Tag Archives: insolvent

  • Daily Digest
    Image by sgryip, Flickr Creative Commons

    Daily Digest 8/5 – Record “Red Tide” Killing Wildlife In Florida, The Distribution Of Pain

    by DailyDigest

    Sunday, August 5, 2018, 4:12 PM

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    • Why companies flush with tax-cut cash are spending more on share buybacks than wage hikes
    • Coffins destroyed in China in search of solution to burying 9 million bodies a year
    • Trump Welcomes Immigrants, But Only If They Can Be Exploited
    • Senators introduce bill to slap 'crushing' new sanctions on Russia
    • Russian authorities prepare to soften plan to raise retirement age, sources say
    • Job growth has never lasted this long before. Neither has weak wage growth.
    • All Good Gadgets Go to Waste
    • Drug giant Glaxo teams up with DNA testing company 23andMe
    • Stonehenge mystery solved, says breakthrough scientific study
    • Apple is worth $1 trillion. Here's what that much money could actually do.
    • The Distribution of Pain, Redux
    • NOAA plans ‘outside the box’ response to save a starving Puget Sound orca
    • Meteor Explodes with 2.1 Kilotons of Force 25 Miles Above US Air Force Base in Greenland
    • Climate Change and the Next US Revolution
    • Record 'Red Tide' Of Toxic Algae Is Killing Wildlife In Florida
    • Everyday Plastics Found To Emit Greenhouse Gas Pollution As They Degrade

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  • Blog

    The FDIC Is Broke – Now What?

    by Chris Martenson

    Monday, August 17, 2009, 9:13 PM

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    This blog post is the most recent Martenson Report, which I am now making available for wider distribution.  I believe this needs to be read and understood by as many people as possible. 


    Sunday, August 16, 2009

    Executive Summary

    • With the most recent bank failures, the FDIC is out of funds.
    • The FDIC is levying a one-time fee on member banks to cover the shortfall, but it will not be enough and it punishes the prudent.
    • The FDIC has been suspiciously slow at shutting down banks that have admittedly already failed.
    • Banks have been allowed to overestimate the actual worth of their assets using “mark-to-fantasy” accounting.
    • Hundreds of banks are likely already mortally wounded and set to fail.
    • The FDIC means well, but creates a moral hazard the effects of which now haunt us.
    • Take prudent action: Choose only high-rated banks, and keep cash out of the bank.

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  • Blog

    The US is Insolvent (and headed towards bankruptcy)

    by Chris Martenson

    Friday, July 17, 2009, 2:59 PM

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    Last night, in Boulder Colorado, I had the honor to present a one-hour mini version of the Crash Course to an audience that I estimate to be in the vicinity of 300+. Sponsored by Transition Colorado, who did a remarkable and professional job of organizing and managing the event, this talk was attended by more young people than any other talk I have given.

    This was extremely heartening.

    Dr. Albert Bartlett was in attendance, which was a great honor for me, although I confess to being nervous at the thought of covering exponential growth with him in the audience. It seemed kind of like giving meditation advice to the Dali Lama. Nonetheless, I now have a picture of myself with a man who I am sure will be recognized through time as being both right and unwavering in his views on exponential growth and population.

    At the talk, I necessarily had to gloss over some important details, and one of those concerned the statement that “The United States is Insolvent.” 

    I originally wrote about this unpleasant fact back in 2006 in a Martenson Report entitled The United States Is Insolvent.  And today, unfortunately, the situation has only deteriorated. I want to revisit that topic because there is really nothing more onerous to the future prosperity of a country than going bankrupt. If you care about the future prosperity of the US, you need to understand this situation.

    Yesterday, my jaw literally dropped when I read this statement made by Vice President Joe Biden:

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  • Blog

    Confirmed – Social Security Deluged with Early Retirement Requests

    by Chris Martenson

    Wednesday, May 27, 2009, 12:01 PM

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    On April 1st, in the context of writing about a newly appreciated shortfall in Social Security funding by the CBO, I wrote this (with the part I wish to discuss in bold):

    Here’s a prediction – [the sharply reduced Social Security surplus] will be revised to the worse in about 6 months. I base this prediction on my belief that more people will opt for retirement than are currently projected and that entitlement program tax receipts will be below current projections. Also, nearly every prediction by the CBO has been revised to the worse over the past year, so I am “riding the trend” with this prediction.

    At the time, several people commented that they thought this prediction faulty and saw the possibility of the exact opposite as being more likely.

    I based my prediction on two concepts:

    1. With jobs hard to find and credit tightening, many folks would simply opt for early retirement as a means of securing any sort of cash flow at all.
    2. Many folks would (rightly) conclude that sooner or later the government would change the rules – perhaps moving the retirement date out a few years or reducing benefits or both – and opt to retire early as a means of grandfathering in their own position.

    I can’t say for sure which of these reasons is most responsible here, but it looks like #1 is the winner for now:

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