muses of the moment

July 19, 2011

Seniors to die a slow death….

Filed under: Social Security and Medicare, US Government Debt — totallygroovygirlfriday @ 6:08 pm

…one percentage point at a time.

The current “compromise” on the table to get the debt ceiling raised. Click here for detail.

Enacting a $500 billion down payment that would secure immediate deficit savings, while establishing a fast track process for the committees in Congress to specify further savings

  • Impose statutory discretionary spending caps through 2015.
  • Implement numerous budget process reforms.
  • Shift to the chained-CPI (a more accurate measure of inflation) (gg: yeah-right) government-wide starting in 2012 (gg: Nov, after elections?), along with the following specifications for Social Security: (1) exempt SSI from the shift for five years, and then phase in the shift over the next five years; (gg: everyone in office now should have retired overseas by then) and (2) provide a minimum benefit equal to 125% of the poverty line (gg: another inadequate formula) for five years (gg: only 5 years ladies and gentlemen, after that you are screwed). (According to CBO, the shift to chained-CPI would result in the annual adjustment growing, on average, about 0.25 percentage points per year slower than the current CPI.) (gg: the current CPI is about 8 points off, so now, it will be 8.25 points lower than real prices. I want John Williams to review that formula! Don’t forget to add in the devaluing of the US Dollar for the foreseeable future!!!)
  • Repeal the CLASS Act.
  • Enact concrete policy changes that lock-in additional savings, including freezing Congressional pay and selling unused federal property. (gg: how about repealing Congressional pay?)
  • Require GAO and the Department of Labor to report to Congress on establishing a more effective unemployment insurance trigger. (gg: in other words, lower the trigger).

And there you have it. Congress and the White House can say they won’t cut social security, but in reality, they do. The game of bait and switch that is the US Social Security System continues….wake up! and buy some gold and silver for “retirement”, so you can actually eat.

Latest Letter from Martin Armstrong dated July 19, 2011

Filed under: Fiat Currency, Gold and Silver Investing, Precious metals — Tags: — totallygroovygirlfriday @ 4:09 pm

Click here for Martin Armstrong’s latest letter entitled Gold v Money from his Answering Your Questions series dated July 19, 2011 (3 pages).

Gold is a hedge against government policies such as we are seeing now. A gold standard for currency would not work, but cause a deflation. The problem is debt, it must collapse one way or another.

Meyers talks about debt

Steve Meyers interviewed on Global Perspectives. Great interview. Click here (about 12 min long).

Steve states the big problem with the US: we borrow to pay the interest on debt we already have. Enough said. It is a matter of time.

The US is insolvent. The whole world is insolvent.

Steve suggests holding your core gold and silver positions. Groovygirl agrees.

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