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Posted: Aug 07 2009 By: Jim Sinclair Post Edited: August 7, 2009 at 8:02 pm

Filed under: In The News

“I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption in high places will follow, and the money-power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in a few hands and the Republic is destroyed.”
–Abraham Lincoln

Dear CIGAs,

Here is a great summation from my former partner and ace trader Yra Harris:

"Cash for Clunkers – a classic case of inter-temporal dislocation."

Jim Sinclair’s Commentary

And who exactly will the broke state turn to? The Federal Government who then will turn to the fading international bond market or plain old QE?

The dollar rally on fake statistics has NO legs.

Cities Turn to State for Pension Relief
Posted Thursday, August 6, 2009 ; 06:00 AM

CHARLESTON — City officials from around the state say their communities can no longer afford to cover the benefits of retired police officers and firefighters, so they are asking the state Legislature for help.

Specifically, they want state lawmakers to redirect a portion of state surcharges on insurance premiums to helping cities cover their retirement pension obligations. They also want to enroll new hires in new pension plans that help them save money.

If nothing changes, cities such as Huntington could have fewer police officers and firefighters on the streets as they are forced to cut back staffs because of increasing pension obligations. The city’s last six police and fire department retirees will likely draw $1.5 million each in pension benefits over the course of their retirements, even though each person made less than $900,000 during his or her career, according to Deputy Mayor Tom Bell said.

“What happened here is we just can’t afford to dedicate that amount of money” to pensions, Bell said.

Huntington is in the worst shape, but other cities around the state also are struggling to cover their pensions.

Collectively, city governments are facing $700 million in unfunded liability thanks to what officials say are the generous benefits paid out of the firefighters and police officers.

The West Virginia Municipal League, which represents the state’s cities, wants state lawmakers to meet in special session either in August or September to consider municipal pension reforms.

More…