Funny Money Accounting—-Why Social Security Will Be Bankrupt In 10 Years

On August 12, 2016, David Stockman writes on Contra Corner:

Social Security—–Trust Fund Confetti And The Coming Insolvency

……Here follows a deconstruction of Rosy Scenario. It underscores why the nation’s entitlement based consumption spending will hit the shoals in the decade ahead.

In their most recent report, the so-called “trustees” of the social security system said that the trust fund’s near-term outlook had improved. So the stenographers of the financial press dutifully reported that the day of reckoning when the trust funds run dry has been put off another year—-until 2034.

The message was essentially take a breath and kick the can. That’s five Presidential elections away!

Except that is not what the report really says. On a cash basis, the OASDI (retirement and disability) funds spent $859 billion during 2014 but took in only $786 billion in tax revenues, thereby generating $73 billion in red ink.

By the trustees’ own reckoning, in fact, the OASDI funds will spew acumulative cash deficit of $1.6 trillion during the 12-years covering 2015-2026.

So measured by the only thing that matters—-hard cash income and outgo—-the social security system has already gone bust. What’s more, even under the White House’s rosy scenario budget forecasts, general fund outlays will exceed general revenues (excluding payroll taxes) by $8 trillion over the next twelve years.

Needless to say, this means there will be no general fund surplus to pay the OASDI shortfall.

http://davidstockmanscontracorner.com/funny-money-accounting-why-social-security-will-be-bankrupt-in-10-years/

 

The Average Black Family Would Need 228 Years To Build The Wealth Of A White Family Today

Racial Wealth Gap

Job seekers stand in line to attend the Dr. Martin Luther King Jr. career fair held by the New York State Department of Labor. (Reuters / Lucas Jackson)

On August 8, 2016, Joshua Holland writes in The Nation:

If current economic trends continue, the average black household will need 228 years to accumulate as much wealth as their white counterparts hold today. For the average Latino family, it will take 84 years. Absent significant policy interventions, or a seismic change in the American economy, people of color will never close the gap.

Those are the key findings of a new study of the racial wealth-gap released this week by the Institute for Policy Studies (IPS) and the Corporation For Economic Development (CFED). They looked at trends in household wealth from 1983 to 2013—a 30-year period that captured the rise of Reaganomics, expanded international trade and two major financial crashes fueled by bubbles in the tech sector and housing prices. The authors found that the average wealth of white households increased by 84 percent during those three decades, three times the gains African-American families saw and 1.2 times the rate of growth for Latino families.

To put that in perspective, the wealthiest Americans—members of the Forbes 400 list—saw their net worths increase by 736 percent during that period, on average.

If those trends persist for another 30 years, the average white family’s net worth will grow by $18,000 per year, but black and Hispanic households would only see theirs grow by $750 and $2,250 per year, respectively.

https://www.thenation.com/article/the-average-black-family-would-need-228-years-to-build-the-wealth-of-a-white-family-today/

The author is misleading the reader because he inaccurately describes white families as far better off and lumps them in with the 1 percent of the American population who are the wealthy capital asset OWNERSHIP class – the truly rich citizens who benefit from a rigged system that empowers them to continuously acquire more capital asset wealth. The reality is that the 99 percent are limited to earning income from a JOB only. And as companies continue to seek producing at the lowest possible cost and embrace job-destroying globalization and technological automation, good-paying job opportunities for the masses will continue to decline. EVERY citizens needs to be an OWNER.

Thus, in reality, the majority of Americans, no matter what racial ethnicity, will not be able to accumulate as much wealth as the current wealthy capital asset OWNERSHIP class holds today.

The problem is CONCENTRATED CAPITAL ASSET (valuable assets that make up a company’s worth and worth of the individuals who OWN a company) OWNERSHIP. The solution is to reform the system of monetary finance.
 
When will Americans WAKE UP and start demanding that economic policies FOCUS on creating equal opportunities for EVERY child, woman, and man to acquire personal OWNERSHIP stakes in the FUTURE formation of wealth-creating, income-producing capital assets, using INSURED, INTEREST-FREE capital credit, repayable out of the FUTURE earnings of the investments?
 
This is the ONLY way we can  put ourselves on the path of inclusive prosperity, inclusive opportunity and inclusive economic justice.
 
 

This Infographic Shows How Only 10 Companies Own All The World’s Food Brands

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On July 28, 2016, Kate Ryan writes on Good Food:

Just when you think there’s no end to the diversity of junk food lining supermarket aisles, an insanely detailed infographic comes along to set us all straight. Out of the hundreds of products at our disposal, only ten major corporations manufacture the bulk of what we toss in our shopping carts.

So whether you’re looking to stock up on anything from orange soda to latte-flavored potato chips, Mondelez, Kraft, Coca-Cola, Nestlé, PepsiCo, P&G, Johnson & Johnson, Mars, Danone, General Mills, Kellogg’s, and Unilever own just about everything you could hope to buy. It seems that six degrees of separation theory has been proven after all, if only because we all drink Diet Coke every now and then.

In order to visually elucidate that point, Oxfam International created a comprehensive infographic that reveals the extensive reach of the “Big 10” food and beverage companies. Unlikely ties between brands we largely don’t associate with one another show how easy it is to be misinformed about the American food system. For example, PepsiCo produces Quaker granola bars, and Nestlé makes Kit Kat bars but also frozen California Pizza Kitchen pies. To the surprise of many, Pineapple Fanta isn’t sourced straight from the mythical Fanta Islands, but canned right alongside Barq’s root beer at the Coca-Cola factory.

Obviously, the horrors extend far beyond our own shattered daydreams. Massive corporations squash entrepreneurial diversity and make it nearly impossible for startups and small businesses to compete. According to Oxfam’s report, “The world’s largest food and beverage companies have a lot of power – but you have more. And because they’re not using theirs enough to help poor communities or the planet, you can use yours to change the way they do business.”

If you’re looking to avoid contributing to the Big 10 world takeover, try shopping at local farmers’ markets and maybe skip out on soda and highly processed foods altogether. Your body will thank you for it in the long run anyway.

https://food.good.is/articles/food-brands-owners

This is about CONCENTRATED CAPITAL ASSET (valuable assets that make up a company’s worth and worth of the individuals who OWN a company) OWNERSHIP.
 
When will Americans WAKE UP and start demanding that economic policies FOCUS on creating equal opportunities for EVERY child, woman, and man to acquire personal OWNERSHIP stakes in the FUTURE formation of wealth-creating, income-producing capital assets, using INSURED, INTEREST-FREE capital credit, repayable out of the FUTURE earnings of the investments?
 
This is the ONLY way to putting us on the path of inclusive prosperity, inclusive opportunity and inclusive economic justice.
 
 

Neither Trump Nor Clinton Is Addressing The Biggest Challenge To Jobs: Automation

Copyright: Danomyte via ShutterstockImage by Danomyte, via Shutterstock

On July 30, 2016, Alan Boyle writes on GeekWire:

Presidential candidates Hillary Clinton and Donald Trump are both promising to bring good-paying jobs back to America, but analysts say neither of them has addressed one of the biggest challenges looming ahead: the impact of automation and the rise of artificial intelligence.

Some argue that the challenge will soon become impossible to ignore.

“Job losses due to automation and robotics are often overlooked in discussions about the unexpected rise of outside political candidates like Trump and Bernie Sanders,” Moshe Vardi, an expert on artificial intelligence at Rice University, saidbefore this month’s conventions.

See www.geekwire.com/2016/trump-clinton-jobs-automation/ for the complete article.