Subj : National Bankruptcy.
To   : ALL
From : BOB KLAHN
Date : Tue Feb 01 2011 21:49:34


 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]
 * Origin: Doc's Place BBS Fido Since 1991 docsplace.tzo.com (1:123/140)

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