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America’s Apocalyptic Debt Crisis: 63 Of America’s Largest 75 Cities Are Completely Broke

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Authored by Mac Slavo via SHTFplan.com,

The debt crisis in the United States of America has reached apocalyptic proportions.  A new and horrifying report out details the reason why 63 of America’s largest cities are completely broke: debt and overspending.

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According to a recent analysis of the 75 most populous cities in the United States, 63 of them can’t pay their bills and the total amount of unfunded debt among them is nearly $330 billion. Most of the debt is due to unfunded retiree benefits such as pension and health care costs.  That means those depending on that money, likely won’t see a dime of it. 

“This year, pension debt accounts for $189.1 billion, and other post-employment benefits (OPEB) – mainly retiree health care liabilities – totaled $139.2 billion,” the third annual “Financial State of the Cities” report produced by the Chicago-based research organization, Truth in Accounting (TIA), states. TIA is a nonprofit, politically unaffiliated organization composed of business, community, and academic leaders interested in improving government financial reporting.

Many state and local governments are not in good shape, despite the economic and financial market recovery since 2009,” Bill Bergman, director of research at TIA, told Watchdog.org.

The top five cities in the worst financial shape are New York City, Chicago, Philadelphia, Honolulu, and San Francisco. These cities, in addition to Dallas, Oakland, and Portland, all received “F” grades. In New York City, for example, only $4.7 billion has been set aside to fund $100.6 billion of promised retiree health care benefits. In Philadelphia, every taxpayer would have to pay $27,900 to cover the city’s debt. In San Francisco, it would cost $22,600 per taxpayer.

By the end of Fiscal Year 2017, 63 cities did not have enough money to pay all of their bills, the report states, meaning debts outweigh revenue. In order to appear to balance budgets, TIA notes, elected officials “have not included the true costs of the government in their budget calculations and have pushed costs onto future taxpayers.”

Hartford City News Times

To say that more simply: your children have been sold into debt slavery and owned by the governments; both local and federal. The government is officially punishing the unborn for their inability to handle money.

What a time to be alive…

One major problem area TIA identifies is that city leaders are lying. (What a shock! A lying politician…) These political masters have acquired massive debts despite the balanced budget requirements imposed on them by scamming the public and enslaving them.

“Unfortunately, some elected officials have used portions of the money that is owed to pension funds to keep taxes low and pay for politically popular programs,” TIA states.

“This is like charging earned benefits to a credit card without having the money to pay off the debt. Instead of funding promised benefits now, they have been charged to future taxpayers. Shifting the payment of employee benefits to future taxpayers allows the budget to appear balanced, while municipal debt is increasing.”

It’s only a matter of time until this system built on debt and theft comes crashing to the ground.

How prepared are you?

via zerohedge

32 COMMENTS

  1. But yet these cities continue to fund free health and food stamps to illegal aliens but can not pay their retired city workers. And you people still vote for the democrats. Just plain stupid.

  2. Need to make all the so called rulers accountable. Go back to when the pension started and remove all the funds from anyone who voted not to fund it completely. Take the family funds of all generation. It’s time for that family to pay their fair share

  3. Strange how you do not sat a word about the T Rump deficit.
    He’s frantically trying to peddle $1T of government debt certificates around the world with no takers so far.
    Yes, the debt situation of our cities in and issue, but the T Rump deficit is a forest fire that is growing daily.

    • Did your parents have any children that lived ? Short bus riders like you are the cause of these problems !Obama increased the National Debt in his 8 years more than all National Debt in the history of the United States ! Come over here and drink some more kool aid !

    • Where was your “sage wisdom” when BHO more than doubled our national debt between 2009 and 2017, with no measurable economic recovery other than that financial boondoggle for the auto workers unions, and big banks (AKA Democrat donors)?

    • The fastest growing debt of all times in this country took place when Obama was in office so why don’t you write a book about that? President Trump is dealing with the fallout from Obama. Typical left wing liar.

  4. Vast majority are democrat mismanaged. And, most of them harbor SANCTUARies FOR ILLEGALS.

    All the people that drain the economy. Makes a lot of sense doesn’t it.

    They beat down the honest, legal Americans.

  5. It’s a shame “theolddog” is dumber than a pet rock. Trump did not creat the debt and what he is doing will turn everything around if the dumb democratic will help him. The debt was created mostly by Obama and the other DemonRats in Washington.

  6. and I bet they are run by democrats in democrat states lets turn the whole country socialist democrat, then we can all eat rats

  7. The major cities all run by Democrats. It figures. Their policies of tax and spend don’t work. If I’d run my household like this, I’d be homeless in a month.

    • Point well taken, let us not forget BO wasted 8 trillion doing absolutely nothing, now that has to be made up for, it’s a mess! All politicians have to learn how to “cut spending” and spend $ on necessary items not votes!

  8. All te corrupt pols that “run” these cities think the same way-“I will be outta here when it collapses”-just keep borrowing!

  9. Let’s be honest, all or most of the dead beat cities are run by dem wits. The retirement system in Phoenix and AZ had the same problem and honestly it was Phoenix dem wits and dem wits in AZ’s government who were most responsible. The retirees already on it got grandfathered in which likely was not that great for anyone’s budget but as least a cap was put on the ones still serving, they got COLA. Brought it in line with a bill that ran with COLA like all of these grand retirements should have been funded. Like SS is funded always and now.

    i am amazed that the people elected are so poorly informed about facts around finance and budgets. Dem wits in particular and rinos do not have a clue about the word BUDGET and secondly they have no concept of only spend what you are bringing in. Most people live like that, why should government on any level run differently?

    I guess the reason government in general and especially dem wit and rino run entities figure they will just tax the workers all the more. They assume the largess of the workers is limitless! Reminds me a whole lot of Bozo and the now person of Cortez. Not a clue, just give the hordes of illegals and welfare freeloaders whatever they want. Sound like Venezuela in the beginning but when money runs out it morphs to communism and dictatorship.

    And that fallacy about the rich paying? Just that, a pipe dream and the dem wits, rinos, and the rest of the government know it is not real. The rich will just move with their dinero to other places of countries that view them as pals. The really rich are the NWO everyone and the workers are the only ones who really pay taxes with very few exceptions.

    And I do know this because I understand taxes, finance, and big business pretty well. Made my living as a CPA before retirement. And I might add that I am not against the rich, god bless them. Most worked hard for their money and they are not about to let idiots like Cortez strip them of their money for the welfare sucking hordes of the illegals and those too lazy to get a job.

    I think we all know the welfare for life crowd with generations on welfare. No one, and I mean no one challenges those lazy freeloaders. How come? Cause they will get in your face, attack you, harrass you? Well, guess they are gonna do that anyway thanks to the likes of Big Mouth.

    • I really don’t think that the Democrats are ill-informed. I think what they are doing is absolutely intentional. They are buying political power today from an ignorant electorate who wants something for nothing and passing the debt burden to those not yet in office to deal with. It is criminal, but it has become routine. It’s also why I will never ever vote for a stinking Democrat. In recent years they have become a political party dedicated to the destruction of the greatest nation in world history.

  10. Since Nancy Pelosi and Chuckie fight us to infiltrate our country with illegal, lazy, freeloading immigrants, I do believe the DEMS should pass a “bill” that Nancy and Chuckie should embrace them as their “foster” families and individuals, and fund their every need and existence for life. in fairness to Nancy and Chuckie, let’s just say those who crossed (invaded) our borders in 2018!! They may want to reduce expenses by placing some in their homes

  11. This article does a pretty good job of outlining the magnitude of the problem, but the problem itself and its cause have been around for a very long time. The major cause of this debt is unfunded pensions and healthcare for public workers as stated in the article. Why is that? Because the politicians placate unreasonable union demands by offering taxpayer money in exchange for union support. It is not their own money they are spending. Public employee unions should be outlawed. There is an inherent conflict of interest between them and the government. Note that almost all of these cities are governed by liberals, and those liberals have mastered the con of offering other people’s money to buy votes. Look at the current crop of Democratic presidential candidates: Free healthcare, free college, etc.

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