MJP Posted October 22, 2014 Share Posted October 22, 2014 What's everyone's take on demographics, longevity and pensions in all this? If there is long term decline, is it down to these factors? Link to comment Share on other sites More sharing options...
TheCruncher Posted October 22, 2014 Share Posted October 22, 2014 What's everyone's take on demographics, longevity and pensions in all this? If there is long term decline, is it down to these factors? All I can say is, I hope you got your pension already, because if you're still several years away from it, it may never arrive as well. Link to comment Share on other sites More sharing options...
thailiketoo Posted October 22, 2014 Share Posted October 22, 2014 Hello!?! Oil prices down to 82 a barrel and down 10 + % for the last 30 days and 16 % for the year. Nasdaq back up to 4435 today. Up 5% in last 5 days and up almost 13% for the year. Dow up to 16,633 today. Up 3.04% for last 5 days and up 7.5 % for the year. S&P up to 1,947 today. Up 4.57% for last 5 days and up 11 % for the year. Lol, you must be in some parallel universe based on you economic data interpretations. BTW, the Chinese got their but whipped in CMOs and buying up real estate in the US during the mid 90s as they were desperate to get their money out of China. Please get them out of our real estate market as they just artificially drive prices up for those of us here. Thanks God they are broke and pulling back and better they lose than us in the 2008 collapse. http://www.youtube.com/watch?v=yAlENsvnWhk Link to comment Share on other sites More sharing options...
thailiketoo Posted October 22, 2014 Share Posted October 22, 2014 What's everyone's take on demographics, longevity and pensions in all this? If there is long term decline, is it down to these factors? All I can say is, I hope you got your pension already, because if you're still several years away from it, it may never arrive as well. The nation’s nearly 64 million Social Security recipients will get a 1.7% cost of living increase for 2015, while the maximum Social Security tax, which is linked to a different measure, will go up by just 1.3%, the government announced today. The 1.7% boost means the average retired worker will see a $22 increase to $1,328 a month and the average senior couple will get a $36 boost to $2,176, the Social Security Administration said. The maximum monthly Social Security check for a single baby boomer claiming benefits in 2015 at the “full” retirement age of 66 will be $2,663, up from $2,642 in 2014. The increase will show up in regular Social Security checks in January and in payments made to 8 million beneficiaries of Supplemental Security Income (SSI) benefits on Dec. 31, 2014. http://www.forbes.com/sites/janetnovack/2014/10/22/social-security-benefits-rising-1-7-for-2015-top-tax-up-just-1-3/ Link to comment Share on other sites More sharing options...
TheCruncher Posted October 22, 2014 Share Posted October 22, 2014 What's everyone's take on demographics, longevity and pensions in all this? If there is long term decline, is it down to these factors? All I can say is, I hope you got your pension already, because if you're still several years away from it, it may never arrive as well. The nation’s nearly 64 million Social Security recipients will get a 1.7% cost of living increase for 2015, while the maximum Social Security tax, which is linked to a different measure, will go up by just 1.3%, the government announced today. The 1.7% boost means the average retired worker will see a $22 increase to $1,328 a month and the average senior couple will get a $36 boost to $2,176, the Social Security Administration said. The maximum monthly Social Security check for a single baby boomer claiming benefits in 2015 at the “full” retirement age of 66 will be $2,663, up from $2,642 in 2014. The increase will show up in regular Social Security checks in January and in payments made to 8 million beneficiaries of Supplemental Security Income (SSI) benefits on Dec. 31, 2014. http://www.forbes.com/sites/janetnovack/2014/10/22/social-security-benefits-rising-1-7-for-2015-top-tax-up-just-1-3/ Do you understand the difference between several years and next year, and the difference between promises and facts ? Link to comment Share on other sites More sharing options...
thailiketoo Posted October 22, 2014 Share Posted October 22, 2014 What's everyone's take on demographics, longevity and pensions in all this? If there is long term decline, is it down to these factors? All I can say is, I hope you got your pension already, because if you're still several years away from it, it may never arrive as well. The nation’s nearly 64 million Social Security recipients will get a 1.7% cost of living increase for 2015, while the maximum Social Security tax, which is linked to a different measure, will go up by just 1.3%, the government announced today. The 1.7% boost means the average retired worker will see a $22 increase to $1,328 a month and the average senior couple will get a $36 boost to $2,176, the Social Security Administration said. The maximum monthly Social Security check for a single baby boomer claiming benefits in 2015 at the “full” retirement age of 66 will be $2,663, up from $2,642 in 2014. The increase will show up in regular Social Security checks in January and in payments made to 8 million beneficiaries of Supplemental Security Income (SSI) benefits on Dec. 31, 2014. http://www.forbes.com/sites/janetnovack/2014/10/22/social-security-benefits-rising-1-7-for-2015-top-tax-up-just-1-3/ Do you understand the difference between several years and next year, and the difference between promises and facts ? Yes. I post facts. You don't. Social security is completely funded. Link to comment Share on other sites More sharing options...
TheCruncher Posted October 22, 2014 Share Posted October 22, 2014 (edited) .Chicago Mayor Rahm Emanuel proposed a $8.9 billion election-year budget on Wednesday, keeping mum about looming pension challenges that could further damage the third-largest U.S. city's credit ratings and trigger payments associated with its debt. http://finance.yahoo.com/news/chicago-mayor-mum-looming-pension-205437159.html;_ylt=AwrSyCVI2kdU1nEA3.STmYlQ Judge's ruling would allow bankrupt California city of Stockton to cut public pension benefits http://finance.yahoo.com/news/judges-ruling-strikes-pension-funds-075634151.html;_ylt=AwrSyCVI2kdU1nEA6OSTmYlQ The UBS Global Asset Management US Pension Fund Fitness Tracker saw the funding ratio of the typical corporate US pension plan drop by approximately one percentage point to 89% in the third quarter of 2014. http://finance.yahoo.com/news/us-pension-fund-fitness-tracker-191500414.html;_ylt=AwrSyCSP20dU00EAWvqTmYlQ want more? Edited October 22, 2014 by TheCruncher Link to comment Share on other sites More sharing options...
thailiketoo Posted October 22, 2014 Share Posted October 22, 2014 .Chicago Mayor Rahm Emanuel proposed a $8.9 billion election-year budget on Wednesday, keeping mum about looming pension challenges that could further damage the third-largest U.S. city's credit ratings and trigger payments associated with its debt. http://finance.yahoo.com/news/chicago-mayor-mum-looming-pension-205437159.html;_ylt=AwrSyCVI2kdU1nEA3.STmYlQ Judge's ruling would allow bankrupt California city of Stockton to cut public pension benefits http://finance.yahoo.com/news/judges-ruling-strikes-pension-funds-075634151.html;_ylt=AwrSyCVI2kdU1nEA6OSTmYlQ The UBS Global Asset Management US Pension Fund Fitness Tracker saw the funding ratio of the typical corporate US pension plan drop by approximately one percentage point to 89% in the third quarter of 2014. http://finance.yahoo.com/news/us-pension-fund-fitness-tracker-191500414.html;_ylt=AwrSyCSP20dU00EAWvqTmYlQ want more? You have posted nothing about Social Security. You are trying to obfuscate the issue. I wrote, "Yes. I post facts. You don't. Social security is completely funded. " Link to comment Share on other sites More sharing options...
TheCruncher Posted October 22, 2014 Share Posted October 22, 2014 .Chicago Mayor Rahm Emanuel proposed a $8.9 billion election-year budget on Wednesday, keeping mum about looming pension challenges that could further damage the third-largest U.S. city's credit ratings and trigger payments associated with its debt. http://finance.yahoo.com/news/chicago-mayor-mum-looming-pension-205437159.html;_ylt=AwrSyCVI2kdU1nEA3.STmYlQ Judge's ruling would allow bankrupt California city of Stockton to cut public pension benefits http://finance.yahoo.com/news/judges-ruling-strikes-pension-funds-075634151.html;_ylt=AwrSyCVI2kdU1nEA6OSTmYlQ The UBS Global Asset Management US Pension Fund Fitness Tracker saw the funding ratio of the typical corporate US pension plan drop by approximately one percentage point to 89% in the third quarter of 2014. http://finance.yahoo.com/news/us-pension-fund-fitness-tracker-191500414.html;_ylt=AwrSyCSP20dU00EAWvqTmYlQ want more? You have posted nothing about Social Security. You are trying to obfuscate the issue. I wrote, "Yes. I post facts. You don't. Social security is completely funded. " MJP's post mentioned PENSIONS, on which I answered concerning PENSIONS, and after which you tried to distract the subject to social security and now you accuse me of derailing? Since this is the second time in an hour in this thread that you try to take it in to a pissing contest, may I ask if you are a troll by any chance? Don't bother to reply, we all know the answer. Link to comment Share on other sites More sharing options...
MJP Posted October 22, 2014 Share Posted October 22, 2014 Come now team, there's no need for strong words. Perhaps I shouldn't have mentioned pensions. But people keep telling me about an elephant in some room somewhere. Link to comment Share on other sites More sharing options...
thailiketoo Posted October 22, 2014 Share Posted October 22, 2014 Social Security in the USA is solvent and fully funded. Since old people vote it is likely to stay that way. Many problems in the USA will have to be dealt with before any of the politicians try and stop the old folks from getting pensions that they paid for. Various tin hat brigades at various times make up stories about problems with Social Security but they are all hogwash as has been proven over and over again every time another nutter attacks the SS system. 1 Link to comment Share on other sites More sharing options...
TheCruncher Posted October 22, 2014 Share Posted October 22, 2014 (edited) http://pgpf.org/Issues/Spending/2010/08/05/The-Financial-Condition-of-Social-Security http://seekingalpha.com/article/148551-employment-headwinds-may-mean-jobless-recovery Edited October 22, 2014 by TheCruncher 1 Link to comment Share on other sites More sharing options...
Loptr Posted October 22, 2014 Share Posted October 22, 2014 When I see an increase of "The USA is Doomed" articles, I start browsing the most beaten down (US) stocks and pick up some bargains Many are doing just that. Along with the likes of Warren Buffett. He's increasing his equity stake substantially. It wasn't so pretty Wednesday morning when the markets opened and the Dow dropped 460 pts in the first 30 minutes... All 3 indexes have broken their 200 day moving averages and are in bearish territory... The likelihood of a deeper correction warrants caution right now... Stock market corrections, although painful at the time, are actually a very healthy part of the whole mechanism, because there are always speculative excesses that develop, particularly during the long bull market. Ron Chernow America's future looks very bright. Do you consider it "healthy" that Central Banks are injecting $200,000,000,000 per quarter into the equities markets just to keep them from crashing? That's right, Central Banks around the world are now directly buying equities to prop up the markets and economy... http://www.bloomberg.com/news/2014-10-21/how-markets-need-200-billion-each-quarter-from-central-bankers.html http://financialsurvivalnetwork.com/2014/10/the-magic-number-is-revealed-it-costs-central-banks-200-billion-per-quarter-to-avoid-a-market-crash/ America's future lay in economic ruin, borders overrun and a lawless government.... Hell, we're already there... Link to comment Share on other sites More sharing options...
Rocking Robert Posted October 22, 2014 Share Posted October 22, 2014 You got to be joking me 1 Link to comment Share on other sites More sharing options...
NeverSure Posted October 22, 2014 Share Posted October 22, 2014 The OP is simply stating what many others have already written about...the US has run up a debt that can never be repaid...printing money like there is no tomorrow which will someday end badly... Americans and the world are being sold a multitude of lies concerning the US economy...unemployment...and the so-called recovery... Any one of many events now going on in the world could be the tipping point to send the US economy...stock market...and US dollar into a tail spin... This is not bashing...consider it a warning...prepare yourself...a day of reckoning is coming... Dream on. In the lastest side by side debt to GDP figures the World Bank had: The US was 93.8% The UK was 103.2% Japan was 196.5% LINK The US has the world's largest economy by far. LINK The US has the most usable land of any country, the most natural resources, is fast gaining on the world's largest oil producers and will pass them, and is leaps and bounds ahead of other countries in technology. Don't hold your breath. I think you will find the Brits up with the most advanced technology, along with Germany, they usually give it to the Yanks after. You couldn't make that post without a US designed computer, a US designed operating system, or the US invented internet. 1 Link to comment Share on other sites More sharing options...
Aswin Posted October 22, 2014 Share Posted October 22, 2014 I'm bullish on US stocks. Link to comment Share on other sites More sharing options...
NeverSure Posted October 22, 2014 Share Posted October 22, 2014 Social Security in the USA is solvent and fully funded. Since old people vote it is likely to stay that way. Many problems in the USA will have to be dealt with before any of the politicians try and stop the old folks from getting pensions that they paid for. Various tin hat brigades at various times make up stories about problems with Social Security but they are all hogwash as has been proven over and over again every time another nutter attacks the SS system. Starting with president Reagan, the government began to borrow the money from the SS system and now it is all gone. It is now just an IOU owed by the government. The payments have to come out of the federal budget. It is being paid for twice. First by the trusting people who put their money into that trust fund, and now by those who are still paying taxes. "In 1983, Congress amended the program to allow for the accumulation of money to pay for the soon-to-be-retiring baby boomers. Payroll taxes were also increased at that time. Due to higher tax withholding, surpluses quickly emerged and, as some would say, Congress proceeded to “raid” the trust fund. Since there is no actual money in the trust fund, only special bonds with a promise to repay, some describe it as a pile of worthless IOU’s. In essence, the relevant question is, “Are the special bonds actually worthless?” Put another way, “Will the government be willing, or able, to meet future obligations?” LINK Link to comment Share on other sites More sharing options...
NeverSure Posted October 22, 2014 Share Posted October 22, 2014 Many are doing just that. Along with the likes of Warren Buffett. He's increasing his equity stake substantially. It wasn't so pretty Wednesday morning when the markets opened and the Dow dropped 460 pts in the first 30 minutes... All 3 indexes have broken their 200 day moving averages and are in bearish territory... The likelihood of a deeper correction warrants caution right now... Stock market corrections, although painful at the time, are actually a very healthy part of the whole mechanism, because there are always speculative excesses that develop, particularly during the long bull market. Ron Chernow America's future looks very bright. Do you consider it "healthy" that Central Banks are injecting $200,000,000,000 per quarter into the equities markets just to keep them from crashing? That's right, Central Banks around the world are now directly buying equities to prop up the markets and economy... http://www.bloomberg.com/news/2014-10-21/how-markets-need-200-billion-each-quarter-from-central-bankers.html http://financialsurvivalnetwork.com/2014/10/the-magic-number-is-revealed-it-costs-central-banks-200-billion-per-quarter-to-avoid-a-market-crash/ America's future lay in economic ruin, borders overrun and a lawless government.... Hell, we're already there... Yeah, predictions and "facts" from doomsday nutters who want to sell you gold. American corporations are doing well. Check the PE ratios of the Dow or the S&P. Check the average dividend yield for either. If the US stock market takes a nice correction, it's time to buy. There's never been a time like this when so many people had the opportunity to make so much money. The internet, both hardware and software and all of the inventions and jobs simply didn't exist just a short while ago, but they have made many rich. The college kids who designed Google made themselves and a lot of people rich. Walmart, McDonalds, Burger King, KFC, 7-11, Starbucks and others have gone global pulling a lot of money into the US. Ebay, Amazon, Facebook, Google, Yahoo, PayPal and many others just roll in the money. Companies like AT&T and others got the jump on laying out fiber optic trunklines internationally and developing authoritative DNS and DHCP servers and they own and lease the WWW internationally. If the internet shut down in the US it would immediately shut down globally. I could go on, but suffice to say that many simply don't know what's going on in the USA. 1 Link to comment Share on other sites More sharing options...
lovetotravel Posted October 22, 2014 Share Posted October 22, 2014 The OP writes, "If a crisis were to hit the US market again, and it will, the Fed will be caught without any rescue tools. Some say the market could crash 50 per cent. Others, such as "The Death of Money" author James Rickards, argue that it could collapse by 70-80 per cent. When will it happen? Nobody knows for sure about the timing. What is certain is that the US is engaging in several battles all at once, each posing huge risks to global stability." He is right. Look at all of the indicators. Thai baht going through the roof in value along with the Aussie dollar and gold. The American stock market collapsing. Price of oil going sky high and all the Chines trying to get out of the American real estate market. The Thai Baht is not going through the roof. The market is not crashing. Oil is extremely low. I've not read anywhere the Chinese are trying to get out of the US RE market. Where do you read these things? The market is well priced right now. Perhaps even a bit of a bargain. If you invest, you know the market goes up and the market goes down. It's WAY up over the past 5 years. Unemployment is going down. The US is actually exporting oil now and Over the past 5 years the low for the THB was about 28.8, the high at about 33.2 5 years ago and it's at about 32.2 now. A relatively small trading range. Stay away from tin foil hat websites. The biggest threat to the US are Europe and China. If they crash, so will the US. China has lots of cash. The EU doesn't have a central bank to work out monetary policy like the US and China does. Link to comment Share on other sites More sharing options...
NeverSure Posted October 23, 2014 Share Posted October 23, 2014 The OP writes, "If a crisis were to hit the US market again, and it will, the Fed will be caught without any rescue tools. Some say the market could crash 50 per cent. Others, such as "The Death of Money" author James Rickards, argue that it could collapse by 70-80 per cent. When will it happen? Nobody knows for sure about the timing. What is certain is that the US is engaging in several battles all at once, each posing huge risks to global stability." He is right. Look at all of the indicators. Thai baht going through the roof in value along with the Aussie dollar and gold. The American stock market collapsing. Price of oil going sky high and all the Chines trying to get out of the American real estate market. The Thai Baht is not going through the roof. The market is not crashing. Oil is extremely low. I've not read anywhere the Chinese are trying to get out of the US RE market. Where do you read these things? The market is well priced right now. Perhaps even a bit of a bargain. If you invest, you know the market goes up and the market goes down. It's WAY up over the past 5 years. Unemployment is going down. The US is actually exporting oil now and Over the past 5 years the low for the THB was about 28.8, the high at about 33.2 5 years ago and it's at about 32.2 now. A relatively small trading range. Stay away from tin foil hat websites. The biggest threat to the US are Europe and China. If they crash, so will the US. China has lots of cash. The EU doesn't have a central bank to work out monetary policy like the US and China does. Agree with all except China having a lot of cash. China is deep in debt and is not transparent at all about its finances including its sinister shadow banking system. Its lenders are saddled with those ghost cities and other non-performing "assets" and it is teetering on the brink. It is communist and the government owns the means of production except in a very few allowed economic zones. It has a massive population to feed and care for but not the resources. It can't grow all of its own food or produce enough energy and that's a real drag on the system. I don't expect or ask anyone to agree with me, I just ask that people wait and see. 1 Link to comment Share on other sites More sharing options...
lovetotravel Posted October 23, 2014 Share Posted October 23, 2014 100% agreed. It's been reported on widely, this debt issue for China. Has been for years. Just hope they can keep it in check. I get market updates from a very good source and for some time they've been reporting the #1 issue for the US is external. Ebola is one of them also. Again, it's all speculation. Link to comment Share on other sites More sharing options...
mania Posted October 23, 2014 Share Posted October 23, 2014 (edited) Well yes China does own a lot of debt much of it belonging to the US https://www.treasury.gov/ticdata/Publish/mfh.txt As can be seen they have not been buying as much of it. Nor has Japan which is why the FED started buying their own IOU's with basically more of their own IOU's awhile back. That practice is supposedly stopping now... Edited October 23, 2014 by mania Link to comment Share on other sites More sharing options...
Daniel Boon Posted October 23, 2014 Share Posted October 23, 2014 (edited) Russia is a threat to the world? Funny. This boy Obama. So what's America? the term 'friendly fire' was coined after so many American soldiers were killed by their own and collateral damage; and now we learn that the USA dropped weapons into IS held positions and our resident (AKA Prime Minister Tony Abbott) is sending Australian troops in ... And what has this got to do with the looming financial crisis? Neither the USA (who charges us Australians to help them by sending us a bill for bombs we drop) or Australia can afford it ... unemployment is growing, wages are falling and the cost of living keeps going up along with the fortunes of the corporations who fund the politicians they let us vote for ... Edited October 23, 2014 by Daniel Boon Link to comment Share on other sites More sharing options...
TheCruncher Posted October 23, 2014 Share Posted October 23, 2014 Yeah, predictions and "facts" from doomsday nutters who want to sell you gold. American corporations are doing well. Check the PE ratios of the Dow or the S&P. Check the average dividend yield for either. If the US stock market takes a nice correction, it's time to buy. There's never been a time like this when so many people had the opportunity to make so much money. The internet, both hardware and software and all of the inventions and jobs simply didn't exist just a short while ago, but they have made many rich. The college kids who designed Google made themselves and a lot of people rich. Walmart, McDonalds, Burger King, KFC, 7-11, Starbucks and others have gone global pulling a lot of money into the US. Ebay, Amazon, Facebook, Google, Yahoo, PayPal and many others just roll in the money. Companies like AT&T and others got the jump on laying out fiber optic trunklines internationally and developing authoritative DNS and DHCP servers and they own and lease the WWW internationally. If the internet shut down in the US it would immediately shut down globally. I could go on, but suffice to say that many simply don't know what's going on in the USA. Amazon hasn't made a dime profit yet in it's entire history. Ebay is losing out fast to it's new Chinese competitor Alibaba, who just recently had his US IPO. Mcdonalds just published declining earnings. Keep looking at PE figures they are the reflection of the dream Americans are living, a dream that can turn in a nightmare soon. Some of the high PE companies that the US invented, Tyco - Worldcom - Enron - CIT Group - Lehman brothers - Genral Motors. Can you remind us where they are today ? Looking how bright your future looks. http://finance.yahoo.com/news/-golden-years-look-dark-as-lower-inflation-eats-into-social-security-175449879.html Golden Years look dark as lower inflation eats into Social Security Link to comment Share on other sites More sharing options...
thailiketoo Posted October 23, 2014 Share Posted October 23, 2014 It is a logical impossibility for Social Security to go bankrupt. We can voluntarily choose to suspend or eliminate the program, but it could never fail because it “ran out of money.” This belief is the result of a common error: conceptualizing Social Security from the micro (individual) rather than the macro (economy-wide) perspective. It’s not a pension fund into which you put your money when you are young and from which you draw when you are old. It’s an immediate transfer from workers today to retirees today. That’s what it has always been and that’s what it has to be–there is no other possible way for it to work.Incidentally, there appears to be every indication that productivity increases should be sufficient for the Baby Boomers to retire AND allow the rest of us enjoy even higher standards of living (assuming the compression of wages ends). That’s good news. In fact, it’s the only news that’s important.In closing, I’m not telling you whether you should be for or against Social Security, but the argument that it is going bankrupt is a non-starter. It is much ado about nothing.http://www.forbes.com/sites/johntharvey/2013/01/07/social-security-rerun/ 1 Link to comment Share on other sites More sharing options...
Asiantravel Posted October 23, 2014 Share Posted October 23, 2014 It is a logical impossibility for Social Security to go bankrupt. We can voluntarily choose to suspend or eliminate the program, but it could never fail because it “ran out of money.” This belief is the result of a common error: conceptualizing Social Security from the micro (individual) rather than the macro (economy-wide) perspective. It’s not a pension fund into which you put your money when you are young and from which you draw when you are old. It’s an immediate transfer from workers today to retirees today. That’s what it has always been and that’s what it has to be–there is no other possible way for it to work. Incidentally, there appears to be every indication that productivity increases should be sufficient for the Baby Boomers to retire AND allow the rest of us enjoy even higher standards of living (assuming the compression of wages ends). That’s good news. In fact, it’s the only news that’s important. In closing, I’m not telling you whether you should be for or against Social Security, but the argument that it is going bankrupt is a non-starter. It is much ado about nothing. http://www.forbes.com/sites/johntharvey/2013/01/07/social-security-rerun/ The bottom line is there are now too many people collecting benefits relative to workers paying taxes into the system. That will have to be addressed in some fashion going forward. How can America overcome this problem because the trend certainly doesn't look encouraging. With increasing use of robots and mechanisation? Link to comment Share on other sites More sharing options...
Asiantravel Posted October 23, 2014 Share Posted October 23, 2014 It wasn't so pretty Wednesday morning when the markets opened and the Dow dropped 460 pts in the first 30 minutes... All 3 indexes have broken their 200 day moving averages and are in bearish territory... The likelihood of a deeper correction warrants caution right now... Stock market corrections, although painful at the time, are actually a very healthy part of the whole mechanism, because there are always speculative excesses that develop, particularly during the long bull market. Ron Chernow America's future looks very bright. Do you consider it "healthy" that Central Banks are injecting $200,000,000,000 per quarter into the equities markets just to keep them from crashing? That's right, Central Banks around the world are now directly buying equities to prop up the markets and economy... http://www.bloomberg.com/news/2014-10-21/how-markets-need-200-billion-each-quarter-from-central-bankers.html http://financialsurvivalnetwork.com/2014/10/the-magic-number-is-revealed-it-costs-central-banks-200-billion-per-quarter-to-avoid-a-market-crash/ America's future lay in economic ruin, borders overrun and a lawless government.... Hell, we're already there... Yeah, predictions and "facts" from doomsday nutters who want to sell you gold. American corporations are doing well. Check the PE ratios of the Dow or the S&P. Check the average dividend yield for either. If the US stock market takes a nice correction, it's time to buy. There's never been a time like this when so many people had the opportunity to make so much money. The internet, both hardware and software and all of the inventions and jobs simply didn't exist just a short while ago, but they have made many rich. The college kids who designed Google made themselves and a lot of people rich. Walmart, McDonalds, Burger King, KFC, 7-11, Starbucks and others have gone global pulling a lot of money into the US. Ebay, Amazon, Facebook, Google, Yahoo, PayPal and many others just roll in the money. Companies like AT&T and others got the jump on laying out fiber optic trunklines internationally and developing authoritative DNS and DHCP servers and they own and lease the WWW internationally. If the internet shut down in the US it would immediately shut down globally. I could go on, but suffice to say that many simply don't know what's going on in the USA. " Yeah, predictions and "facts" from doomsday nutters who want to sell you gold." It's somewhat amusing that you talk about doomsday nutters when equally you would have to be a nutcase to believe USA can go on indefinitely relying on “ growth “ which is based purely on printing money keep the bubble inflated and without any sign that all that there is any kind of strategy to repay a debt which has almost now reached 18 trillion. http://www.usdebtclock.org/ 2 Link to comment Share on other sites More sharing options...
thailiketoo Posted October 23, 2014 Share Posted October 23, 2014 It is a logical impossibility for Social Security to go bankrupt. We can voluntarily choose to suspend or eliminate the program, but it could never fail because it “ran out of money.” This belief is the result of a common error: conceptualizing Social Security from the micro (individual) rather than the macro (economy-wide) perspective. It’s not a pension fund into which you put your money when you are young and from which you draw when you are old. It’s an immediate transfer from workers today to retirees today. That’s what it has always been and that’s what it has to be–there is no other possible way for it to work. Incidentally, there appears to be every indication that productivity increases should be sufficient for the Baby Boomers to retire AND allow the rest of us enjoy even higher standards of living (assuming the compression of wages ends). That’s good news. In fact, it’s the only news that’s important. In closing, I’m not telling you whether you should be for or against Social Security, but the argument that it is going bankrupt is a non-starter. It is much ado about nothing. http://www.forbes.com/sites/johntharvey/2013/01/07/social-security-rerun/ The bottom line is there are now too many people collecting benefits relative to workers paying taxes into the system. That will have to be addressed in some fashion going forward. How can America overcome this problem because the trend certainly doesn't look encouraging. With increasing use of robots and mechanisation? Any shortfall can always be addressed in a very straightforward and supremely logical fashion: raise taxes or lower benefits (and it is exceedingly like that even if this occurs, we aren’t talking about anything drastic). It bears emphasizing, however, that such changes would still be a function of productivity and have absolutely, positively nothing to do with how much money we have or haven’t saved up. Funding, finances, money, taxes, etc. are part of the coordination mechanism, not the feasibility. http://www.forbes.com/sites/johntharvey/2013/01/07/social-security-rerun/ Link to comment Share on other sites More sharing options...
thailiketoo Posted October 23, 2014 Share Posted October 23, 2014 " Yeah, predictions and "facts" from doomsday nutters who want to sell you gold." It's somewhat amusing that you talk about doomsday nutters when equally you would have to be a nutcase to believe USA can go on indefinitely relying on “ growth “ which is based purely on printing money keep the bubble inflated and without any sign that all that there is any kind of strategy to repay a debt which has almost now reached 18 trillion. http://www.usdebtclock.org/ Who are the major holders of US debt outside of the country? Who are these nutcases as of Aug 2014? China, Mainland Japan Belgium Carib Bkg Ctrs 4/ Oil Exporters 3 Brazil Taiwan United Kingdom Hong Kong Luxembourg Russia Ireland Singapore https://www.treasury.gov/ticdata/Publish/mfh.txt Link to comment Share on other sites More sharing options...
Daniel Boon Posted October 23, 2014 Share Posted October 23, 2014 It is a logical impossibility for Social Security to go bankrupt. We can voluntarily choose to suspend or eliminate the program, but it could never fail because it “ran out of money.” This belief is the result of a common error: conceptualizing Social Security from the micro (individual) rather than the macro (economy-wide) perspective. It’s not a pension fund into which you put your money when you are young and from which you draw when you are old. I.t’s an immediate transfer from workers today to retirees todayThat’s what it has always been and that’s what it has to be–there is no other possible way for it to work. Incidentally, there appears to be every indication that productivity increases should be sufficient for the Baby Boomers to retire AND allow the rest of us enjoy even higher standards of living (assuming the compression of wages ends). That’s good news. In fact, it’s the only news that’s important. In closing, I’m not telling you whether you should be for or against Social Security, but the argument that it is going bankrupt is a non-starter. It is much ado about nothing. http://www.forbes.com/sites/johntharvey/2013/01/07/social-security-rerun/ Thailiketoo ... your ignorance is astounding; please explain how social security cannot go bankrupt; you do understand that a proportion of monies collected by the 'State' goes to many funds, not just Social Security ...that the USA IS Bankrupt (unless you think 17 trillion dollars in debt and printing money by the billions each day is legal?) ... many counties, cities and even States in the USA are Bankrupt ... You waffle on about macro and micro economics as if there is no association; let me explain it simply, if the man of a family of 4 is unemployed, the State cannot collect revenue from him; and even thought the USA puts a ceiling on the social security payments, he will draw social security. If that proportion of the revenue collected for allocation to social security is less than is paid out, that is were 'bankruptcy' occurs. And you contradicted yourself by stating " It’s not a pension fund into which you put your money when you are young and from which you draw when you are old. I.t’s an immediate transfer from workers today to retirees" America is bankrupt, it cannot pay its creditors; therefore its Social Security system is bankrupt. 1 Link to comment Share on other sites More sharing options...
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