Archive for Financial

Here’s a great video showing how our national debt has grown since our nation’s birth. It kind of puts things in perspective. California, here we come!

Categories : Financial, News
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On Tuesday, the Obama administration announced that Social Security and Medicare will be bankrupt sooner than expected.

Social Security and Medicare are fading even faster under the weight of the recession, heading for insolvency years sooner than previously expected, the government warned Tuesday. Social Security will start paying out more in benefits than it collects in taxes in 2016, a year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner, trustees reported.

Medicare is in even worse shape. The trustees said the program for hospital expenses will pay out more in benefits than it collects this year, just as it did for the first time in 2008. The trustees project that the Medicare fund will be depleted by 2017, two years earlier than the date projected in last year’s report.

The trust funds — which exist in paper form in a filing cabinet in Parkersburg, W.Va. — are bonds that are backed by the government’s “full faith and credit” but not by any actual assets. That money has been spent over the years to fund other parts of government. To redeem the trust fund bonds, the government would have to borrow in public debt markets or raise taxes.

Treasury Secretary Timothy Geithner, the head of the trustees group, said the new reports were a reminder that “the longer we wait to address the long-term solvency of Medicare and Social Security, the sooner those challenges will be upon us and the harder the options will be.”

But back in 2005, here is what Senator Harry Reid (D-NV) had to say about the issue.

“Today’s report confirms that the so-called Social Security crisis exists in only one place — the minds of Republicans. In reality, the program is on solid ground for decades to come.”

Hey Harry…what happened? Note to self: whenever a politician claims we have enough money to pay for some huge government program, just laugh and vote for the other guy next time.

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A recent family vacation to Disney World got me thinking. It doesn’t appear that the economy is as bad as the media keeps saying. While enjoying the Magic Kingdom, all I saw was a sea of people spending money…and when you consider what Disney charges just to walk through the front gate, there was a whole lot of greenbacks going into Mickey’s pockets. Add to that all the eight dollar hamburgers and forty dollar souvenirs being sold and Disney is probably taking in more than many third world countries. All I can say is that mouse is making some major coin.

In my opinion, if the media would just shut up about the weak economy, things would get better much quicker, and without the need for taxpayer dollars. As long as people can fill their gas tank up without having to pawn grandma’s heirlooms, people are going to continue to spend money on whatever they want. All this coverage about record losses on Wall Street, a cold housing market and rising unemployment is just fodder for the media to talk about. By continually talking about how bad Bush messed things up, it makes it easier for them to paint Barack Obama as their saviour. Unfortunately, what he appears to be saving us from is an America where the government stays out of the way. Don’t get me wrong, I realize the economy may be in a slump but there’s a lot of money being spent out there, so don’t believe all the doom and gloom you see on TV.

Categories : Financial
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Those of you who have younger children or grandchildren probably know what the Chuck E. Cheese experience is like. What you may not realize is the capitalist genius of the Chuckster. Chuck doesn’t make his money selling pizza pies. He makes his millions from trading in multiple currencies. Let’s walk through the Chuck E. Cheese experience and see just how easily the rat picks your pockets.

After you walk through the door, you proceed to the counter where you place your order for a little pizza and (most importantly) the game tokens! This is the first of Chuck’s currency trades. You give him your dollars and get back some nice shiny tokens. Then, you go take your seat to wait on your pizza. Of course, the whole time you are waiting, the kids are begging to go use those game tokens and you are faced with a major dilemma. You either let them go hit the games knowing that the pizza will be cold long before you ever get them back to the table. Or, you endure the constant bombardment of “can we go play the games now?” and make them wait and eat first. Either way, over the next hour or so your kids are running through those tokens like a hot knife through butter.

So you go and feed more dollars to Chuck’s little dollars to tokens conversion machine. All the while, Chuck is slowly converting your tokens into little paper tickets in his second currency trade. Your kids collect these tickets like manna from Heaven. A the end of the round of game play, you feed all these tickets into a machine and get a paper voucher showing the number of tickets you have. Then, you take this voucher to the prize counter where you can “purchase” your glorious prize. This is where Chuck’s final currency trade takes place, converting your paper tickets into little plastic trinkets.

Whew…the day of fun is now finally over and you walk out Chuck’s doors only to realize that the little plastic toys which your kids will play with for all of ten minutes just cost you sixty bucks. Yes, Chuck is one smart capitalist rat!

Categories : Financial, Humor
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