The crisis of grossly underfunded public pension plans
How badly underfunded are the public pension plans in your state? The interactive map below will give you an idea and the picture is not a pretty one. This is from a follow-on article from Mish's Global Economic Trend Analysis in which he is specifically examining the looming crisis in New Jersey.
The estimate of the unfunded public pension liability in the United States is an astounding $3 trillion as calculated by the American Enterprise Institute. This represents yet another ticking economic time bomb that will only be addressed when the situation grows dire and the states assumptions for returns on their portfolios prove impossible to achieve (i.e. New Jersey estimates are for an annual 8.25% portfolio return).
If the map below doesn't load or your state is cut off, click on this link.
Remember, as the quote by John Adams at the bottom of The Political Commentator reads,
“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.”