Baby Boomers Will Not Go In Reverse
Tuesday, February 9th, 2010It may be silly to point out, but the baby boomer generation is not going to suddenly stop aging, and get younger.
The number of boomers claiming benefits will continue to climb, estimated to hit 10,000 claims per day in 2011. It is already widely acknowledged that the Social Security Trust really has no assets, since the US government has been raiding the trust fund to pay for general expenses for years.
If it is clear that this is unsustainable, the real question we should be asking ourselves is how will this be handled?
Simply cutting benefits to boomers is not politically viable, no politician who wishes to keep his or her job will have the will to do it.
So what then?
Expect politicians to try and print their way out, which is what history shows politicians do when faced with such circumstances. History repeats. In Rome it was Bread and Circuses, in the USA it will be Social Security and Medicare.
Net impact? More inflation, gold goes up, dollar goes down.
Got gold yet?
Rash of retirements pushes Social Security to brink
By Richard Wolf, USA TODAY
WASHINGTON — Social Security’s annual surplus nearly evaporated in 2009 for the first time in 25 years as the recession led hundreds of thousands of workers to retire or claim disability.
The impact of the recession is likely to hit the giant retirement system even harder this year and next. The Congressional Budget Office had projected it would operate in the red in 2010 and 2011, but a deeper economic slump could make those losses larger than anticipated.


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