Every year the trustees of the Social Security System — officially known as the Old-Age and Survivors Insurance and the Disability Insurance trust funds or the OASI/DI trust funds — provide their most recent estimates of the solvency of Social Security. Starting back in the mid-1980s, Social Security began collecting more in annual payments from current workers than was paid out to retirees, producing a favorable balance in the Social Security Trust Fund, amounting to nearly $2.7 trillion in assets as of Dec. 31 of last year. At this very basic level, it may seem as though all is well.
May 15 2012 | Posted in
Jim Newton |
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Late last week and over the weekend, a flurry of developments related to the near and longer term economic outlook took place, most of which could be a cause for concern.
May 8 2012 | Posted in
Jim Newton |
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In the game of poker, one of the weakest hands that a player can possibly draw is a pair. Not often a winning hand, unless everyone else has essentially nothing and is simply operating with a “high card” opportunity to win. So, two-of-a-kind may be better than nothing, but just barely.
May 2 2012 | Posted in
Jim Newton |
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Europe is economically big — very big. The 17 nation euro-zone is approximately equal to the size of the U.S. economy (depending upon how valuations are calculated in terms of currency conversions), and the more comprehensive 27 nation European Union (EU) is even bigger still. Given the tremendous economic interdependencies among countries of the world, when an economy as large as either of the above entities begins to experience significant economic problems, it is just a matter of time until those difficulties will be transmitted to the rest of the world.
Apr 24 2012 | Posted in
Jim Newton |
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Either by design or necessity, it seems China is finally becoming a more viable economic partner for the U.S. and other nations. Over the weekend, China’s central bank announced they would allow their currency, the yuan, to trade freely in a wider range of values than previously permitted. It is important to note that this development is quite distinct from allowing the yuan to move completely freely relative to other currencies.
Apr 17 2012 | Posted in
Jim Newton |
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As quickly as possible people should move to their home’s storm cellar or place themselves in the bathtub with a mattress on top so as to shield themselves from the rapidly approaching economic storm. Or so the message would seem to be, according to many economists, after the Labor Department’s “disappointing” labor market reports last Friday. Fortunately, the stock market was closed for Good Friday observances so the ensuing panic was stalled for a few days.
Apr 10 2012 | Posted in
Jim Newton |
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On Nov. 18, 1978 members of the People’s Temple in Guyana, led by Jim Jones, committed mass suicide by drinking cyanide-laced Kool-Aid. This unfortunate episode represented a vivid display of what can happen when people are lulled into a false sense of security/dependence and give up their individual decision-making capabilities to someone who dictates to them what is in their best interests. Sadly, had these 900-plus people not succumbed to the destructive, siren-like call of Jim Jones, their lives and family histories would not have ended so tragically.
Apr 3 2012 | Posted in
Jim Newton |
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While in Columbus last week President Obama suggested that those who oppose alternative energy sources might be considered members of the “flat earth society,” much like people who opposed exploration by the likes of Christopher Columbus. In this instance, according to the president, those who cling to fossil fuels and ignore alternative energy sources are much like ostriches, plunging their heads into the ground and failing to understand the need for change in any active, growing and healthy economy.
Mar 28 2012 | Posted in
Jim Newton |
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