New Jersey government shuts down

SUBHEAD: Illinois and New Jersey state insolvencies are just the start... Kentucky is next and more are on the way.

By Tyler Durden on 1 July 2017 for Zero Hedge -
(http://www.zerohedge.com/news/2017-07-01/chris-christie-announces-new-jersey-government-shutdown-orders-state-emergency)


Image above: With the government shut down New Jersey closed all its public parks and beaches to the public this July 4th weekend. Here police (still operating) turn away people from Liberty State Park. From (http://www.app.com/story/news/politics/new-jersey/chris-christie/2017/07/02/gov-christie-get-h-off-beach/446242001/).

We've written quite a bit over the past couple of months about the pending financial crisis in Illinois which will inevitability result in the state's debt being downgraded to "junk" at some point in the near future (See article below).

Chris Christie announces New Jersey government shutdown and orders a state Of emergency.

Illinois, Maine, Connecticut: the end of the old fiscal year and the failure of numerous states to enter the new one with a budget, means that some of America's most populous states have seen their local governments grind to a halt overnight until some spending agreement is reached. Now we can also add New Jersey to this list.

On Saturday morning, New Jersey Gov. Chris Christie declared a state of emergency in the state, and announced a partial state government shutdown as New Jersey become the latest state to enter the new fiscal year without an approved budget after the Republican governor and the Democrat-led Legislature failed to reach an agreement by the deadline at midnight Friday, CBS New York reports.

In a news conference Saturday morning, Christie blamed Democratic State Assembly Speaker Vincent Prieto for causing the shutdown.

And, just like Illinois and Connecticut, Christie and the Democrat-led Legislature are returning to work in hopes of resolving the state's first government shutdown since 2006 and the first under Christie, before NJ is downgraded further by the rating agencies.

"If there's not a resolution to this today, everyone will be back tomorrow," Christie said, calling the shutdown "embarrassing and pointless." He also repeatedly referred to the government closure as "the speaker's shutdown." Christie later announced that he would address the full legislature later at the statehouse on Saturday.

Prieto remained steadfast in his opposition, reiterating that he won't consider the plan as part of the budget process but would consider it once a budget is signed. Referring to the shutdown as "Gov. Christie's Hostage Crisis Day One," Prieto said he has made compromises that led to the budget now before the Legislature.

"I am also ready to consider reasonable alternatives that protect ratepayers, but others must come to the table ready to be equally reasonable," Prieto said. "Gov. Christie and the legislators who won't vote 'yes' on the budget are responsible for this unacceptable shutdown. I compromised. I put up a budget bill for a vote. Others now must now do their part and fulfill their responsibilities."

Politics aside, the diplomaitc failure has immediate consequences for Jersey residents: Christie ordered nonessential services to close beginning Saturday. New Jerseyans were feeling the impact as the shutdown took effect, shuttering state parks and disrupting ferry service to Liberty and Ellis islands. Among those affected were a group of Cub Scouts forced to leave a state park campsite and people trying to obtain or renew documents from the state motor vehicle commission, among the agencies closed by the shutdown.

As funds run out elsewhere, it will only get worse. Police were turning away vehicles and bicyclists at Island Beach state park in Ocean County.

A sign posted at the park entrance featured a photo of Prieto and the phone number of his district office in Secaucus, along with the caption: "This facility is CLOSED because of this man."

When asked about the sign, Christie spokesman Jeremy Rosen said the governor wanted to make sure people knew why the site was shuttered.  "Speaker Prieto singlehandedly closed state government," Rosen said, adding that the governor wanted to make sure families "knew that the facilities were closed and who is responsible."

Not all things will be affected: remaining open under the shutdown will be New Jersey Transit, state prisons, the state police, state hospitals and treatment centers as well as casinos, race tracks and the lottery.

A major point of disagreement is the ongoing stalemate between Christie and lawmakers over whether to include legislation affecting the state's largest health insurer into the state budget.

Christie and Senate President Steve Sweeney agree on legislation to make over Horizon Blue Cross Blue Shield, including allowing the state insurance commissioner to determine a range for the company's surplus that if exceeded must be put to use benefiting the public and policyholders.

But Prieto opposes the plan, saying that the legislation could lead to rate hikes on the insurer's 3.8 million subscribers and that the legislation is separate from the budget. Prieto has said he will leave open a vote on the $34.7 billion budget that remains deadlocked 26-25, with 24 abstentions, until those 24 abstentions change their mind.

Democratic Assemblyman Vince Mazzeo, of Northfield, was among those abstaining. He reasoned that if the governor did not get the Horizon bill, then nearly $150 million in school funding -- $9.6 million of which would go to his district -- would be line-item vetoed out of the budget.

And indeed, Christie said Friday during a news conference that he would slash the Democratic spending priorities if he did not get the Horizon bill as part of a package deal on the budget.  "You want me to wave a magic wand to get a budget?" Christie said. "I can't get a budget to my desk.

Only the Senate and Assembly can get the budget to my desk."

But where things may get nasty quick, is that Christie said public workers should not expect any back pay. "Yeah, don't count on it." Christie said of furlough pay. "That was Jon 'I'll Fight For a Good Contract For You' Corzine. I ain't him."

Meanwhile, the fingerpointing has begun, including Democrats pointing at other Democrats.

"It seems like he's just being stubborn," Mazzeo said of Prieto. "With all due respect to the speaker, then there should be some type of negotiations." But Prieto said it's lawmakers - fellow Democrats - like Mazzeo who are to blame for the shutdown. He said he is willing to discuss the Horizon legislation but after the budget is resolved.

Christie has balked at the proposal because he says lawmakers plan to leave town to campaign for re-election and he will be a lame duck.

According to CBS, all 120 lawmakers face voters this year. Finally, putting the sheer chaos of it all in context, Christie who is term-limited and is expected to be out of office by January, has his family staying for the holiday weekend in a state-owned house at Island Beach State Park. The park is closed because of the shutdown

---

Jersey and Illinois are not alone
SUBHEAD: When the ponzi dominoes start to fall, Bloomberg has provided this helpful map to illustrate who will succumb first...
By Tyler Durden on 1 July 2017 for Zero Hedge -
(http://www.zerohedge.com/news/2017-07-01/americas-pension-bomb-illinois-just-start)


Image above: Diagramatic map of USA illustrating percentage of funding for state pension obligations. From original article by Bloomberg News.

Unfortunately, the state of Illinois doesn't have a monopoly on ignorant politicians...they're everywhere. And, since the end of World War II, those ignorant politicians have been promising American Baby Boomers more and more entitlements while never collecting nearly enough money to cover them all...it's all been a massive state-sponsored scam.

As we've noted frequently before, some of the largest of the many entitlement 'scams' in this country are America's public pension funds. Up until now, these public pension have been covered by stealing money set aside for future generations to cover current claims...it's a ponzi scheme of epic proportions...$5-$8 trillion to be exact.

Of course, the problem with ponzi schemes is that eventually you get to the point where the ponzi is so large that you can't possibly steal enough money from new entrants to cover redemptions from those trying to exit...and, with a tidal wave of baby boomers about to pass into their retirement years, we suspect that America's epic ponzi is on the verge of being exposed for the world to see.

And when the ponzi dominoes start to fall, Bloomberg has provided this helpful map to illustrate who will succumb first...

Of course, if you live in a state like South Dakota, you may take some solace from the fact that your public pension is fully funded...don't.

Once the dominoes start to fall, and they will, those "ignorant politicians" we mentioned above will think they're doing the right thing when they attempt to "socialize the issue" with federal bailouts and tax hikes. Unfortunately, this is one crisis that will be too large for even American taxpayers to bailout.

.

Taking 'Retire' out of Retirement

SUBHEAD: Boomers feel optimistic about their future, and what they've accomplished. Some 80 percent report they are happy. By Jennifer Ludden on 1 January 2011 for NPR News - (http://www.npr.org/2011/01/01/132490242/boomers-take-the-retire-out-of-retirement) Image above: Retired couple stroll the beach in Florida. From (http://www.theepochtimes.com/n2/content/view/37576). It may be hard to believe, but the generation that transformed America as it came of age in the 1960s is now entering its senior years. "There are 7,000 boomers a day who will be turning 65 in 2011, which is a significant birthday for sure," says Steve Cone, executive vice president of AARP. Sixty-five used to be the age when Americans stopped working, kicked back and embarked on serious leisure to make up for all those decades of the daily grind. But just like with every other stage of life they've gone through, baby boomers are expected to transform how we think about "retirement." Leading the way will be couples like Stephanie and Stan Zirkin. She will turn 65 on May 14; he's already 65, not officially a boomer, but, as he puts it, "close enough." The Zirkins live in a cozy rowhouse in the Washington, D.C., suburb of Greenbelt, Md. Since their daughter split from her husband, Stephanie has stepped in as a main caregiver for her 6-year-old grandson, Stephen. "To be perfectly frank," she says, "by the time Stephen came along, I was kind of tired out." When her daughter is working, Stephanie picks up Stephen at the bus stop after school, supervises homework and sometimes feeds him dinner. "I always wanted to have a grandchild that I could take care of on a daily basis," she says. "I just hadn't pictured it happening that far along." Boomers may have bolted for the door at 18 and been off their parents' payroll after college, but their offspring are taking longer to reach traditional milestones of adulthood. Marriage and children come later. Certainly with the bad economy, some are taking longer to establish careers. Growing numbers of 20-somethings have been moving back in with their boomer parents after college, a loving form of financial subsidy. When the Zirkins' daughter separated from her husband, Stan found another way to help out. "I dipped into my savings and bought her a condominium, which is a hundred yards from here," he says. "You know, I was feeling very secure when I ended my mortgage a few years ago, but now I have another one!" Working Longer Stan is a branch chief at the National Labor Relations Board, commuting via car and Metro to downtown Washington each day. He says he loves his work, and despite reaching traditional retirement age, he isn't about to give it up. "I've spent my entire career doing good for people who might otherwise be powerless," he says. "That's a feeling I can't imagine being duplicated anyplace else." Stan was eligible for retirement a decade ago. When friends ask if he's considering it, Stephanie has a ready answer: "Not till they pry the [subway] farecard from his cold, dead fingers!" she says, laughing. That, too, is typical. Boomers, more educated than their parents, may derive more of their identity through work. In an AARP poll of people hitting 65 this year, Cone says, 40 percent have no intention of retiring. "The 40 percent is a much larger group than any generation before the boomers," he says. "But the other factor we see in the poll is that a lot of people feel they have to keep working." In fact, when AARP asked what the best 65th birthday gift would be, the top answer was "financial security." The recent recession derailed retirement plans for many. But Alicia Munnell, of the Center for Retirement Research at Boston College, says the problem goes beyond that. "We are having a contraction in all aspects of the retirement income system," she says, "so boomers are going to face a much tougher time than their parents faced." Living Longer A 2009 study by the center found that 51 percent of working households today will be unable to maintain their standard of living once they retire. The reasons are many. Munnell says because of the rising retirement age and the tax structure, Social Security is replacing less and less of a beneficiary's earnings. Traditional pensions are disappearing, replaced by riskier 401(k)s. Then there's the exploding cost of health care and the shrinking value of homes. There's also the fact, Munnell says, that Americans simply do not save enough. On top of all this, everyone's living much longer. "What we are trying to do is have people save for a 40-year work life for 20 years in retirement," Munnell says. "The arithmetic doesn't work out if you think about it. People just don't get enough income during that period." In fact, for those who retire early, it's entirely possible today to spend more years in retirement than you did in your job. Munnell believes those who can should work longer. She'd also like to see another government-sponsored program to encourage retirement savings. Longevity is certainly an issue for Stephanie and Stan Zirkin; each has a parent in his 90s. "My father is 97," says Stephanie. "He lives alone. He's still got all his marbles, maybe even acquired another few. He's tough." The Zirkins say their parents are still financially independent. And, unlike many, they feel they have saved well for retirement. Stephanie believes their sense of thrift may speak more to their Depression-era parents than the rest of her generation. Still, looking after aging parents on one end and struggling children on the other is probably no one's retirement dream. And yet, Cone says, the AARP survey shows an extraordinary -- and characteristic -- resilience. "Boomers feel very optimistic about a) their future, and b) what they've accomplished," he says. Some 80 percent reported that they are happy where they are in life. Retirement Alternatives Stan says he's followed with interest some of his contemporaries who've already retired. He's found no one moving to Florida to sit by a pool. "One of the guys decided he majored in the wrong subject in college so he's back in college," Stan says. "He's taking anthropology, I think. That's his new love, and he says he intends to stay until he gets another degree, just for the heck of it. "Another one, he always wanted to work with his hands, and so he used some of his retirement money to purchase rundown houses, and he's renovating them himself. So, they are not retiring. They are simply going to a different stage of their life." Stephanie says this is fine by her; no need to have Stan lounging around the house all day. And really, she's busy enough caring for her grandson. So what is she looking forward to in coming decades? "Ooh," she smiles, "great-grandchildren!" .