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California Faces It's Public Sector Demons

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The more I read, the more it seems that America are on the same path as us, just a few years ahead:

Arnie: Public Pensions and Our Fiscal Future

http://online.wsj.com/article/SB10001424052748703447004575449813071709510.html

Spending on California's state employees over the past decade rose at nearly three times the rate our revenues grew, crowding out programs of great importance to our citizens. Neglected priorities include higher education, environmental protection, parks and recreation, and more.

Much bigger increases in employee costs are on the horizon. Thanks to huge unfunded pension and retirement health-care promises granted by past governments, and also to deceptive pension-fund accounting that understated liabilities and overstated future investment returns, California is now saddled with $550 billion of retirement debt.

Few Californians in the private sector have $1 million in savings, but that's effectively the retirement account they guarantee to public employees who opt to retire at age 55 and are entitled to a monthly, inflation-protected check of $3,000 for the rest of their lives.

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The more I read, the more it seems that America are on the same path as us, just a few years ahead:

Few Californians in the private sector have $1 million in savings, but that's effectively the retirement account they guarantee to public employees who opt to retire at age 55 and are entitled to a monthly, inflation-protected check of $3,000 for the rest of their lives. [/i]

Inflate your way out of that one Benny boy! :lol:

The clock is ticking - The Elites Have Lost The Right to Rule

http://www.zerohedge.com/article/elites-have-lost-right-rule

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The more I read, the more it seems that America are on the same path as us, just a few years ahead:

Arnie: Public Pensions and Our Fiscal Future

http://online.wsj.com/article/SB10001424052748703447004575449813071709510.html

Spending on California's state employees over the past decade rose at nearly three times the rate our revenues grew, crowding out programs of great importance to our citizens. Neglected priorities include higher education, environmental protection, parks and recreation, and more.

Much bigger increases in employee costs are on the horizon. Thanks to huge unfunded pension and retirement health-care promises granted by past governments, and also to deceptive pension-fund accounting that understated liabilities and overstated future investment returns, California is now saddled with $550 billion of retirement debt.

Few Californians in the private sector have $1 million in savings, but that's effectively the retirement account they guarantee to public employees who opt to retire at age 55 and are entitled to a monthly, inflation-protected check of $3,000 for the rest of their lives.

If there was an exodus of people from Cali then who would pay the pensions?

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If there was an exodus of people from Cali then who would pay the pensions?

There are millions across the border who would given a chance.

The question will be, who blinks first, the State Government or the rednecks with assault rifles and a grudge?

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What right does anyone have to a pension? Who said anything about the right to retire?

IIRC, the original plan was that mankind would work ALL of his days.

The best plan is for the older people to be supported by their FAMILY instead of being discarded into some overpriced retirement camp (home).

The Southern Europeans are quite good at looking after parents and the Chinese are also quite adept.

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If there was an exodus of people from Cali then who would pay the pensions?

I was born and raised in California and left 5 years ago.

The public sector pension schemes in California and other states are obscene. From my personal experience, you would have been far better leaving school early and becoming a clerk or labourer for the local government then working hard at school, getting a graduate degree and working 80 hours a week in the private sector. No joke -- I have several family members who took cushy public sector jobs because they couldn't get into university and are now about to retire (in their late-40's after 25 years of working) with pensions worth $3-$6 million.

I think the Tea Party is filled with lunatics and idiots, but the anger is understandable (and never addressed in the media). A lot of people are starting to realise that they've been completely shafted, left with nothing, while others are living life on easy street.

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I was born and raised in California and left 5 years ago.

The public sector pension schemes in California and other states are obscene. From my personal experience, you would have been far better leaving school early and becoming a clerk or labourer for the local government then working hard at school, getting a graduate degree and working 80 hours a week in the private sector. No joke -- I have several family members who took cushy public sector jobs because they couldn't get into university and are now about to retire (in their late-40's after 25 years of working) with pensions worth $3-$6 million.

I think the Tea Party is filled with lunatics and idiots, but the anger is understandable (and never addressed in the media). A lot of people are starting to realise that they've been completely shafted, left with nothing, while others are living life on easy street.

Where in Cali?

I first lived there (La Jolla) in 1972, got my BA from UCSD and lived there off and on up to 2003 when I sold my last house in 2003.

3 booms and bust since 1972 and an economy that mirrors the UK in many ways--HPI obsessed and a lack of land in the desirable places (the narrow coastal strip E of 15). HPI comes and the people leave so there is a crash. And on and on it goes (went). Ireland did a CA and now they have ghost towns like Riverside County.

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Where in Cali?

I first lived there (La Jolla) in 1972, got my BA from UCSD and lived there off and on up to 2003 when I sold my last house in 2003.

3 booms and bust since 1972 and an economy that mirrors the UK in many ways--HPI obsessed and a lack of land in the desirable places (the narrow coastal strip E of 15). HPI comes and the people leave so there is a crash. And on and on it goes (went). Ireland did a CA and now they have ghost towns like Riverside County.

I grew up in Fresno ("Raisin Capital of the World"). Went to an ivy league college and business school on the East Coast, then worked for a bank in San Francisco. Sold my house in Berkeley in January 06 at the very top of the market. I know a ton of people who have just about killed themselves working 80 hour weeks in tech, banking or consulting, and none of them have had the pay-offs that my relatives in cushy public sector jobs have received (ok, I know one person who has worked for Google for a while who can now buy a small country, but she's an outlier.)

The population of California has doubled in my lifetime, and despite looking pretty big on the map, most of the state is uninhabitable. It's way too crowded, there's been no investment in people or infrastructure and the quality of life there has plummeted.

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I grew up in Fresno ("Raisin Capital of the World"). Went to an ivy league college and business school on the East Coast, then worked for a bank in San Francisco. Sold my house in Berkeley in January 06 at the very top of the market. I know a ton of people who have just about killed themselves working 80 hour weeks in tech, banking or consulting, and none of them have had the pay-offs that my relatives in cushy public sector jobs have received (ok, I know one person who has worked for Google for a while who can now buy a small country, but she's an outlier.)

The population of California has doubled in my lifetime, and despite looking pretty big on the map, most of the state is uninhabitable. It's way too crowded, there's been no investment in people or infrastructure and the quality of life there has plummeted.

...looks like the public sector are the real demons there....if it's like this across the Nation the Central Government need to focus on the waste and total destruction in the State infrastructure as this will eat away at national stability .... :rolleyes:

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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