Friday, June 02, 2017

Their aim is to baffle you with bullshit. Right?

"Column Gov. Brown wants California to borrow from itself to fund employee pensions. Good idea."

"It seems that scarcely a day passes when our politicians aren’t exhorted to run government like a business, or like a couple pondering household finances over the kitchen table.

Usually this advice is misguided, since government has vastly different concerns and responsibilities from business or the typical household. But California Gov. Jerry Brown and Treasurer John Chiang have cooked up an idea that actually meets those standards, and makes sense.

Their idea is to borrow $6 billion from the state’s Pooled Money Investment Account and spend it on an extra payment to the California Public Employees’ Retirement System — that is, make an advance payment to CalPERS for pensions. 

The money would be repaid over eight to 12 years from the rainy day fund established by Proposition 2 of 2014. Chiang and Brown figure that the one-time payment will save the state and its localities $11 billion during the next 30 years via reduced CalPERS contributions. They say the idea isn’t much different from borrowing in the debt markets to make the payment, except in this case the state is effectively borrowing from and paying interest to itself."


The writer goes on to say that this isn't much different than making an additional mortgage payment. Except people don't put an additional mortgage payment on their credit card. And anyway this is so crazy I can't even figure out how this works. The writer somehow to think we have a magical "surplus" to borrow against.  But when I look around all I see is Jerry Brown making math mistakes.

Read: $1.9 billion error adds to California deficit projection. This article was just written in January.

All I know is that Baby Boomers are amazing at figuring out how to steal from the future. How is it even possible a State can borrow from itself. How does that work? And how do they consistently get the media to sell to this to you like it's the best thing since sliced bread? That is some Venezuela level shit right there.

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