Saturday, December 12, 2009

The Plundering of The U.S.: Public Servants Making Over $100k Jump to 19%: US Dollar Devaluation Coming

Re The Plundering of Ontario, where over 50,000 provincial employees make over $100,000, USA Today reports that for federal employees in the U.S the same issue is happening.

"Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession's first 18 months — and that's before overtime pay and bonuses are counted."

On top of that there will be pensions, befenits, and how knows what else. Guess who is paying for all this? We are, our children will be, and their children will be.

Defense Department civilian employees earning $150,000 or more jumped from 1,868 in December 07 to 10,100 in June 09. The Transportation Department had only one person earning a salary of $170,000 back then, now ir has 1,690 employees had salaries above $170,000! Unvelievable.

At the same time, (Bloomberg) this week treasuries dropped, with the gap in yields between 2- and 30-year securities reaching the widest margin since 1980, after a $13 billion offering of 30- year bonds drew lower-than-forecast demand. “The market is continuing to worry about the massive amount of Treasury issuance that’s going to hit the market well into next year,” said Ian Lyngen, senior government bond strategist at CRT Capital Group LLC in Stamford, Connecticut".

The current debts will never be repaid. Devaluation is the only way out (inflation or straight currency manipulations). Act accordingly.

Says the report:

"The growth in six-figure salaries has pushed the average federal worker's pay to $71,206, compared with $40,331 in the private sector.
Key reasons for the boom in six-figure salaries:
• Pay hikes. Then-president Bush recommended — and Congress approved — across-the-board raises of 3% in January 2008 and 3.9% in January 2009. President Obama has recommended 2% pay raises in January 2010, the smallest since 1975. Most federal workers also get longevity pay hikes — called steps — that average 1.5% per year.
•New pay system. Congress created a new National Security Pay Scale for the Defense Department to reward merit, in addition to the across-the-board increases. The merit raises, which started in January 2008, were larger than expected and rewarded high-ranking employees. In October, Congress voted to end the new pay scale by 2012.
• Paycaps eased. Many top civil servants are prohibited from making more than an agency's leader. But if Congress lifts the boss' salary, others get raises, too. When the Federal Aviation Administration chief's salary rose, nearly 1,700 employees' had their salaries lifted above $170,000, too".

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