“In April Moody’s Investors Service warned it could downgrade the ratings of Chicago, Cincinnati, Minneapolis, Portland and 25 other local governments and school districts as part of a change in how it factors public pensions into debt grades,” writes Forbes. “In Chicago, teachers’ pensions alone cost $1 billion a year, while overall debt service accounts for close to a quarter of the city budget.” The top 10 biggest U.S. cities on the brink of pension bankruptcy According to Business Insider, here are the top 10 U.S. cities whose pension obligations will soon collapse: (this article was originally published in 2010, so we have updated the “years” to reflect 2013) #1 Philadelphia - Unfunded liability of $9 billion, $16,696 per household, only 1 year before the pension accounts are empty #2 Chicago - Unfunded liability of $44.8 billion, $41.966 per household, money runs out in 4 years #3 Boston - Unfunded liability of $7.5 billion, $30,901 per household, money runs out in 4 years #4 Cincinnati - Unfunded liability of $2 billion, $15,681 per household, money runs out in 5 years #5 St Paul - Unfunded liability of $1.4 billion, $13,686 per household, money runs out in 5 years #6 Jacksonville - Unfunded liability of $4 billion, $12,944 per household, money runs out in 5 years #7 New York City - Unfunded liability of $122 billion, $38,866 per household, money runs out in 6 years #8 Baltimore - Unfunded liability of $3.7 billion, $15, 420 per household, money runs out in 7 years #9 Detroit - Unfunded liability of $6.4 billion, $18,643 per household, money runs out in 8 years #10 Fort Worth - Unfunded liability of $2 billion, $7,212 per household, money runs out in 8 years Note that some of these numbers were actually optimistic. Detroit, for example, was predicted to run out of money in 2021, yet it already declared bankruptcy in 2013. What you are looking at here is a looming cascade of municipality bankruptcies over the next 10 – 20 years. WAKE UP AMERICA!!!!!!!!!! MESSAGE!!!!!!!!!! Mike Adams | Last week, Detroit declared bankruptcy, becoming the largest city in U.S. history to take such drastic action in the face of financial insolvency.
Posted on: Mon, 22 Jul 2013 16:30:20 +0000
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