Posted on 05/11/2009 10:32:49 AM PDT by SeekAndFind
Government obligations for Social Security and Medicare may soon exceed the combined net worth of every household and nonprofit organization in the country.
Prices dropped last year. But we still need to invest to protect ourselves from inflation. That's why our retirement-plan investing needs an inflation "tilt." You'll understand why in a few paragraphs.
How bad will future inflation be? I don't know. Neither does anyone else. It could be a normal inflation of 3% to 4% a year. It could also be a banana-republic 10% a month.
What we know is that all governments make promises they can't fulfill. Our government certainly has. Under both political parties, it has taken promise making to a high art. This is not hyperbole. The figures can be found in regularly published government reports.
Much worse than you probably think
The figures exist, but they are ignored. News reports regularly inform us of the growing federal deficit, projected at a stunning $1.75 trillion for fiscal 2009 and $1.17 trillion for 2010. But regularly reported, less visible government obligations have been growing much faster.
In the nearly five years from January 2003 to December 2007, the Medicare trustees reported that the unfunded liabilities of Social Security and Medicare grew by a stunning $10.4 trillion. The average annual growth topped $2 trillion.
That exceeds the expected formal deficit of $1.75 trillion this year.
In the 2008 trustees' report (.pdf file), the unfunded liabilities of Social Security and Medicare -- promises of future retirement and health care benefits -- total $42.9 trillion. In a few days, we should be able to read the 2009 report. It's a good bet that the unfunded liabilities will show an increase in the new report.
(Excerpt) Read more at articles.moneycentral.msn.com ...
Figures don’t lie, but liars figure.
“all governments make promises they can’t fulfill”
but some more than others.
(Government obligations are much worse than you probably think)
That’s really depressing as I figure Obama had already sold the souls of all my great-great grandchildren’s souls!
Ha ha ha ha ha ha ha.
Alan Greenspan & Ben Bernanke & Hank Paulson & L'il Timmy Geithner can just dial up the presses to "11" and print us some more $$$s and everything will be fine-n-dandy like it always is.
Relax. Chill out. Pass the tequila. Party on, dudes.
Last week’s rally was smoke and mirrors. If no one stops zero from plunging the nation into trillions of dollars in debt, it will take decades to recover. But hey, he’s cool and has high approval ratings so he can do whatever the hell he wants. When he falls, the MSM goes down with him.
If a politician found he had cannibals among his constituents, he would promise them missionaries for dinner.
— H L Mencken
The state feeds on the predation of production until production can no longer sustain the appetite of the State. Production declines to the point of subsistence as their is no incentive beyond this and when a crisis hits, the State has no means with which to survive.
I think a much better question to ask would be "Is America About To Go Broke On Purpose?"
Sure seems like there are people wanting it to with the decisions that are being made.
My vote? Bring back the Tenth Amendment and stop all federal spending outside the enumerated powers in the Constitution (other than moral obligations such as retirement for federal workers and social security for those who paid for that promise). That's the right answer.
Obama's answer? He'll continue to spend less responsibly than the worst drunken sailor in history, then leave it to our children to figure out what to do about the debt. At least China will get stuck with the tab when we default; they deserve it for enabling the massive spending by trusting Obama and Pelosi.
Quick! Everyone sign over your paychecks to help out. Oh, never mind.
When will they start telling not to even apply for Social Security?
Paging Rick Waggoner...
At least he tried to contain cost and turn things around.
GM was the warning shot for SSI, Medicare and Medicade, and no one wants to acknowledge that.
Social Security implosion 2010
http://bluelori.blogspot.com/2009/04/social-security-explosion-2010.html
Even the ignorant and stupid MSM informed Americans are about to figure it out.
It's been broke, it's just that public perception is finally beginning to wake up and realize it. When that realization hits critical mass, then is when we'll see the SHTF scenario come about. The only thing holding that back for the moment is blind trust.
bookmark
Is America going broke...NO, America is broke!
Some more figures commercial real estate KA BOOM
http://www2.standardandpoors.com/spf/pdf/media/CMBS_Quarterly_April_09.pdf
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