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State and Local Pensions Average 0.6% Return In 2016 (Despite 7.6% Return Assumption and Chronic Underfunding)

This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.

The US Federal government is spending at a fast and furious rate. US Federal Spending is rising at a staggering $428,253,120 per day while US Federal TAX Revenue is only rising at $129,857,760 per day. That is almost a ratio of 2x tax revenue.

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Meanwhile, US public debt is skyrocketing.

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While the Federal government further indebts citizens, the US personal savings rate in declining at a rate of 24% YoY.

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Then we have the underfunded pension funds of American, both private and public.  Public pension funds earned a dismal 0.6% in 2016

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According to the Center for Retirement Research at Boston College. public pension funds are also underfunded at 67.9% as of 2016.

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Rotten returns coupled with chronic underfunding. Add to this problem runaway Federal spending and public debt and Houston, we have a problem.

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Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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