Here's a special news-note for Alan, from a website run by that commie-loving Wall Street Journal:
Senate Majority Leader Mitch McConnell sparked a political firestorm last week when he said U.S. states should file for bankruptcy, if need be, rather than taking federal aid, which could amount to states scaling back or pulling the plug on their pension obligations.
“There’s not going to be any desire on the Republican side to bail out state pensions by borrowing money from future generations,” McConnell told conservative talk show host Hugh Hewitt last week. “I would certainly be in favor of allowing states to use the bankruptcy route,” he added.
So, the big retirement news of the moment is that the top Republican in Congress would prefer that public pensions default on their obligations to retirees. What’s more, he made the remarks on exactly the same day that Social Security and Medicare trustees warned their funds are going to be depleted before most middle-aged people ever see a nickel.
But the state pension systems are small potatoes compared with the real retirement story: Social Security and Medicare.
And McConnell was speaking just as the trustees of those two systems warned that they, too, are running out of money and will need a lot of extra cash. Just don’t call it a “bailout.”
Without extra money, Social Security will exhaust its trust funds in 15 years, the trustees warn. Medicare’s Hospital Insurance fund will be exhausted in just six.