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Category Archives: "Social Security"

America’s Extreme Social Fragmentation Exposed In 3 Simple Charts

Via MauldinEconomics.com, Analysts have been conducting studies since 1994, trying to discern political polarization. These three charts look at the years 1994, 2004, and 2017. Even as late as 2004, notice the broad crossover between the median Democrat and median Republican. And then notice how wide the divide is today. Not only are the median […]

Social Security Means-Testing Looms: “It’s Impossible Without A 50% Income Tax Hike”

Authored by John Mauldin via MauldinEconomics.com, The projected total US debt will be $30 trillion within 10 years, using the CBO’s own numbers. But the CBO also makes the rosy assumptions that there will be no recessions and that GDP will grow at a 4% nominal rate. Now, that’s possible; I'm inclined to haircut it […]

“You May Be Hopping Mad When You Finish Reading This”

Submitted by John Mauldin of Mauldin Economics Uncle Sam’s Unfunded Promises Here’s a surprisingly profound question: What is a promise? Dictionaries offer various definitions. I like this one: “An express assurance on which expectation is to be based.” That definition captures the two-sided nature of a promise. One party offers an assurance, which the other […]

One Chart Explains What Bernie Madoff And Kentucky Public Pensions Have In Common

If Bernie Madoff taught us anything it’s that every successful ponzi scheme requires precisely one critical component to keep it afloat: a steady stream of fresh capital to fund redemptions.  Absent that key component, even the most carefully crafted ponzi, with the best, most creative accounting fabrications in the world, will inevitably fail from a […]

Which American Cities Will File Bankruptcy Next?

We harp on the massive, unsustainable, yet largely unnoticed, debt burdens of American cities, counties and states fairly regularly because, well, it’s a frightening issue if you spend just a little time to understand the math and ultimate consequences.  Here is some of our recent posts on the topic: America’s Pension Bomb: Illinois Is Just […]

“This Is A Crisis Greater Than Any Government Can Handle”: The $400 Trillion Global Retirement Gap

Submitted by John Mauldin of Mauldin Economics Today we’ll continue to size up the bull market in governmental promises. As we do so, keep an old trader’s slogan in mind: “That which cannot go on forever, won’t.” Or we could say it differently: An unsustainable trend must eventually stop. Lately I have focused on the […]

1 Million Ohio Public Employees Face Pension Cuts As Another Ponzi Teeters On The Brink

We’ve written frequently of late about the pension crisis in Kentucky where pensioners are facing potentially catastrophic benefit cuts as their politicians finally admit that they’ve been sold a fantasy for decades (see: Pension Consultant Offers Dire Outlook For Kentucky: Freeze Pension And Slash Benefits Or Else). Unfortunately, Kentucky is not unique as there is […]

Systemic Uncertainty, Meet Fragility

charleshughsmith.blogspot.com / CHARLES HUGH SMITH / TUESDAY, AUGUST 29, 2017 That’s the problem with fragility: everything looks fine on the surface until a crisis applies pressure. Then the whole rickety contraption collapses in a heap.. This doubt is fact-based; as the number of retirees swells, as Medicare costs soar ever higher and the number of full-time jobs […]

Pension Consultant Offers Dire Outlook For Kentucky: Freeze Pension And Slash Benefits Or Else

Underfunded public pensions are undoubtedly the biggest threat facing America’s long-term economic stability.  As we’ve argued numerous times in the past, the size of the aggregate underfunding, $5-$8 trillion depending on your assumptions, is simply too large for even the overly generous American taxpayer to cover. Of course, one of the biggest contributors to this […]

Did you see this unbelievable front page news?

Via The Daily Bell Sovereign Valley Farm, Chile A few weeks ago the Board of Trustees of Social Security sent a formal letter to the United States Senate and House of Representatives to issue a dire warning: Social Security is running out of money. Given that tens of millions of Americans depend on this public pension program […]