Posted on 03/03/2024 7:55:04 AM PST by bitt
Social Security and Medicare are underfunded by $175 trillion. The nightmare arrives.
In 2014 I published my first book while I was in Hong Kong. This book focused on the insane policies of the Obama/Biden regime and offered solutions that were working overseas.
The biggest problem on the table was the massive amount of unfunded liabilities that were being created under the Biden regime. Below is what I wrote at that time (pp. 23-24).
Even more alarming than the US’s annual deficits or federal debt burden is the amount of its unfunded liabilities. Unfunded liabilities are financial promises made with no money held in reserve to support these promises. For-profit organizations (e.g., companies or corporations) or not-for profit organizations (e.g., charities) must report the amount of liabilities or promises they have made that are outstanding. For example, if you have promised your employees that they will receive a pension upon their retirement, then you must report this in your financial statements. In addition to reporting, a prudent company will set aside funds to pay for these promises when they become due. Companies may be legally prevented from taking money from the assets set aside for some of these obligations, and if a company or organization does not set aside adequate assets to support their liabilities, the organization could go bankrupt and face litigation as a result. Unfunded liabilities are a cause for concern in a company or corporation and a severe red light for anyone reviewing a company’s balance sheet to determine its financial solvency and business practices.
The US government does not have to abide by these reporting and reserving measures. The government does not have to provide in its basic set of financial statements the amount of its total liabilities, the bulk of which are currently unfunded. Also, it does not have to set aside assets to fund the obligations it has promised. As of the end of 2012, the actual liabilities of the US federal government— including Social Security, Medicare, and federal employees’ future retirement benefits—were estimated to exceed $86.8 trillion, or 550% of annual GDP. In addition, for the year ending December 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. This means that these programs are adding $7 trillion annually to the US debt load but this $7 trillion is not counted in the amount of growing US debt or accounted for in its annual deficits. At the current rate, the US will have almost $100 trillion in financial debt and promises due at the end of 2014, but the public will only know about the small portion of this amount, the already massive $17 trillion in debt outstanding.
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All Ponzi schemes eventually go bust.
Obvious solution is to import millions and millions of illegals, then pay for their food and housing. Duh!
it comes down to a philosophical question - what is money?
There will never be a $175 trillion piggy bank - any future “services” will be paid for, only at the time they are used, by taking and diverting real resources from other parts of the economy.
We do the same thing today. We “pay for” government through diverting real resources from others in society, bringing those goods/services from other countries, or debt and printing money (debasement)
The US government is “underfunded” by more that $1 Trillion every year, but we find a way to squander money on immigrants and ukraine.
Well, between Jo Pedo’s Ukrainian war, millions of incoming,freeloading invaders demanding money, food, shelter and Huggy changes from American taxpayers and college loan deadbeats who mistook Pedo Joe for Jesus Christ and begged him for “forgiveness” and a free diploma if they wanted his vote it’s no wonder America is broke. Jumpin Joe Pedo is spending money like a drunken Caribbeaner pirate.
In simple physics, acceleration towards the speed of light requires ever greater energy to make the acceleration, such that mass must eventually convert to energy or never attain that speed.
In simple fiscal policy, the massive and accelerating "under funding" can eventually only be solved by abrogation of debt via some version of governmental collapse, or subjecting a populace to "perpetual bonds," which can never be repaid, but only "serviced." The latter is the "Road to Serfdom," and since serfdom was from a historical period of which we know much, serfs were held down by an elite -- an aristocracy. These seem the two scenarios approaching.
Today's politicians are engaged in political malpractice, and their sinecures and "rent" should be stopped.
"Kicking the can" is a kid game, but when adults play it and the can weighs far more than one is able to kick, simple physics instructs. And, as Herb Stein observed, "that which cannot continue, will stop." Yup.
Too much government spending and the need to keep business taxes low for the sake of business.
Canada has its welfare state with a national income tax, national sales tax, user fees so that corporate taxes are kept low at 15 percent.
The Liberal Party of Trudeau originally meant and still means Liberal on economics pro-business by keeping business taxation low.
This talk about SS and Medicare is obviously leading us to cutting spending there and not raising taxes that would hurt business.
Business has a big say in our politics in the “Conservative Movement” and their way is to avoid business having to pay taxes.
That’s why the constant talk about Social Security benefits being cut down the road because raising SS taxes is not acceptable.
Corporations do not pay taxes. Those are an expense passed on to the consumer. Accounting 101.
There are so many programs and "government" folks are being paid for doing nothing.
And, transfer all our money and arms to Ukraine, that it may be laundered and pressed, to be returned nice and tidy to the Biden crime family and many of our esteemed legislators.
Importing people who don’t pay into the system was obviously a mistake.
Give the 87,000 gun-toting IRS agents something to do besides make a small business owner find receipts for $75 or whatever.
This would let government be government and do what they already know how to do.
And its a Ponzi scheme I never signed up for personally. Someone else signed me up but somehow this contract is considered valid and I can’t get out of it, and never had the opportunity to.
This is why they keep pushing the clot shot on boomers 65 and older.
Almost everyone in DC is feeding at the 'help the seniors' trough... More like a 'take the seniors' and blame them trough.
I'm guessing more of our DC thugs and goons got bigger 'kickbacks' than Hunter and family ever dreamed of... Legal secret ways of lining their pockets.
Old people are being blamed for money spent that is in fact keeping DC area mansions large and abundant. If the press wasn't filled with stupid bimbos and silly pretentious 'men' they would look into this.
Regardless those are the facts on the ground.
When Obama was POTUS I watched the Fox News-Fox Business discussion about how great Canada was because it had a 15 percent corporate tax.
Fox Business liked it but didn’t tell the little folks about Canada’s national sales tax that helps to keep that corporate tax low.
People who push low corporate taxes like Fox News Fox Business also promoted the notion of a national sales tax I do recall those conversations in the past.
I have tried for hours at a time, many, many times, to trace the root of the Medicare corollary insurance funding scheme. Do you have a source?
bttt
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