Posts Tagged ‘insurance’

“Americans feel squeezed because the cost of rent, medical insurance, and tuition – as well as other basic living expenses – is rising much faster than their wages. This creates very real problems for ordinary people.

By every measure – including stagnating wages and rising costs – things have been going downhill for the American middle class since the early 1970s. August 15, 1971, to be exact. This is the date President Nixon killed the last remnants of the gold standard. Since then, the dollar has been a pure fiat currency.

The rejection of sound money is the primary reason why inflation has eaten up wage growth since the early 1970s – and the primary reason why the cost of living has exploded.

Measured in gold, wages in the U.S. have fallen over 84% since 1971…. Priced in gold, the minimum wage has fallen 87% since 1968. Note that the federal minimum hourly wage was $1.60 in 1968. It’s $7.25 today, or 353% higher in dollar terms. But that $7.25 buys 87% less than $1.60 did back in 1968. That’s the story you won’t hear from the mainstream press.

Inflation follows a clear a pattern of corruption:  In a fiat currency system, the government will invariably print an ever-increasing amount of currency. This makes prices and the cost of living rise faster than wages. The average person feels the pain, but doesn’t understand what’s happening. More people support politicians who promise freebies. In order to pay for the ‘freebies,’ the government prints more money. This creates even more inflation, and the cycle repeats.”

-Nick Giambruno

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“The way we treat retirees in this nation is broken…

When the government created Social Security, it was as an anti-poverty insurance program… not a way to pay for your entire retirement. In fact, it began with only a 2% payroll tax and promised to never take more than 6% of a worker’s pay.

That promise was broken.

Today, Social Security takes a combined total of 12.4% of your pay.

And what do you get guaranteed in return?

Nothing.

According to the Social Security Administration’s own website, the Supreme Court ruled in 1960 that citizens have no legal rights to Social Security, no matter how long they paid into the system.

Social Security’s costs this year exceeded its income for the first time since 1982.”

-P.J. O’Rourke

“According to the Social Security Board of Trustees, the Social Security disability insurance trust will be completely depleted by 2016. This dire situation led the trustees to state in their summary that ‘more far-reaching legislative measures are required to maintain the solvency of Social Security relative to Medicare’….Regardless of how things play out, it’s clear you cannot and should not rely on government largesse to secure your retirement. And saving money in tax-advantaged accounts is critical… Because whatever solution is found… you can be sure your tax bill will go up as a result. There’s no other choice.”

-Sean Goldsmith and Dan Ferris

The good:  A person can save thousands of dollars over the long haul (if the home is kept for the long haul).  The bad:  There are many miscellaneous fees and finance costs associated with the refinance; lower home value, in relation to limited equity level, may lead to the necessity of paying private mortgage insurance (PMI).  The ugly:  mortgage interest is front loaded up to 90% once again, lowering the amount of the payment going toward principal.  This refinancing, coupled with the average American moving every 5-7 years, keeps homeowners spending the majority of their money on interest instead of building equity.