The Mises Institute for economic study released a report on government pension plans and noted several glaring issues with respect to governance and financial strength. The reported observed aggregate pension debt levels will exceed 1.7 trillion dollars next year. It went on to note that the 3 primary reasons for troubled pension plans included unrealistic accounting or assuming a 7-8% average return when the reality is closer to 4%, or less, PERS managed just .6% last year as an example. Politicians making promises that can’t be kept with respect to pension payouts while kicking the can down the road to future generations. Lastly the official avoidance of reality using the infamous extend and pretend model, a combination of the first two reasons. Looking at the bigger picture and the whole extend and pretend philosophy-if you can call it that. Is what brought us to this predicament in the first place, drowning in debts we can’t service, a lack of earned income and weak end user demand. What we need is a new economic paradigm not more and endless debt.