2012/08/13 Leave a Comment
All unfunded government liabilities do not exist, because the government can simply refuse to pay them.
When push comes to shove, the historical fact is the government will simple refuse to pay its debt obligations or entitlement promises. The million dollar per family debt in 2012 will not be paid to whomever is owed the debt. Don’t be one of them.
In 1983 the government took at least 10% of the Social Security benefits for anyone born after 1959, when it raised the retirement age from 65 to 67 for those people born after 1959. The Social Security fund was saved for another 20 years.
In 2009, the government took some of the pension and health benefits from Delphi workers when GM went through government controlled bankruptcy. Another debt crisis solved.
Yes, the coming years will be painful, but the unfunded liabilities of all governments simply do not exist, because the government can simply refuse to pay them and the debt holder has no legal recourse to force the government to honor its promises. The Supreme Court of the United States has ruled that past congresses can not tie the hands of future congresses. If a future congress and president want to modify an existing promise then it is perfectly legal and constitutional for them to do so.
“Neither a borrower, nor lender be” when it comes to dealing with government.