Future Social Security, Medicare and Medicaid Entitlements

By 2050, Social Security, Medicare and Medicaid will take up nearly the entire federal budget, if it remains on its present course. By 2080, Medicare alone will comprise the entire federal budget.

This projection is unsustainable. There will have to be some changes done by politicians in office as problems ensue.

But the impending debacle does point up the stupidity of those in office today, who have set forth a path to disaster, for us, our children and grandchildren.

Congress and the Obama administration are creating a bankrupt system for us and our descendants. Solutions will only involve far less services and benefits, with rationing and much higher taxes, as well as huge inflation.

We have never encountered such financial problems before.

The Obama Administration’s Stimulus Bait and Switch

The Obama “stimulus,” evolved in its usage. The old meaning had been perfectly useful in Keynesian economic parlance. But it has now became a cover for politicians who conveniently use the term to hide other motives they may have.

What the bulk of the population in the U. S.thinks of when Washington attempts to stimulate the economy is that spending will get business moving, employers hiring and consumers buying as quickly as possible. Now, and not years in the future.

Poor psychology is what makes deep economic recessions linger on. A true stimulus must promptly change that poor psychology.

But when only a small amount of stimulus money is actually designed to be spent quickly, another motive is apparent. When the vast bulk of stimulus money is designed to be a slush fund to expand federal and state government jobs, the goal is primarily different.

Media Portfolios: Doubtful Suggestions

Financial portfolios you get in the media are amusing in a sense, but, I maintain, they are not a laughing matter. Because you can get burned if you follow such advice.

The media suggestions come with some advisor mentioned; the one making the recommendations. That advisor has been singled out from among tens of thousands in the business.

Advisers are always seeking publicity; they strive to have pet portfolio ideas published in public view. So why this mention in the media? Is it a friend or relative of the columnist or reporter or interviewer?

Furthermore, the portfolios are usually an attempt to time the market. Also, they never identify objectives by investor age or risk capacity or psychological sensitivity. It makes the reportage useless. And dangerous. ( See the Earl J Weinreb NewsHole® comments.)

Annuity Termination Penalties

Annuity sales pitches often overlook start-up costs of annuity contracts that can be in effect for up to seven years.

Salesmen commissions and administrative expenses must be met. Early termination requires faster amortization. These are in addition to management fees that are imposed each year on annuities that involve variable investment.

Furthermore, the annuity may have life insurance provisions that you may not need. You will pay for that feature.

So annuities involve costs you are not aware of, And you simply cannot drop contracts willy-nilly. There will be penalties for making corrections or changing your mind. ( See the Earl J Weinreb NewsHole® for further comments.)

Financial Education Via Headlines

Investors get most of their financial and business education from the media, especially brief bytes and headlines.

Schools don’t provide an adequate underpinning of information for students to be able to comprehend economics and finance in the real world. As a result, the public cannot evaluate the bombardment of ads, nor headlines that apply to finance and business topics, or meaningful explanations from inept media sources.

They therefore get biased, one-sided opinions without any contrasting arguments or alternatives from headlines or inadequate financial and business articles.

Brokers and advisers cited in the media frequently promote a particular point of view. The media often poorly screens content.

Remember also, the importance of investor age, family status, personal psychology, finances and risk status, have lots to do with investment choice, Media slants often neglect them.

So stay alert to basics and avoid tips from questionable sources. ( See the Earl J Weinreb NewsHole® comments.)

Using Ads and Salesmen For Investment Advice

Ads give only the advantages and not the downsides of investments being suggested. Why take the advice? Yet, so many investors learn about what they buy solely from ads and salesmen.

I have now researched over 1,600 investment strategies that are occasionally or frequently used. I have also looked into the pros and cons of each. And I have not found one that has an exclusive advantage, without at least one disadvantage.

An example: Sellers of gold investments may be selling one type without discussing various other forms, or whether everyone ought to be buying gold at all, despite looming inflation. The public never gets full information.

Furthermore, investor age, family status, personal psychology, finances and risk status, have lots to do with investment choice. ( See the Earl J. Weinreb NewsHole® comments.)

Why Government Deficits Spell Future Danger

You can be certain that government deficits will spell disaster. Especially for taxpayers and even for those who don’t pay taxes. In fact, for anyone who worries about the cost of living.

Government spending debts can easily be borrowed away. That debt of today, however, is being financed at very low interest cost. Those costs will easily double and triple. Long term rates can conceivably reach 18% or so from under 4% right now,

So we are looking at astronomical debt, with poor prospects of an economy expanding where it can accommodate that debt.

The public will eventually see that today’s spending is only a down payment on future costs, to be paid by heavy taxes and a more worthless dollar. Yes, if taxes don’t foot the bill, a worthless, inflated dollar will.