Dollar Devaluation

It seems to me that - if the US reverted back to the gold and/or silver standard like some people request and the rest of the world continued with fiat currency the value of the US Dollar and US fiscal policy would become easily manipulated through the gold and silver markets by foreign governments and other outside influences not subject to the regulatory control of the US government.

 

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I think that's what is going on right now through the actions of various central banks, the IMF and BIS. Look at China. Their currency has been undervalued compared to the US dollar for many years through the manipulation of the relative currencies. It isn't something that is easily prevented regardless of the currency system.

 

Yeah! I'm glad somebody said it. How about the youngters now who actually pay into SS and are told they won't see a single dime of that money. There is a cutoff age, and if you aren't older than that age, you get nothing.

 

Howdy all,

I made the statement that there was no combination of tax increases and benefit reductions that could cover the unfunded liabilities of our gov't that are pushing $70 trillion.

Sorry but I stlll don't think you could do it as you've proposed as you're only addressing social security and the twin medi funds. You've still got the trust funds and the debt service.

That said, I don't believe that your suggested combination of fixes lies within the realm of the politically possible.

Now, as I suggested, if you halve the value of the dollar over the next 10-15 years to monetize a goodly chunk of this shortfall AND apply your fixes, draconian that they may be, then you might just be able to pull it off.

And this is the approach I believe our decision makers will take - monetize it as much as you can, raise taxes as much as you can and cut benefits as much as you can . . . and hope for the best. I see this as the most likely and viable 'solution'.

What it means to all us boys and girls, is double digit inflation, postponed retirement, less social security and medicare/aid, and higher taxes.

peace,

rono

 

I'll assume this is in jest. Surely no one is so woefully ignorant as to be serious.

 

Thats theft.. If someone pays into the system their whole life based on the idea that when they turn 66, its there for them... and we take it away, means test it, ect... then we've robbed millions of folks of part of their retirement... for what? to fund those who didn't pay as much into the system?

Why would I, at 37, look at a system like that, and continue to pay into it, knowing it will be stolen from me?

Punishing hard work & earnings, and rewarding those who created less thruout their working life, is not going to solve this issue. It will create a new one.. where everyone works less, pay less into the system.. as why bother to work hard only to have it taken from you.

You raise taxes.. you bring in less, not more, money.

You want to cure the debt? Get government out of the way... get the red tape out of the way... let folks with money do what they do best, invest it, and earn. This is what creates jobs... creates wealth. Not the government. The government creates nothing.. it simply takes & spends.

 

BDA you've got it right. Well said.

 

i agree with this

this government seems hell bent on rewarding failure and punishing success

 

i'm 52 and they keep moving my retirement age back and back and back

i actually dont remember when they changed it from 62 to 66 and 10 months ... must have been one of these 2AM votes

I hate our political system ... they are all corrupt ... can't wait for the next election to get rid of the whole bunch

trouble is the repubs are just as corrupt

we need a third "peoples" party

 

I'm not going to get into a political discussion. I just pointed out what would save the system.

But keep in mind that Social Security was NEVER a vested retirment benefit, and therefore can't be "robbed." It is a supplemental system whereby one generation assists the other to help aleviate the crushing senior citizen poverty level that existed prior to the implementation of the system. You are not entitled to force younger folks to fund a specific level of benefits that you feel you deserve. That is theft.

 

I have found a growing number of ppl in this country are "DEAD BEATS" they work harder at not working then ay any job they could ever find. These ppl have there hand out for SSI $ and other benifts yet give nothing back! SSI is there for a reason and i have no problem helping those in need,but feel its unfair to those who have made this country what it is today and yet our goverment tells them ooooops sorry we MISS SPENT your money so you need to go with less.

 

Cloudsweeper ... I am NOT looking for a handout from the younger generation ... I have paid nearly $300,000 into the social security system since 1975 ... If i was allowed to keep that money and invest it ... even at a very small nominal interest rate ... it would be worth nearly $600,000 today ... all I want is my money back

Think before you speak young one!

 

I'm older than you, but thanks for the compliment. Maybe instead of complaining about your loss, you should be more thankful that you lived in a nation that enabled you to earn enough to have paid that much into the sytem.

On the 'bright side,' the amount you collect from social security and receive in Medicare assistance probably won't be much less than what you would have had if you invested it. One serious illness could easily cost a half million dollars these days.

 

Anyone consider the possibility that we just keep on going along as we have been, you know....more of the same. I don't think the deficit or debt problem is something new.....yet things just keep chugging along as they've always have. 13T dollars debt, do I hear 14T...70T to the man in the corner......do I hear 80T....100T to the chinese man in the front row......120T to the Indian man in back......150T to the Japanese man off to the side.....etc.

 

I wouldn't rule it out. The Federal Reserve and US Treasury financial engineers are much smarter than people give them credit for, and have tools available to them that didn't exist when past systems failed. Who knows what they might come up with.

 

"The Federal Reserve and US Treasury financial engineers are much smarter than people give them credit for"

This cracks me up! Yes, that's why those bozos completely missed the subprime crisis. In August Benanke says the subprime crisis is contained and our biggest threat is inflation ... two weeks later ... we have the biggest financial crisis in the history of the planet. They write AIG a blank check and give away money with no strings to all those financial institutions under the guise that they need money to loan out to mainstreet ... as soon as the banks get the money they buy t-bills at 3 percent and pocket the profit. Right ... the fed is made up of a bunch of geniuses.

 

Oh please....:rolling: We don't even have the biggest financial crisis going on right now.

 

Social Security is a tax. It is a payroll tax. It is a flat rate tax imposed equally on all US wage earners.

 

Well, biggest is a matter of opinion. But 9.7% unemployment and deficit going through the roof isn't exactly a well run economy. And I'd venture to say it's a crisis.

 

i was talking about 2007 (September 2007)

dont you all read the news?