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With all this new money being Spent / Printed impact SS and Medicare in the future?
Old 04-07-2020, 08:39 AM   #1
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With all this new money being Spent / Printed impact SS and Medicare in the future?

I was thinking, (That is what all the noise was) as we (The USA) are already in debt, how will this additional debt affect our beloved SS and Medicare programs. Do you think they will get tapped to help. I am not sure I have an answer to this, maybe nothing at all.
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Old 04-07-2020, 08:44 AM   #2
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Dreaming up new imaginary problems doesn't seem to be a good use of your time.
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Old 04-07-2020, 08:48 AM   #3
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Dreaming up new imaginary problems doesn't seem to be a good use of your time.
The money has to come from somewhere. Just looking for opinions to pass that time.
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Old 04-07-2020, 09:05 AM   #4
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The money has to come from somewhere. Just looking for opinions to pass that time.
You’re bored so you started a thread on debt, SS and Medicare, but have no opinion yourself?

Edit - These are policy matters so the thread was relocated.
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Old 04-07-2020, 09:15 AM   #5
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I was thinking, (That is what all the noise was) as we (The USA) are already in debt, how will this additional debt affect our beloved SS and Medicare programs. Do you think they will get tapped to help.
No. The money being spent by the Federal Gummint is being magically created in unlimited amounts so no need to hijack SS or Medicare funds for that. As Vice President Cheney famously said "deficits don't matter". The only tiny possible downside is massive inflation but that would be down the line so current politicians in power couldn't care less about that and anyway inflation is good for real estate operators so who cares?
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Old 04-07-2020, 09:19 AM   #6
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Just looking for opinions to pass that time.
I have an opinion and posted it below.

The govt will pay for it like it pays for everything else that exceeds income - by borrowing/printing money.

There, did that help keep you occupied for a few seconds?
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Old 04-07-2020, 09:45 AM   #7
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I too have been pondering how all the extra debt is going to impact the economy in the long run. At some point the interest on the debt is going to hit a tipping point where we will have to somehow address it. Whether it is a cut in benefits or a hike in taxes, it will impact the economy.

I guess spreading investments around different asset classes is the best defensive measure with so many unknowns going forward.
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Old 04-07-2020, 09:47 AM   #8
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You’re bored so you started a thread on debt, SS and Medicare, but have no opinion yourself?

Edit - These are policy matters so the thread was relocated.
Respectfully that is a unreasonable assumption. Our 3D Printers are working overtime and my DW is making masks for local public health personnel.

A couple of folks have actually commented and shared. Isn't the object of a forum to stimulate discussion?
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Old 04-07-2020, 10:50 AM   #9
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A couple of folks have actually commented and shared. Isn't the object of a forum to stimulate discussion?
Indeed, the objective of this forum is to discuss early retirement. You know well that debt and entitlements can be divisive topics, and when you throw them together with no structure or direction, it has a high probability of ending badly.
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Old 04-07-2020, 11:01 AM   #10
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I too have been pondering how all the extra debt is going to impact the economy in the long run. At some point the interest on the debt is going to hit a tipping point where we will have to somehow address it. Whether it is a cut in benefits or a hike in taxes, it will impact the economy.
This is a reasonable concern. The increasing debt is a sign of an economy that is weak and inefficient, and it can go on for a long while. One tipping point is when new debt just covers the debt servicing - hence the importance of low interest rates.

The most likely outcome is everyone loses from inflation. The real value of entitlement benefits declines and at the same time the real return to the bondholders goes negative. Because inflation is a silent snake in the weeds, not easily seen, people don't see this loss of value.
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Old 04-07-2020, 11:32 AM   #11
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Because inflation is a silent snake in the weeds, not easily seen, people don't see this loss of value.
At least not until milk is $25/gallon and bread is $20/loaf.
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Old 04-07-2020, 12:49 PM   #12
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Originally Posted by Helen View Post
I too have been pondering how all the extra debt is going to impact the economy in the long run. At some point the interest on the debt is going to hit a tipping point where we will have to somehow address it. Whether it is a cut in benefits or a hike in taxes, it will impact the economy.

I guess spreading investments around different asset classes is the best defensive measure with so many unknowns going forward.
A lot of that debt will be issued at very low interest rates... so the impact on the federal budget deficit should be negligible... $2T @ 1% would only be $20 billion a year.
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Old 04-13-2020, 06:19 PM   #13
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If they issue at negative interest we'll even make money on the deficit!
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Old 04-15-2020, 08:38 PM   #14
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I had a very wise and rich man tell me something following the 1987 stock crash. He said if I attended a top ten college football game and the stadium was half full two weeks in a row then it might be time to worry. I should have asked him what if nobody attended and the game was played. Could very well happen with Pro Baseball this year. These are times we have never seen before so there is nothing to compare with. I could guess what might happen but probably be wrong. For now I am staying home and trying to stay healthy
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