Friday, January 21, 2011
- Public Sector Unions About To Be Sodomized
I can't believe I'm shoveling snow again - what is this Minnesota? I use one of those power snow throwers which makes it easier than doing it by hand - but it's still plenty of physical work.
Ive had to do it so often lately that I'm halfway tempted to just sit in the house and wait for the town to plow that 6 foot high pile of ice at the end of my driveway before I even get started. I'd swear they do it for spite. I've had to undo their handiwork a minimum of twice per storm so far this year. I swear if I'm out there when they plow in my perfectly clear driveway again I'll be tempted to violence. Damned illiterate civil servants.
I guess this will have to be my vengeance though. Those bastards are going to lose their pensions. How do I know this? Think of it this way.
Right now the law says that States have no legal way to escape their obligations, but their future obligations cannot be paid. We are at a Keynesian endpoint where there is no more 'external source' of capital with which to make up their shortfall caused by top down inefficiency. So, as I've been saying for ages, the law is going to change. Now we have an idea of how, and even the NYTimes is trying to find a way to break the bad news.
So when it's settled, we'll have two groups of people who have unsecured claims on future government revenue. The first will be the union pensions, and the next will be the investors in the municipal bond market. The first will have no choice but to deal with the government, and the second - lots of choices. In fact, unless we're going to abolish the free flow of capital, the bond holders will be in a much better negotiating position going forward, simply by virtue of being able to walk away.
In the end, the pols will be forced to choose between much higher borrowing costs, or placating the public sector unions. They will see that as a choice between saving the unions and saving themselves. And what that tells me is that the civil service unions and their overly generous pensions are about to take a major, un-lubricated @$$ f^cking. (I can't even type that without smiling.) So while I'm out there watching the dim witted public servants plowing in the end of my driveway for the 10th time in 2 weeks, at least I'll have that idea to keep me warm.
Leftists proclaim themselves the guardians of 'Fairness', but I believe the markets are the ultimate arbiter of 'justice'. And when the pols have no choice but to make accounts balance, all the self congratulatory motives in the world won't keep them from doing what they must. "You can't do that to us!" the unions will say. But short of forcing people to invest in Muni's, the unions will be the only people they CAN do it to.
Which means that short of my driveway being plowed in again, god is in his heaven - and all is right with the world.