Month: July 2016

The Economic Election that Isn’t, but Should Be

No Presidential Candidate is Addressing U.S. Domestic Obligations No presidential candidate is addressing U.S. domestic obligations. The nation’s debt is almost $20 trillion and growing. Government programs like Social Security, Medicare and Medicaid are currently unsustainable. Military and government workers’ pension programs are underfunded. Soon, the interest alone will be the country’s number-one expenditure. The election from an economy view doesn’t appear to offer any solutions for the financial dilemma America faces and of which both parties are absolutely culpable. From a money point of view, all three candidates are spenders. Bernie’s social revolution, while perhaps benevolent, is handing...

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Longevity Effects Products, Plans and Quality of Life

Life Insurance Getting Cheaper, Lifetime Annuity Payouts Getting Smaller Living longer is having a rippling effect on the pricing of mortality products like life insurance (cheaper!) and lifetime annuity payouts (smaller!). Many retirement plans have not accounted for projected longevity, so retirement funds may be short, and an increase in medical and long-term care costs are almost certain. Living longer also brings into question the quality of life if you live to age 100 and beyond. One of the barometers of future longevity can be found in the pricing of life insurance. As the human timeline extends into new...

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U.S. Consumer Credit Tapped Out

Student Loans Surpasses Auto Loans and Credit Card Debt The holidays are over. 2016 has begun. The number-one New Year’s resolution (again) is losing weight, not far behind at number-two is getting out of debt. There’s bad debt, and better debt, but there’s no such thing as good debt. Last year’s holiday capped off a dramatic increase in consumer discretionary spending. But it’s not discretionary spending – it’s consumer borrowing. Americans have access to significant lines of credit with credits cards, home equity or payday loans. But an emerging trend finds consumers borrowing from their 401(k)s, leveraging their portfolios...

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America: Balance Sheet Bankruptcy

U.S. Prints Money, Suppresses Interest Rates & Raises Taxes The U.S. debt is running hot and over-heating at $31, 558.21 per second based on the last 6 months and closed out 2015 with almost $18.8 trillion in the red according to the US National Debt Counter. (nabber.org) And with few exceptions, most states are in no better financial shape than the federal government. Time is running out. We’re just minutes before midnight. And when the bell tolls, it may be tolling for America. The federal government’s debt is fast approaching $19 trillion, but that’s not the half of it....

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The Global Glut of Debt

Worldwide Crisis Caused by Government Debt & Pension Obligations The nations of the world continue to print money, expand their governments and obligate their taxpayers with debt they can’t repay. The world economy is so interconnected, that when the first domino falls it will cause a rippling effect of a worldwide monetary tsunami. Countries are on a budget busting spending spree, borrowing money from their future and printing money to make up for their shortfalls. Global indebtedness may be as big as $100 trillion as we enter 2016 and growing at astronomical rates. And with no spending restraints in...

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