Hayek vs Keynes

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Today’s tax day. If you haven’t seen them before, here’s a rap video pitting two of the best known economists, Friedrich Hayek and John Maynard Keynes, against each other.

Don’t Count On Social Security Benefits

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The Ponzi scheme known as the Social Security Benefit system is running out of steam.

When it was first created, it was promoted as supplement to regular retirement savings for a few well-defined groups of people. Life expectancy was 63 and full benefits didn’t kick in until 65. During its first 40 or 50 years, for those who lived long enough to collect on it, it was the best and “safest” return on your money for retirement there was.

GoldMan12 300x225 Dont Count On Social Security BenefitsFar more money went into the so-called trust fund than was paid out. That “excess” was “invested” in “special” Treasury notes, in essence IOUs from the government to itself. That money then went into the general fund and was spent like all the rest. Since it was an internal debt it doesn’t even show up on the balance sheets or get counted as part of the debt.

Over the years, more and more people have been added and benefits increased to where many people expect Social Security benefits to take care of their minimum retirement needs. Life expectancy increased to 65, 67, 70, 72 years old or more. More people getting more money for a longer time with fewer and fewer people paying into the system. There was a major “patch” made in the 80′s when age for full retirement was boosted up and tax (excuse me, “contribution”) rates shot up.

As the demographics kept changing, there was less and less “excess” to tap. External borrowing had to take its place. Deficits began skyrocketing up.

Not one penny was paid out on those “securities” until just a few years ago.

It was all just funny money on cooked books. Nothing was being cashed in. Nothing taken out of revenues, only more put into the general fund and replaced by those IOUs. Treasuries are only as safe as the government’s power to take money from current taxpayers.

The Court has already ruled that you have no legal claim to Social Security benefits. There is absolutely NOTHING that guarantees that the retirement payments you expect will continue to be made or at what level or at what retirement age or with what COLA formula (if any) or any other change they want to make, after all, it’s just another law.

One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It is simply too painful to acknowledge — even to ourselves — that we’ve been so credulous. (So the old bamboozles tend to persist as the new bamboozles rise.) – Carl Sagan

Climate Change Debate, Global Warming, Cow Farts and Carbon Emissions

Carbon costs

I don't deny that there has been global warming. That's usually what happens when ice ages end. Yes, there has been an increase in CO2 and CO2 is a greenhouse gas. So is methane. The biggest greenhouse gas is H2O in the form of clouds. Overall … [Continue reading]