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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Illinois Bankruptcy Acknowledged by the Mainstream Media

By Joe Scudder – Re-Blogged From Eagle Rising

The fact that Illinois bankruptcy is practically inevitable finally gets reported on.

There are signs of Illinois bankruptcy everywhere. The gridlock in the state legislature may be a cause of it, but it is more significant as a symptom. The Democrat-dominated system has broken down because there is no money left. The usual compromises don’t work anymore because they cost too much.

Another sign is that both Powerball and Mega Millions are halting business in Illinois because the state can’t afford to pay off winners. They’re afraid continuing in Illinois will wreck their reputations.

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Retailers Going Bankrupt at Staggering Rate

By F McGuire – Re-Blogged From http://www.newsmax.com

Retailers reportedly are filing for bankruptcy protection at a disturbing rate that’s flirting with recessionary levels.

Meanwhile, a steady stream of store closures continues to haunt the battered American retail industry.

“It’s only April, and nine retailers have already filed for bankruptcy since the start of the year — as many as all of last year,” Business Insider explained.

“2017 will be the year of retail bankruptcies,” Corali Lopez-Castro, a bankruptcy lawyer, told Business Insider. “Retailers are running out of cash, and the dominoes are starting to fall.”

More than 3,500 stores are expected to close over the next several months, BI reported.

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PEMEX: Mexico’s State Oil Company On The Verge Of Bankruptcy & Collapse

By SR Srocco – Re-Blogged From https://srsroccoreport.com

Mexico’s state oil company, Pemex, is a perfect example of the ongoing collapse in the global oil industry.  Falling oil prices and declining production are putting severe pressure on the company’s financial balance sheet.  It has been four long years since Pemex posted a small profit.  However, since 2012, Pemex has suffered huge annual losses while its long term debt has exploded.

The result is… Pemex is technically bankrupt.  Now, I am not the only one saying this.  There have been several articles written about horrible financial situation at Pemex.  According to the following article, Mexico’s Largest Company Is Broke:

March 3, 2016:

Mexico’s largest company is broke. The country’s state oil company, Pemex, which is one of the federal government’s main sources of revenue, is losing money and is one of the world’s most indebted oil firms. The company’s production has dropped for 11 straight years now, while gross income plummeted more than 80 percent last year.

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Welcome To The Third World, Part 21: This Pension Thing Is About To Get Real

By John Rubino – Re-Blogged From Dollar Collapse

“The problem with police officers and firefighters isn’t a public-sector problem; it isn’t a problem with government; it’s a problem with the entire society. It’s what happened on Wall Street in the run-up to the subprime crisis. It’s a problem of people taking what they can, just because they can, without regard to the larger social consequences. It’s not just a coincidence that the debts of cities and states spun out of control at the same time as the debts of individual Americans. Alone in a dark room with a pile of money, Americans knew exactly what they wanted to do, from the top of the society to the bottom. They’d been conditioned to grab as much as they could, without thinking about the long-term consequences.”

Michael Lewis, Boomerang: Travels in the New Third World

Though it may not be instantly clear, in the above quote Michael Lewis is talking about public sector pensions and how over the course of several decades, mayors and governors across the US have colluded with police, firefighter and teachers unions to promise outrageously-generous benefits and then failed to put aside enough money to pay for them.

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IS OUR ACCOUNTING SYSTEM FLAWED?

cropped-bob-shapiro.jpg   By Bob Shapiro

I have come across a readable, though scholarly, article explaining why government / central bank tinkering with interest rates – either raising rates above market or lowering them below market rates – is destructive to an economy. Dr. Antal Fekete outlines the accounting laws of Assets and of Liabilities, which were abandoned with the creation of the FED in 1913.

His piece is in pdf form, so it couldn’t be pasted here. I strongly suggest you follow the link to the online file: http://www.professorfekete.com/articles%5CAEFIsOurAccountingSystemFlawed.pdf