building a market for gluten-free mixes from her kitchen table, organizing production in one state and sales in another. She is finding customers that were not there before, the unseen.
We need to get away from the bad idea that there may be something to learn in snooping on others, and celebrate the discovering the heretofore unseen.
Retired cops are going to have an especially hard time converting their habits and inclinations into a job more than watching an empty building in Detroit. To get out of this mess will take personal transformation. Business start-up includes an element of personal transformation.
Don't wait to be told what you can know right now: your pension is unfunded, and no one owes you anything.
Feel free to forward this by email to three of your friends.
Oct 21 (Reuters) - The federal judge overseeing Detroit's bankruptcy filing called the city's pension funds "unsecured creditors" and stated that any special protections for them would violate federal bankruptcy law.Someone signing up for government work in say 1950, or 1960, or 1970, or 1980, or 1990 or any time could easily have seen this coming. There has been no time since the 1950s in which is was not common knowledge that there was no way that the pension schemes could work out. Nonetheless union leaders brought back pretend gains from negotiations, and the politicians pretended to give concessions that could not be fulfilled.
This bankruptcy was inevitable and the good that comes out of it will be that no government worker can depend on his pension. That introduced into the calculation will assist in re-allocating resources. Right now wages are too high as employers compete with government for workers, and employers are obliged to overcharge to satisfy the taxes to cover the wages of the government workers.
Further, the existence of the state itself inhibits the freedom to contract and freedom from force and fraud that denies us to some extent to discover the unseen opportunities. Bankruptcies clear the deck of bad investment.
Anyone who believes the pensioners will eventually somehow be paid has not paid attention to history. The Roman clerks, the Chinese eunuchs, even the Samurai, when they are no longer of service, they are cut loose mercilessly.
What makes it merciless is the lack of hope for any alternative. In Moscow I saw men guarding very many empty buildings. I suppose that is a job. The military is not looking like a good option since we have an unbroken record of losing every war we start going back to the 1950s. And all other fields are rather moribund due to taxes and regulation.
All this leaves in terms of opportunity is the unseen. That can only be brought forth in freedom. But the problem is whoever was busy gathering up 70 million French phone calls one month is now coming back home, to do what? I guess gather up 70 million USA phone calls.
As with Obamacare, we are paying too much for a state that does too much. I talked to a women who is building a market for gluten-free mixes from her kitchen table, organizing production in one state and sales in another. She is finding customers that were not there before, the unseen.
We need to get away from the bad idea that there may be something to learn in snooping on others, and celebrate the discovering the heretofore unseen.
Retired cops are going to have an especially hard time converting their habits and inclinations into a job more than watching an empty building in Detroit. To get out of this mess will take personal transformation. Business start-up includes an element of personal transformation.
Don't wait to be told what you can know right now: your pension is unfunded, and no one owes you anything.
Update: If you are in the SF Bay Area late February, I'll be Foothill DeAnza College is hosting an all-day import-export startup course.
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You may enroll here....
Feel free to forward this by email to three of your friends.
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