Here is How USA Capitalism Works

You elect from identical candidates against a background of class warfare noise.  Either way you get wars you do not want, bailouts you disagree with and domed stadiums you did not vote for.  In all instances, the politicians push through bonds in which doubtful projects are supposed to pay back the bond, but cannot.  This is probably 90% of the USA economy, and takes massive staff to manage all this false economy.

This has spread to Spain, and here is an example:

One of Spain’s “ghost airports” — expensive projects that were virtually unused — received just one bid in a bankruptcy auction after costing some 1.1 billion euros ($1.2 billion) to build. The buyer’s offer: 10,000 euros....
Chinese group Tzaneen International tabled the single bid in Friday’s auction, Spanish news agency Europa Press said. The receiver had set a minimum price of 28 million euros. If no better bid is received by September, the sale will go through, the news agency said.

We have countless examples of the exact same thing happening at airports all over USA.  The San Jose airport was ruined, and now will never recover, the costs of the renovation.  Light rail, domed stadiums, tunnels are all built not for any infrastructure needs, but for the up-front fees charged to underwrite the bonds and the graft etc associated with the project.  Privatize the profits today, socialize the losses tomorrow.  That is capitalism, since at its heart is the interest on the debt, something always damaging and never necessary.  That vast army of clerks to keep tally on all of this expects to retire on the investment proceeds from these deals.  Condign punishment, I guess.

To recap, when it comes to underfunded pension liabilities, one major concern is that in a world characterized by ZIRP and NIRP, it’s not entirely clear that public pension funds are using realistic investment return assumptions. The lower the return assumption, the larger the unfunded liability. After 2008, Moody’s stopped relying on the investment return assumptions of cities and states opting instead to use its own models. Unsurprisingly, this led the ratings agency to adopt a much less favorable view of state and local government finances and as WSJ reported, rather than admit that their return assumptions are indeed unrealistic, local governments have opted to drop Moody’s instead.
The debate underscores a larger problem in America. Almost half of the states in the union are facing budget deficits.

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