The pension crisis is yet another downside of the Fed's quantitative easing that creates a Catch 22 for pension stewards. It makes it difficult if not impossible for pension fund managers to get a decent return by investing in low-risk federal securities.
As reports thicken of a possible deal between the White House and the House Republicans -- a deal which will supposedly avoid the rest of us going over some fiscal cliff on January 1 -- it is worth remembering at least four reasons why such a deal is probably best avoided.
There is indeed a real fiscal cliff that the United States is racing towards. It's the very same cliff that Europe has already dived over. That cliff is based on the collapse of our debt and dollar markets, resulting from the lost faith on the part of international investors.
Tea Party played a significant role in the debt limit debate, but how did they gain their leverage? The answer is the failure of the national government over a period of decades to recognize the magnitude of federal deficits and do something about them.