Pensions Drive Global Debt Three Times Higher Than Previously Estimated

The debt monster hasn’t gone away. It hasn’t been tamed. It is growing, lurking, just waiting for interest rates to rise. But right now, few are concerned.

In the words of Yoda, “You will be.”

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The young can’t fund the old. Our entitlement state no longer works. This is perhaps the West’s greatest challenge.

How much student debt do you think this guy carried? If he ever carried any it was unlikely the kind of sum kids are graduating with now. Do you think he benefited from a generally rising stock market and economy during the 50s, 60s, 70s, 80s, and 90s? He looks pretty well fed and well dressed. But “hands off” HIS Social Security. Your security is less important however.

When I was in college one of the first op-eds I ever wrote was on Social Security in the college newspaper.

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Millennials Favor Private Accounts for Social Security Even if Benefit Cuts to Current Seniors Required

Destined to fail from the beginning. We need to figure this out and make difficult choices.

Look, I think there should be a phase out of the old system over say 10 years.

Older people have made calculations with the idea that Social Security would be there forever as it is now. Most people are not economists. They just did their thing in their working life and then retired as they were told they should. If we are going to change social security we should be sensitive to this very important (and very political) point.

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Chained CPI Chains Taxpayers, An essay by Ron Paul

One of the least discussed, but potentially most significant, provisions in President Obama’s budget is the use of the “chained consumer price index” (chained CPI), to measure the effect of inflation on people’s standard of living. Chained CPI is an effort to alter the perceived impact of inflation via the gimmick of “full substitution.” This is the assumption that when the price of one consumer product increases, consumers will simply substitute a similar, lower-cost product with no adverse effect. Thus,

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Despite retreat, White House determined to start Obamacare money flow (That’s how people become addicted)

It appears that the White House has been secretly negotiating with large businesses as Obamacare has veered off down disaster road. The delay of the employer mandate has everything to do with the Obama administration’s buddies in big business saying that the program is half baked at best and that they can’t comply with the tangle of red tape. So Obama has punted, on this.

Now, however, it appears the administration’s bravado was all for show. At the same time Obama was expressing great confidence,

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“Progressives” are up in arms, The President proposes a “chained CPI” provision to Social Security

The president has proposed  using something called a “chained consumer price index” for adjustments (which are always up) to Social Security payments. It in theory lessons the current rate of increase. Liberal and progressives are beside themselves. How could President Obama do such a thing?

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Hedge fund manager Stan Druckenmiller has a message for young people: “Don’t let your grandparents steal your money!”

Every time I write about the need to reform Social Security people freak out. Suddenly supposedly small government folks fly into a rage at the idea that Social Security must be curtailed for the good of the country.

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Hey Grandpa, Stop Stealing From Your Grand Kids! Social Security and Medicare are Unfair.

Hey, life isn’t fair. But we have got to do something about Social Security and the coming debt bomb.

Of course most seniors don’t consider Social Security theft, and the headline above is intended to be inflammatory, however the Social Security system we have now is completely unsustainable. It hurts many who are just struggling to make it in an economy which is very different from the rising tide many retirees experienced over the past half century.

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