16.2.13

GIMMICKS.

Via Media uses the behavior of the Argentinian government to make a case for proper funding of pensions.
What’s needed is an actuarially sound, adequately financed, conservatively invested pension system. Anything else is a gimmick. Unfortunately, there are lots of gimmicks floating around these days.
Yes, and there's plenty of blame to go around. The U.S. government's Pension Benefit Guaranty Corporation exists because capitalists invested too much of the pension money in too few stocks, or because bankruptcy offered an easy way out of those liabilities.  That same U.S. government made the annual "budget deficit" smaller by using current receipts to the "Social" "Security" "Trust" "Fund" in excess of current payments to cover other governmental expenses, writing the "trustees" an IOU.  Here in Illinois, a substantial part of the supposed shortfall in the various state pension funds is the absence of the return on absent investments that the state did not make, so as to be able to pay for other pet projects.  The state has been playing the same cash-flow games with other vendors.

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