Thursday, November 4, 2010
There is no Deficit
There are multiple deficits. Addressing the Federal deficit is not nearly enough. Overall federal debt, state deficits and debt and unfunded public pension liabilities must be addressed in any clarifying discussion of public fiscal problems. Pension liability accounting must also be addressed. How can a discount rate be justified in calculating total liabilities? If New Jersey uses 8% (or thereabouts) as a discount rate, on what basis does it do that - especially if people are living longer?
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