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To: Painesright

Unfunded liabilities are not the same as debt.

Compound interest accrues on debt; but not on unfunded liabilities. When interest payments can no longer be met; you’ve past the point of no return.

Governments have many ways to shed the liability for unfunded liabilities. So long as they avoid shafting too many people with guns, they can do so with impunity.

I’m not suggesting that unfunded liabilities aren’t a serious issue — just that it’s important to clearly define problems, if you actually want to solve them.


11 posted on 09/20/2010 9:32:43 AM PDT by USFRIENDINVICTORIA
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To: USFRIENDINVICTORIA
Compound interest accrues on debt; but not on unfunded liabilities.

True, but can't you (kind of) say that inflation accrues on unfunded liabilities? They take $100 from my check today and give me back less (in inflation adjusted dollars) when I retire.

14 posted on 09/20/2010 9:40:38 AM PDT by dartuser
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