Social Security Inflation Lag Calendar – Partial Indexing

By Daniel Amerman – Re-Blogged From http://www.Silver-Phoenix500.com

There is a lot of advice out there about Social Security – most of which is based on Social Security being fully inflation indexed.

However, as we will establish in this first in a series of analyses, Social Security is only partially inflation indexed. As a matter of design it does not fully keep up with inflation.

Sound like an obscure difference?

“Partial inflation indexing” is little understood by the general public, but it could transform your standard of living – along with the quality of life of millions of others – in the years and decades to come. Indeed, partial inflation indexing can mean effectively having only 11 months of benefit purchasing power- or even 8 months –  to cover 12 months of expenses each year.

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Three Myths About Fixing Social Security

By Brenton Smith – Re-Blogged From Newsmax

Social Security is the largest, and arguably most important, program in the federal government. It is a life-line for millions. For the rest of us the program is a set of never-ending, polarizing arguments.

The contentiousness is caused in large part by the number and conflicting nature of the urban legends surrounding the system. Everyone has a fact that is someone else’s myth.

These convictions about the program shape who voters elect, and seriously limit what candidates are willing to say to the electorate. These beliefs have so penetrated the public conscience that actual policy makers are left herding unicorns.

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British Feds Ban Surgery for Smokers and the Obese

By Benjamin Arie -Re-Blogged From Conservative Tribune

Socialized medicine is a wonderful, compassionate system that brings important care to everyone… at least, that’s what leftists in the United States and Europe keep insisting.

As the United Kingdom is finding out, however, everyone is not actually equal under health care socialism. As soon as the system starts running out of other people’s money, people are quickly pushed out… and you’d better hope that you’re not one of the unlucky ones who gets thrown aside!

That’s exactly what happened this week in Britain, as the socialized National Health System announced that patients are being banned from important surgeries if they happen to be a bit overweight or smoke tobacco.

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‘Big Government’ Is Ever Growing, on the Sly

By George Will – Re-Blogged From National Review

The number of federal employees hasn’t changed much in 50 years, but that fact masks how the government has actually grown relentlessly.

In 1960, when John Kennedy was elected president, America’s population was 180 million and it had approximately 1.8 million federal bureaucrats (not counting uniformed military personnel and postal workers). Fifty-seven years later, with seven new Cabinet agencies, and myriad new sub-Cabinet agencies (e.g., the Environmental Protection Agency), and a slew of matters on the federal policy agenda that were virtually absent in 1960 (health-care insurance, primary- and secondary-school quality, crime, drug abuse, campaign finance, gun control, occupational safety, etc.), and with a population of 324 million, there are only about 2 million federal bureaucrats.

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Federal Grants to States

By Veronique de Rugy – Re-Blogged From Mercator Center George Mason University

The federal government spends over $500 billion annually on grants-in-aid to state and local governments, making grants-in-aid the third largest item in the budget after Social Security and national defense. In recent decades, federal aid to state and local governments has soared and, thus, increased their reliance on federal aid for the financing of certain government functions.
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Using data from the Office of Management and Budget (OMB), the following two charts place the post-1960s explosion in federal grants to state and local governments in perspective. Grants-in-aid are a primary mechanism that the federal government uses to extend its influence into state
and local affairs. Under the grant-in-aid process, the federal government claims to extend aid to the states to finance “areas of domestic public spending” or for “swift fiscal relief during the recent recession” or for when “severe and unforeseen economic conditions” arise.

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Really Bad Ideas, Part 4

By John Rubino – Re-Blogged From Dollar Collapse

As Hurricanes Harvey and Irma wreaked their havoc over the past couple of weeks, several interconnected questions popped up, the answers to which make us look, to put it bluntly, like idiots.

Why, for instance, are there suddenly so many Cat 4 and 5 hurricanes? Is this due to man-made climate change and is this summer therefore our new normal? The answer: Maybe, but that misses the point. There have always been huge storms (like the one that wiped Galveston, TX off the map in 1900, long before global warming was a thing), and barring another ice age there always will be. So the US east coast will remain one of Mother Nature’s favorite targets.

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Higher Interest Rates May Force Higher Inflation Rates

By Daniel Amerman – Re-Blogged From http://www.Gold-Eagle.com

1) Financial analysis of the three way relationship between interest rates, inflation and the U.S. national debt.

2) Higher interest rates causing higher interest payments on the $20 trillion national debt would ordinarily cause soaring deficits over time.

3) Detailed analysis of the “loophole”, which is that if inflation even moderately increases – then interest rates can rise without exploding the real debt.

4) This simultaneous increase in interest rates and inflation would have a major impact on all markets, as well as long term retirement planning.

5) The logical response to rising interest rates may be to sharpen one’s focus on how to better deal with higher rates of inflation over the long term.

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