News Story of the Day: it seems the state-run pension systems are going to be in for some turbulent times over the coming years.
Last year, state-run pension systems across the United States were underfunded by $1.2 trillion, and the experts are warning that the funding gap could widen over the next several years.
According to Moody’s Investors Service, the state pension funding gap could top $1.7 trillion when the next round of state audits happen. This is because the investment returns have been far lower than previously expected. Of course, this has been widely known and regularly reported on (SEE: $1.9 trillion state, local public pension shortfall ‘storm cloud’ expected to worsen).
Chart of the Day: a Brexit collapse? What Brexit collapse? When millions of Britons voted to exit the European Union (EU), everyone claimed that it would be the end of the United Kingdom and that the whole world would obliterate. That hasn’t been the case, as this chart from Bloomberg notes:
Illustration of the Day: do you want to know what the miracles of socialism are? Well, this meme outlines it for you:
Quote of the Day: Henry Hazlitt was one of the greatest 20th century thinkers. His world-renowned book, “Economics in One Lesson,” will stand the test of time and be read 50 years from now. Here is what Hazlitt wrote when he explained the real cause of inflation:
“Let us see what happens under inflation, and why it happens. When the supply of money is increased, people have more money to offer for goods. If the supply of goods does not increase — or does not increase as much as the supply of money — then the prices of goods will go up. Each individual dollar becomes less valuable because there are more dollars. Therefore more of them will be offered against, say, a pair of shoes or a hundred bushels of wheat than before. A “price” is an exchange ratio between a dollar and a unit of goods. When people have more dollars, they value each dollar less. Goods then rise in price, not because goods are scarcer than before, but because dollars are more abundant.”
Video of the Day: NBC has been caught doctoring recent footage of Hillary Clinton. The television news network altered a video that revealed further problems with her eyes, which some suggest is a symptom of Parkinson’s Disease. Here is the video explaining everything that happened:
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