Look who is getting screwed in the deal.

As Mish likes to say, what cannot be paid will not be paid.  Big, liberal labor and big liberal government told the little guy, "support us and we will protect you from the big bad world".   Otherwise known as the spider's invitation to the fly.  Today's ongoing proof point of my long standing thesis that the liberal fools who voted for liberal leadership are themselves going to be the biggest patsies of all comes in the form of this news article where the patsies are being set up for default.  Oh sure, they call it other things but failure to pay out the full amount of a contract is clearly default.  And the big boomer retirement peak hasn't even ramped up yet. 

It will start with planned reductions in payouts that will seem modest - 10% or something like that.  But folks, where there is smoke there is fire.  These pensions are only 30-50% funded when there is a stock and bond market peak.  What happens if the big deflationary trap door opens up as I believe it will?  That's right, 10% reductions will go to 70% reductions or more and those same liberal assholes who the foolish people voted into place to protect them will be those who are making it all nice and legal.

If you have the ability to cash out of the retirement system then do so because they are openly planning a legal robbery of it and only a damned fool cannot see it.