State pension funds have suffered huge losses and are going to suffer even bigger losses in the future as the depression deepens. What to do? Of course! Queue up for federal money. That's the answer everybody has nowadays (even pornographer Larry Flynt) to falling asset values and shrinking revenues. The trouble with this tidy solution is that the federal government is insolvent and has no money to "spread around" (as Mr. Obama said about wealth during the campaign). But, say some, aren't these state pension funds "guaranteed?" Well, what is a guarantee to pay worth when made by somebody without funds to disburse? How does one guarantee the future? You can't, obviously. So why did anybody buy into this "guaranteed" nonsense in the first place? Reasons like wishful thinking and playing make-believe come to mind. State pensioners will likely think of more when their monthly checks shrink or disappear altogether.
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