Recently I have been reading that republicans are looking for
changes to the law that will allow states to go bankrupt. Their
intention is to eliminate public sector pensions.
Now, aside from the fact that public sector workers did earn
those pensions, there are a few other traps in that thinking.
Did it ever occur to any of them that a state going bankrupt
could, and maybe would have to, wipe out all their bonds?
Highway bonds, construction bonds, school bonds, etc.
Did it occur to anyone that a state going bankrupt might leave
an opening for the creditors, including the pension funds, to
apply to force the state to take every available avenue to avoid
it?
Indiana leased the administration of their toll road to a South
American country for a very large sum. That company raised tolls
and are making a profit. Could the state be force to cancel the
lease? The Chicago Skyway was similarly leased, could that lease
be canceled?
Next step... could those laws be used to allow the federal
government to go bankrupt? If so, wouldn't all military pensions
and medical care be on the same chopping block as the civilian
pensions? Wouldn't all legislators and governors, current and
former, state and federal, and presidents, also lose their
pensions and other benefits?
Think that one over.
BOB KLAHN
bob.klahn@sev.org http://home.toltbbs.com/bobklahn
... Time is the best teacher, but it kills off all its students.
--- Via Silver Xpress V4.5/P [Reg]
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