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2019-06-12 16:01 by Karl Denninger
in Federal Government , 220 references Ignore this thread
But It's The Fed.... (BS!)
[Comments enabled]

When in the course of human events....

 

$793 billion have been received for Social Security and Medicare; Treasury "counts" unemployment (FUTA) and "other retirement" in their "receipts", but in fact FUTA is an insurance contract, basically (it pays for the 13 weeks of unemployment you get if you lose your job) and the rest is minuscule.  That FUTA tax, however, is not -- it amounts to nearly $37 billion, which isn't exactly chump change.

Again, FICA is 12.4% up to $132,900 in wages.  Medicare is 2.9% on the first $200,000, and then 2.35% above that.  There is no cap on Medicare earnings.

Social Security thus far this year has taken in $605 billion while Medicare has taken in $184 billion.

Medicare and Medicaid thus far this year, however, have spent $1,072 billion and there is four months left to go in the current fiscal year!  That is, they're spending 583% what they're taking in through taxes.  Looking at Medicare alone it's close to $800 billion or more than 400% of tax receipts.  That top graph from the MTS is ridiculously dishonest in terms of how it breaks down spending; here's the detail section in question below which documents spending on Medicare hospital ($228.6 billion) and non-hospital ($317.7 billion) components, or $546 billion between them along with another $238.6 billion transferred out, all of which is actual money spent.

 

And by the way while the drug issue is real fixing it alone will do nothing as thus far this year it's only $63 billion out of the more than $1,071 billion -- or six percent of the total.  The 900lb Gorilla in the room is the felonious monopolist practices (declared illegal under 15 USC Chapter 1) found throughout the medical system; picking on six percent of the issue will do nothing.

So far this fiscal year over $354 billion has been spent on interest, or approximately double what is taken in for Medicare tax.

Social Security, on the other hand, has spent $730 billion.  This is a 21% operational deficit.

You can fix a 21% operational deficit; while nobody would like a 20% tax increase on Social Security (it would go to 7.44%) it probably won't bankrupt you.

There is no possible way to take a more than 500% tax increase to cover the medical scam.

Those politicians and pundits who talk about entitlements as the source, lumping in Social Security with Medicare and Medicaid, need to be indicted for fraud.  Their continued and intentional lying about both what has been going on and attempting to play "Scare Granny" through said lies needs to be met with severe consequences; indeed, we should consider a legal structure under which they can be hanged for that crap.

The facts are that the State and Federal AGs, Congress and our President are responsible for all of this.  There is exactly one way to stop it, and if it is not stopped then within the next few years the federal budget will detonate, destroying the economy, the markets and cutting off the ability of the government to fund itself along with all of those "promised benefits", especially health care.

It is a serious felony to conspire to fix prices or restrain trade.  So says 15 USC Chapter 1.  Both State and Federal Governments have refused to act on this; we face the destruction of our nation's finances if we do not stop it NOW.

THE MEDICAL SCAM MUST BE STOPPED IN ITS TRACKS BY ANY MEANS NECESSARY; PEACEFULLY AND LAWFULLY ONE WOULD HOPE, BUT SINCE THE ALTERNATIVE IS THAT THE ENTIRE NATION WILL BE DESTROYED THEN THE THREAT IS EXACTLY IDENTICAL TO, AND MERITS EQUALLY TOUGH CHOICES AND ACTIONS, AS AN ACTUAL INVASION BY A FOREIGN SUPERPOWER.

TIME'S UP; WE WILL NOT GET TO 2024 BEFORE THIS BLOWS IN OUR FACES.

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User Info But It's The Fed.... (BS!) in forum [Market-Ticker]
Jal
Posts: 706
Incept: 2009-03-25

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Who foots the bill?
Capitalist?
Socialist?

TIME'S UP; WE WILL NOT GET TO 2024 BEFORE THIS BLOWS IN OUR FACES.

Everybody!
Flappingeagle
Posts: 3108
Incept: 2011-04-14

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Every time I look at one of these graphs I am amazed how tiny Education and Transportation are compared to everything else. They are an afterthought at the federal level yet are used as distractions for arguments while the real problems are ignored.

Flap

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Here are my predictions for everyone to see:
S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu.
No sign that housing, equities, or farmland are in a bubble- Yellen 11/14/13
Trying to leave the Rat Race to the rats...
Peterm99
Posts: 6374
Incept: 2009-03-21

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Quote:
. . . amazed how tiny Education and Transportation are compared to everything else.
What's even more amazing, IMO, is how much of the expenditures aren't even mentioned or even implied in the Constitution as "allowable" functions of the fedgov.

There's National Defense (3rd in dollar amount), interest (which shouldn't exist at all, but I assume to be "allowable" since gov't borrowed the money), Veterans Benefits (which can be argued is a natural extension of National Defense and thus allowable), and Transportation (which could be argued as falling into the interstate commerce function and thus allowable), and finally, if one gives the total benefit of the doubt to the gov't, there's Other. So that comes out to 1992 billion out of a total of 3014 billion (just about two-thirds) of gov't expenditures that are not "allowable" functions of the gov't.

It should be no surprise that many believe the fedgov to be way, way beyond out of control and needs to be trimmed with a huge axe (and, of course, the trusty rusty chainsaw).

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". . . the Constitution has died, the economy welters in irreversible decline, we have perpetual war, all power lies in the hands of the executive, the police are supreme, and a surveillance beyond Orwells imaginings falls into place." - Fred Reed
Mickey
Posts: 82
Incept: 2014-05-19

Chic
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I just took beating from my liberal family after raising the issue of US deficits and debt, because They think we should raise spending and taxes for climate change, which as we all know, except Mickey, is proven science,

These are phi bete kappa folks and i barely made thru school except for my finance classes, so they must know better than I.
Tickerguy
Posts: 157528
Incept: 2007-06-26
A True American Patriot!
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Shoot them.

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Winding it down.
Tsherry
Posts: 1870
Incept: 2008-12-09

Spokane WA
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"Shoot them."

Naw, let them eat each other after Mickey settles just outside of Hamilton.

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Omne mendacium est.
Smacktle
Posts: 1924
Incept: 2009-01-20

Texas
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It's amazing how people throw billions and trillions around like they're nothing. Everybody I talk to just says, "they'll take care of it". I ask them who? And tell them it's your money!

I tell them the truth and they either dont want to hear it or just dont believe it.

Denial is strong across the land.

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The faults of the burglar are the qualities of the financier.
- George Bernard Shaw
Twainfan2
Posts: 41
Incept: 2018-12-04

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I noticed the National debt stopped rising on March 1st. Theyve using their extraordinary measures a lot earlier this year. Frankly, Im tired of waiting and really tired of the idiot leftists. Let it blow already...Ill take my chances. If the Democrats ever get total control of govt again this nation (as we know it) will end anyway. They will go full blown communism the first chance they get.
Aztrader
Posts: 8339
Incept: 2007-09-10

Scottsdale, AZ
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Go long ammo. Guaranteed to triple in value if they take over.
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