{"id":22287,"date":"2016-12-18T15:34:06","date_gmt":"2016-12-18T20:34:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=22287"},"modified":"2016-12-18T15:34:06","modified_gmt":"2016-12-18T20:34:06","slug":"former-fed-advisor-state-pensions-time-bomb-spells-disaster-for-the-us","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=22287","title":{"rendered":"Former Fed Advisor: State Pensions Time Bomb Spells Disaster For The US"},"content":{"rendered":"

Former Fed Advisor: State Pensions Time Bomb Spells Disaster For The US<\/a><\/h3>\n
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Underfunded government pensions to the tune of $1.3 trillion, with a gap that just can\u2019t be filled, is the ticking time bomb facing the US economy which faces dramatic cuts in public services – and potentially riots reminiscent of Athens six years ago – according to former Federal Reserve advisor, and President of Money Strong, Danielle DiMartino Booth.<\/p>\n

As she picks apart the danger signs with the US on the precipice of recession, it\u2019s the impending pensions crisis that keeps her awake at night, sharing the gloomy sentiment laid out in an extensive March 2016 Citi report titled “The coming pensions crisis<\/a>.”<\/p>\n

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With few people taking part in what little recovery the US has had, and given how stretched pensions are, checks are going to have to be written from Washington sooner than you think, DiMartino Booth told Real Vision TV in an interview. \u201cThe Baby Boomers are no longer an actuarial theory,\u201d she said. \u201cThey’re a reality. The checks are being written.\u201d<\/p>\n

A Bulldozer Couldn\u2019t Fill the State Pensions Gap<\/strong><\/p>\n

The $1.3 trillion pensions deficit just takes into account state and municipal obligations, and with promised returns of 8% and funds compounding at 3% for decades it will take nothing short of an economic miracle to recover.\u00a0 \u201cThe average state pension in the last fiscal year returned something south of 1%. You cannot fill that gap with a bulldozer, impossible,\u201d DiMartino Booth said. \u201cAnyone who knows their compounding tables knows you don’t make that up. You don’t get that back unless you get some miracle.\u201d<\/p>\n

The last time we saw significant market weakness, the baby boomers pretty much accepted that they would be retiring at 70 instead of 65, she added. \u201cWell, guess what? They’re turning 71. And the physiological decision to stay in the workforce won’t work for much longer. And that means that these pensions are going to come under tremendous amounts of pressure.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Former Fed Advisor: State Pensions Time Bomb Spells Disaster For The US Underfunded government pensions to the tune of $1.3 trillion, with a gap that just can\u2019t be filled, is the ticking time bomb facing the US economy which faces dramatic cuts in public services – and potentially riots reminiscent of Athens six years ago […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[13492,303,14598,3650,4318],"class_list":["post-22287","post","type-post","status-publish","format-standard","hentry","category-economics","tag-danielle-dimartino-booth","tag-fed","tag-state-pensions","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22287"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22287\/revisions"}],"predecessor-version":[{"id":22288,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22287\/revisions\/22288"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}