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Archive for October 18th, 2009

or “Fox in the Henhouse

FDIC bank fund in the red until 2012 Ω

Even as regulators try to replenish deposit insurance fund, it will be over two years before it boasts a positive balance, warns agency chief.

Translation–We’re out of money, and we have no clue when we’ll have more.
Why Social Security Will Go Bankrupt Sooner Than People Think Ω
By Paul B. Matthews
On May 12, 2009, the trustees for the Social Security system released their annual report, The 2009 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds.”
Following release of this report, many media outlets were quick to report (or should I say regurgitate) the findings sited in the trustee’s executive summary — notably that Social Security payroll tax collections would begin to exceed benefits paid in 2016, a year shorter than had been forecasted in 2008.
Let Them Go Bankrupt, Soon Ω

The current House and Senate bills will also break the president’s second promise—not to add to the deficit. In part because the health insurance that the administration’s plan forces people to buy is expensive, the plan proposes to give individuals large financial subsidies to partially offset the cost.

That the programs will ultimately go bankrupt is clear from the trustees’ reports. On pages 201 and 202 of the Medicare report, you will find the conclusive arithmetic: over the next 75 years, Social Security and Medicare will cost an estimated $103.2 trillion, while dedicated taxes and premiums will total only $57.4 trillion. The gap is $45.8 trillion. (All figures are expressed in “present value,” a fancy term for “today’s dollars.”)
Doubling Down on a Flawed Insurance Model Ω

The entitlement-based subsidy, combined with the proposed Medicaid expansion, would add between $700 billon and $1.2 trillion to federal spending over the next decade, according to the Congressional Budget Office. The new entitlements would come on top of existing federal health-care entitlements that the government has been neither able to control nor finance.

The U.S. Postal Service: Our Next Bankruptcy? Ω

The General Accounting Office (GAO) has announced that the U.S. Postal Service is in danger of financial insolvency.

2009 Federal Deficit Surges to $1.42 Trillion Ω

WASHINGTON (AP) – What is $1.42 trillion? It’s more than the total national debt for the first 200 years of the Republic, more than the entire economy of India, almost as much as Canada’s, and more than $4,700 for every man, woman, and child in the United States.The administration estimates that government debt will reach 76.5 percent of gross domestic product – the value of all goods and services produced in the United States – in 2019. It stood at 41 percent of GDP last year. The record was 113 percent of GDP in 1945.

Much of that debt is in foreign hands. China holds the most – more than $800 billion. (–See THIS and THIS.) In all, investors – domestic and foreign – hold close to $8 trillion in what is called publicly held debt. There is another $4.4 trillion in government debt that is not held by investors but owed by the government to itself in the Social Security and other trust funds.

“I’m from the government, and I’m here to help you with your finances.”

You poor sap.

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Sunday Funnies

(H/T BEGRUNT of NB)

Dilbert.com

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Russia’s Leaders See China as Template for Ruling 

United Russia’s leaders even convened a special meeting this month with senior Chinese Communist Party officials to hear firsthand how they wield power.

Russia and China Hold Peace Mission Drills to Show USA Its Place

Russia and China will hold their joint military exercise on July 22-27 on the territories of the two countries. About 3,000 military men, 300 units of military hardware, over 40 planes and helicopters will take part in Peace Mission-2009 drills. –“Peace Mission Drills”. Nice, someone’s been reading their Orwell.

So Russia and China join forces...so as to insure that no rogue superpower ever again will present a danger to lives, to peace and tranquility. With that out of the way, the true enemies of man can be conquered: hunger, disease and poverty. –Yeah, ’cause they’ve been doing such a good job of that for their own people for the last 90 years. Mass murder, forced abortions, grinding poverty, genocide, the gulag…*cough* AKA, “Hope and Change“, baby!

“There is a political motive there too. We want to show it to the USA that Russia has a strategic partner – China – and that Russia will not be following the USA’s directions. Moreover, Russia is ready to demonstrate that it is following a different political course,” the specialist said.

Russia and China are the two superpowers that will maintain balance in a New World Order where the US empire must shrink back within its own borders and withdraw its tentacles that have spread all over the world, much to the righteous anger of the world community.

Karl Marx Predicted Collapse of US Dollar in 1857

The great October fall of the US dollar is turning into an avalanche. On Tuesday, the American currency lost nine kopeks in Russia and reached a new minimum mark this year – 29.5 rubles per dollar. Within six months (April through September) the dollar lost over 10 percent at the world foreign exchange trading, which marked the sharpest decline since 1991. Some experts believe that the American currency is close to collapse, which may lead to a new financial crisis. –See my post “The Perfect Storm” for more details.

Pravda prints the truth…that the US papers won’t. And in other news, Hell has, indeed, frozen over.

The final collapse has come with the election of Barack Obama. His speed in the past three months has been truly impressive. His spending and money printing has been a record setting, not just in America’s short history but in the world. If this keeps up for more then another year, and there is no sign that it will not, America at best will resemble the Wiemar Republic and at worst Zimbabwe.
I can’t top that, so I’ll sign off here.

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