Take me as an example. I have paid in $69,058 as of 1/1/2011. Assume I could request a check for that amount right now and not collect Social Security at retirement.
If I live to 75 (male life expectancy from wiki) and retire at 62. I would receive $828 every month for 156 months from Social Security. That is $129,168.
The government saves $60,110.
Over the next 20 years, 74 million boomers will retire. If my situation is "typical" the government could save $4.45 trillion!
Be sure you read my previous posts here.
Housing, transportation, and food are the best areas to save money. We decided to turn our existing home into rental property (a $400/month positive cash flow) and move to a much nicer part of the country. We got this place for 56K. HOA dues are $650 a year!
Zero Coupon Bonds ~ bonds that are stripped of their interest. Since bond quotes and purchases are difficult to find from the Internet (another conspiracy as far as I'm concerned), I'm using ZROZ as a proxy.
Lawmakers allowed bank consolidation and market power in violation of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. That act specified that no single bank may hold more than 10 percent of total retail deposits. Unfortunately, since 1994 two limitations of Riegle- Neal became clear, (1) the growth of big banks was not fueled by retail deposits but rather by various forms of “wholesale” financing, and (2) the cap was not enforced by lax regulators, so that Bank of America, JP Morgan Chase, and Wells Fargo all received waivers in recent years.
Then Congress had to repeal the Glass-Steagall Act of 1933, so that any financial institution can act as an investment bank, a commercial bank, and/or an insurance company. They hid this as the Financial Services Modernization Act of 1999.
To capitalize on insatiable greed, banks started marketing OTC derivatives (a.k.a. as swaps). For swaps, delivery places and dates, volume, technical specifications, and trading and credit procedures are subject to negotiation by the parties to the contracts. Swaps are traded on a bilateral basis not on a public exchange. The exposure is to default by the counterparty. Credit risk mitigation measures, such as regular mark-to-market and margining, are optional for swaps. Swaps have no regulatory oversight, they are simply goverened by the contractual relations between the parties.
Here is the takeaway: OTC derivatives grew to an estimated size of about $596 trillion before crashing in Sept. 2008. By contrast, the value of the world's financial assets—including all stock, bonds, and bank deposits—was pegged at $167 trillion in 2007.
We have had a decade of unprecedented innovations - from the Web 2.0, to genetic engineering, to hybrid vehicles, to life saving medical devices, yet the stock market has gone nowhere in the last decade.
If you go back to the Reagan era, 30 year bonds have risen nearly 300%! One would expect bond prices to tumble because of accumulated government deficits.
It's all about central banks controlling both interest rates and the money supply - not free markets. It's not about producing things. It's not about corporations providing jobs. It's all about bonds and debt.
Every day millions of people tune into CNBC and discuss stocks on Yahoo finance when it's all just idle chatter leading to bad investment decisions.
The easiest way is to simply ask the banksters for our $16 tillion back. But since the banksters rule the world, I guess we won't get that!
Means test benefits. If you made twice the median salary (approximately $33,000) in your last 5 years of employment, you get reduced benefits.
Eliminate the income limits. Why should you stop paying in just because you made more than $106,800? There are no income limits on medicare.
Legalize and tax marijuana. That may be $40 billion to $100 billion in new revenue!
Legalize and tax sports betting. Although only 35 states currently allow "gaming", that number is sure to grow. Adding $50 million to a state budget will help to eliminate the need for federal dollars.
A natural gas based economy. Get fleet vehicles and 18 wheelers running CNG. Get Detroit making those vehicles. And export LNG to other countries (USA natural gas is $2.76 but it can be liquified and sold much higher.
Make shuttered schools into shelters. They have showers, gyms, bathrooms, cafeterias, computers, and plenty of room for beds. Laid off teachers can re-train these folks in the Cheapo Groovo system, which has no layoffs or outsourcing.
I use a FREE Excel based mortgage spreadsheet to see how the life of my mortgage would change if I paid a little more each and every month to the principal. It amazed me! By paying just an extra fifty dollars a month, I was able to shorten the length of my loan by five years and ten months and save more than $18,000 in interest!