Tuesday, December 20, 2005
disapointment
I haven't been here for quite some time and when I do, all I find is a bunch of responses to my blog refering to this stock deal here and that special webhosting site there. All I can say is; GET LOST! Each and every one of these slime-ball posts will get a visit and I will try my best to return in kind!
Monday, March 28, 2005
Do Nothing with Social Security ?????
I received a response to a blog I wrote on Feb 5th concerning Social Security. In this response I was pointed to the following URL: http://www.spokesmanreview.com/chat/transcript.asp?id=61. At this site a Prof from E.Washington U discusses SS.
I enjoy looking at different takes on this subject so I read most of the article. If I wrote all the things that I disagreed with, this blog would be much too long to hold anyones attention, so I will hold it down to a couple of observations.
First, Mr Orr received his MA from the University of Colorado a few years after I graduated from there. He then stayed on to get his PhD. After all that has gone on at CU in the last few months with Ward Churchill, I am tempted to say..."I rest my case". What do you expect from a guy that studies at an institution such as CU? I can tell you from experience of going there in the 60's, having family living in Boulder (Peoples Republic of) and having a daughter who graduated from there, CU could easily be called the Berkley of the Rocky Mountains! Now he teaches at a school in one of the most liberal areas of the country.
As is typical of the majority of people against the reform of SS, this guy has little to say other than, let's do nothing! He calls SS an insurance system. If I am not mistaken, this is not the intent back in the 30's when the thing was created.
He thinks that private accounts would allow people to loose all their money unless they were an expert in the markets. I say, make it a requirement that only indexed funds be allowed. Or, for that matter, continue to put the money in T Notes, but with MY NAME ON THE T NOTE!
Even Chris Rock in his ranting has stated that SS is a scam for Blacks in this country because the average life span of a Black man is only 57. He is wrong on the life span (it is 67), but he has a point. Blacks put their money into SS for 35 years only to, on average, die before they even get to use it. And their families get no benefit other than the small death benefit.
He wants to fund SS with another tax increase on the RICH! Did you know that if pressed, the Libs will admit that they consider rich to be family income over $60,000 a year. How about that all you 2 teacher families making $80,000! I bet you never thought you were one of the evil rich in this country. Of course you teachers don't need to worry about SS, you have a private pension that has been doing just fine, thank you, invested in the stock market!!!
OK lets tax the really wealthy. You know, the guys and gals that make the really big money. You know Socialism! Robin Hood and all that good stuff.....does this all sound familiar?
He ignores the demographics of the Baby Boomers hitting the retirement age in a couple of years or so. His answer, well, increased productivity has taken care of this 16 to 1 gong to 3 to 1 thing. Yea, sure, why, even the libs in Congress have admitted that this is going to be a huge problem.
Orr says that Bush lied about accounts being guaranteed a better return. I am tired of these folks always using hyperbole in describing anything Bush does. I'm surprised he didn't accuse him of some Naziism. As I have stated in past discussions, it sure will not be hard to achieve a better return than what SS provides now. Particularly when you consider it is all gone when you die as the system is now..
This is much too long as it is. Nobody is going to want to read this thing, so I will end for now. Just remember, when you hear a one sided story on this very important thing, when a guy like Orr says do nothing, then head for the exit.
I enjoy looking at different takes on this subject so I read most of the article. If I wrote all the things that I disagreed with, this blog would be much too long to hold anyones attention, so I will hold it down to a couple of observations.
First, Mr Orr received his MA from the University of Colorado a few years after I graduated from there. He then stayed on to get his PhD. After all that has gone on at CU in the last few months with Ward Churchill, I am tempted to say..."I rest my case". What do you expect from a guy that studies at an institution such as CU? I can tell you from experience of going there in the 60's, having family living in Boulder (Peoples Republic of) and having a daughter who graduated from there, CU could easily be called the Berkley of the Rocky Mountains! Now he teaches at a school in one of the most liberal areas of the country.
As is typical of the majority of people against the reform of SS, this guy has little to say other than, let's do nothing! He calls SS an insurance system. If I am not mistaken, this is not the intent back in the 30's when the thing was created.
He thinks that private accounts would allow people to loose all their money unless they were an expert in the markets. I say, make it a requirement that only indexed funds be allowed. Or, for that matter, continue to put the money in T Notes, but with MY NAME ON THE T NOTE!
Even Chris Rock in his ranting has stated that SS is a scam for Blacks in this country because the average life span of a Black man is only 57. He is wrong on the life span (it is 67), but he has a point. Blacks put their money into SS for 35 years only to, on average, die before they even get to use it. And their families get no benefit other than the small death benefit.
He wants to fund SS with another tax increase on the RICH! Did you know that if pressed, the Libs will admit that they consider rich to be family income over $60,000 a year. How about that all you 2 teacher families making $80,000! I bet you never thought you were one of the evil rich in this country. Of course you teachers don't need to worry about SS, you have a private pension that has been doing just fine, thank you, invested in the stock market!!!
OK lets tax the really wealthy. You know, the guys and gals that make the really big money. You know Socialism! Robin Hood and all that good stuff.....does this all sound familiar?
He ignores the demographics of the Baby Boomers hitting the retirement age in a couple of years or so. His answer, well, increased productivity has taken care of this 16 to 1 gong to 3 to 1 thing. Yea, sure, why, even the libs in Congress have admitted that this is going to be a huge problem.
Orr says that Bush lied about accounts being guaranteed a better return. I am tired of these folks always using hyperbole in describing anything Bush does. I'm surprised he didn't accuse him of some Naziism. As I have stated in past discussions, it sure will not be hard to achieve a better return than what SS provides now. Particularly when you consider it is all gone when you die as the system is now..
This is much too long as it is. Nobody is going to want to read this thing, so I will end for now. Just remember, when you hear a one sided story on this very important thing, when a guy like Orr says do nothing, then head for the exit.
Sunday, February 27, 2005
Losers
I just got back from a walk with my dogs. We parked in the same place and saw, basically, the same cars who, too, are owned by people walking their dogs. On one there is a Kerry - Edwards sign on the rear bumper.
What is it with these people who drive around town displaying the name of a couple of losers on their car. I don't know what to think of it. Are they the type that leave their garage sale signs up in the neighborhood for 6 months after the sale, or are they just spiteful romantics that think that they are making a "Hate Bush" statement by doing it?
Get a life!
The election is over and with it, your overblown impression that the majority of this country was on your side. I would love to talk to a person like this, but I know what occur. Wide eyed, red faced and loud talking, this person would spue all the cute little sound bites she heard from all her hollywood heros (ops, I gave it away; she was a she). When you talk to her, you would find intellectual bankruptcy. And if she would, god willing, give you the the chance to bring on the overwhelmingly logical facts of your side, she would go right on as if she did not hear them.
I take comfort in the fact that no mater what she does now, she and her type cannot reverse what really happened.
Oh, by the way, when I got back to my car, I noticed a big "L" smudged on the dirty bumper, just to the RIGHT of the sticker.
I smile
What is it with these people who drive around town displaying the name of a couple of losers on their car. I don't know what to think of it. Are they the type that leave their garage sale signs up in the neighborhood for 6 months after the sale, or are they just spiteful romantics that think that they are making a "Hate Bush" statement by doing it?
Get a life!
The election is over and with it, your overblown impression that the majority of this country was on your side. I would love to talk to a person like this, but I know what occur. Wide eyed, red faced and loud talking, this person would spue all the cute little sound bites she heard from all her hollywood heros (ops, I gave it away; she was a she). When you talk to her, you would find intellectual bankruptcy. And if she would, god willing, give you the the chance to bring on the overwhelmingly logical facts of your side, she would go right on as if she did not hear them.
I take comfort in the fact that no mater what she does now, she and her type cannot reverse what really happened.
Oh, by the way, when I got back to my car, I noticed a big "L" smudged on the dirty bumper, just to the RIGHT of the sticker.
I smile
Friday, February 18, 2005
Private accts means fewer elected Democrats
Let's cut to the chase! The Dems want Social Security to stay the same because they want as many people dependent on government as possible! If you have a bunch of people dependent on the government for their livelihood whether it is SS or welfare, they are going to vote for the Dems. The dems want to expand programs. They want more and more dependent people.
You certainly would not vote republican if you thought they would cut programs.
Private accounts are owned by the people. Even the working poor. If everyone has a direct investment in the country's economy, they are going to vote for the people who want the best for business.
You certainly would not vote republican if you thought they would cut programs.
Private accounts are owned by the people. Even the working poor. If everyone has a direct investment in the country's economy, they are going to vote for the people who want the best for business.
Thursday, February 17, 2005
Social Security a Gov Ponzi Scheme
Most informed people understand that Social Security (SS) is just a legal pyramid scheme perpetrated on the working folks of America. The workers of today pay 12.3% of their gross wages (half of this paid by the employer) into SS. This money goes to pay the benefits of todays retired workers. When the system started there were about 16 young workers paying into SS for every 1 retiree. Today there are about 3 workers paying into the account for every retiree. Some day, if the system is not changed, theoretically, this figure could drop to one worker for every retiree. How would you like to pay your own family's bills and then be personally responsible for paying for the retirement of someone else.
More money is going into this system than is being spent today. The amount that is in excess of what is needed to pay the current retirees, goes into what is called the SS Trust Fund. All this is, is a bunch of T-Bonds (Treasury Bonds). What are T-Bonds, well they are obligations of the Federal Government. You can go down to your bank today and buy some if you want a low, but safe return on your money. The Trust Fund has been growing since 1983 or so when SS taxes were raised. The Fund will be in positive balance until, some say 2018, some say earlier, say 2008.
THEN WHAT HAPPENS? The government must use the built up surplus (T-Bonds) to pay some of the benefits of the then existing retirees. The problem is that to get the cash, the government must go out and TAX the people, or borrow more (sell new Bonds to investors who may or may not be Americans). Either method is not good for our economy. The debt of the government rises. Taxes must go up or benefits go down some way to pay for this mess. Since raising taxes hurts the economy (takes money out of your pocket now as a worker), benefits will probably go down! Or, the retirement age will go up.
A very important fact is overlooked in this discussion by most government lovers. The SS surplus (Trust Fund) is counted as part of the government's yearly income (taxes and such). This makes the deficit look better than it really is. If it was not part of the equation, the deficit would look REALLY bad (you know; the truth).
The answer: The Democrats want to raise taxes and the Republicans want to cut back on government spending.
A better solution is to have young workers put some of their SS taxes into an individual account that THEY WILL OWN. Yes, like a forced IRA. And like I talked about a couple of Blogs ago, this account will provide a much better return than SS does now, as shown through its history! And MOST important...you will own it. You can use it in retirement and when you die, it will be passed on to your kids. Social Security, on the other hand, ENDS when you die. And in the event you die before you are 66 years old. All your investment is gone!
More money is going into this system than is being spent today. The amount that is in excess of what is needed to pay the current retirees, goes into what is called the SS Trust Fund. All this is, is a bunch of T-Bonds (Treasury Bonds). What are T-Bonds, well they are obligations of the Federal Government. You can go down to your bank today and buy some if you want a low, but safe return on your money. The Trust Fund has been growing since 1983 or so when SS taxes were raised. The Fund will be in positive balance until, some say 2018, some say earlier, say 2008.
THEN WHAT HAPPENS? The government must use the built up surplus (T-Bonds) to pay some of the benefits of the then existing retirees. The problem is that to get the cash, the government must go out and TAX the people, or borrow more (sell new Bonds to investors who may or may not be Americans). Either method is not good for our economy. The debt of the government rises. Taxes must go up or benefits go down some way to pay for this mess. Since raising taxes hurts the economy (takes money out of your pocket now as a worker), benefits will probably go down! Or, the retirement age will go up.
A very important fact is overlooked in this discussion by most government lovers. The SS surplus (Trust Fund) is counted as part of the government's yearly income (taxes and such). This makes the deficit look better than it really is. If it was not part of the equation, the deficit would look REALLY bad (you know; the truth).
The answer: The Democrats want to raise taxes and the Republicans want to cut back on government spending.
A better solution is to have young workers put some of their SS taxes into an individual account that THEY WILL OWN. Yes, like a forced IRA. And like I talked about a couple of Blogs ago, this account will provide a much better return than SS does now, as shown through its history! And MOST important...you will own it. You can use it in retirement and when you die, it will be passed on to your kids. Social Security, on the other hand, ENDS when you die. And in the event you die before you are 66 years old. All your investment is gone!
Tuesday, February 08, 2005
Saturday, February 05, 2005
Social Security Change NOW!
The politics of Social Security is predictable, so, rather than listen to the politicians, look at the numbers.
I was in banking for 14 years and learned during that time why Einstein was so impressed with compound interest. Take the following example:
You fund your IRA with $3000 when you are 18 and continue to fund it until you are 28. Thereafter, you do nothing until you are 67 (you put no more money in the account). The account achieves a return of 6.25%. You look at your balance....
On the other hand, your best friend starts funding his IRA when he is 28 at the same $3000 level. He continues to fund it with $3000 a year until he is 67. Your friend looks at his balance...
Which one has more money in his IRA account when he is 67?
You may be surprised that you both would have about $460,000 in the account.
Both of these, of course, are not adjusted for inflation, but do you see the point?
You may argue that 6.25% is a high rate. Well, considering the stock market has achieved an average of 7.5% over the last 80 years, 6.25% doesn't look so out of reach.
Besides, arguments about how much of a return you make in private returns hardly makes a difference when you compare it to the return you make on the existing SS pyramid.
To show you the retirement security you can have by investing in private accounts, if you did receive that 7.5% return you would have $765,000 in your account. Your friend would have $630,000 in his. And if you both started out when you were 18 and continued to invest $3000 a year into the account until you were 67, you both would have an astounding $1,350,000 in your account-!!
Compound Interest!
And this is just your IRA. What if you had your SS withholding doing the same thing? I don't think we would have a problem with retirement.
There are obviously particulars that need to be worked out, but if given the chance to choose between the existing system or the one I show above, I would pick the private account.
I was in banking for 14 years and learned during that time why Einstein was so impressed with compound interest. Take the following example:
You fund your IRA with $3000 when you are 18 and continue to fund it until you are 28. Thereafter, you do nothing until you are 67 (you put no more money in the account). The account achieves a return of 6.25%. You look at your balance....
On the other hand, your best friend starts funding his IRA when he is 28 at the same $3000 level. He continues to fund it with $3000 a year until he is 67. Your friend looks at his balance...
Which one has more money in his IRA account when he is 67?
You may be surprised that you both would have about $460,000 in the account.
Both of these, of course, are not adjusted for inflation, but do you see the point?
You may argue that 6.25% is a high rate. Well, considering the stock market has achieved an average of 7.5% over the last 80 years, 6.25% doesn't look so out of reach.
Besides, arguments about how much of a return you make in private returns hardly makes a difference when you compare it to the return you make on the existing SS pyramid.
To show you the retirement security you can have by investing in private accounts, if you did receive that 7.5% return you would have $765,000 in your account. Your friend would have $630,000 in his. And if you both started out when you were 18 and continued to invest $3000 a year into the account until you were 67, you both would have an astounding $1,350,000 in your account-!!
Compound Interest!
And this is just your IRA. What if you had your SS withholding doing the same thing? I don't think we would have a problem with retirement.
There are obviously particulars that need to be worked out, but if given the chance to choose between the existing system or the one I show above, I would pick the private account.
Wednesday, January 19, 2005
Tuesday, January 18, 2005
Cold Weather Workers
Across the street a new building is being put up. It is a sunny day in the middle of the winter and there is no one there! Why, of course, they are all skiing. They wait to work when it is 10 degrees and snowing. They get nothing done, but what the HEY, they all came to town to ski anyway, didn't they!?
One wonders why it costs $250/ft to build in this town.
I wonder where the owner is. A month ago the wind blew and down came a whole two story wall. Not enough bracing was used.
This town is full of skiers that put on a carpenders belt they bought at True Value and ask $25/hr to pound nails...or should I say work a nail gun.
One wonders why it costs $250/ft to build in this town.
I wonder where the owner is. A month ago the wind blew and down came a whole two story wall. Not enough bracing was used.
This town is full of skiers that put on a carpenders belt they bought at True Value and ask $25/hr to pound nails...or should I say work a nail gun.
Monday, January 17, 2005
Monday, January 03, 2005
New Year
I have only one resolution and that is to start this blog. No weight loss promise, and no exercise plan, even though it is a major part of my life.
I saw a private jet leave the valley at 7am this morning and thought about the person that was on that jet. He was here in Steamboat, probably on the slopes yesterday or the day before. Making experiences he can talk about back at the water-cooler. Wishing he could live here year round. Not that he couldn't, because he probably could, but I have a feeling that his life is driven by money, recognition, and being in the fight. It is just too slow around here for him to be comfortable. When things slow down in the Yampa Valley, after the Christmas break ( yea, not Holliday break!), he would go nuts.
Ah, yes! To be able to go to the store at 2pm rather than 7am! Wonderful.
I saw a private jet leave the valley at 7am this morning and thought about the person that was on that jet. He was here in Steamboat, probably on the slopes yesterday or the day before. Making experiences he can talk about back at the water-cooler. Wishing he could live here year round. Not that he couldn't, because he probably could, but I have a feeling that his life is driven by money, recognition, and being in the fight. It is just too slow around here for him to be comfortable. When things slow down in the Yampa Valley, after the Christmas break ( yea, not Holliday break!), he would go nuts.
Ah, yes! To be able to go to the store at 2pm rather than 7am! Wonderful.
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