government that decided to bail out the universe by adding more than $10 trillion in new government debts in just the last decade? Why shouldn’t we blame the architects of this financial insanity? Awesome magazine. OK, now my question. What’s gonna happen to folks on SSDI, SSI, SS if the big crash goes down like I’m researching? Thank You and God Bless You and America – Michael Jensen Porter Stansberry comment: That’s a great question. Our entire financial system, as it’s currently constructed, is based purely on trust. Our currency isn’t backed, directly, by anything. Instead debt, of one kind of another, makes up virtually all of the reserves of the financial system. Anything that undermines people’s belief that their money is good... and that their deposits will be returned... threatens the stability of the entire system. If there’s a sudden shock to the system – like a run on the banks sparked by the risk of a Debt Jubilee – that could cause the entire transfer payments system to collapse. But look... even without a sudden panic it’s not clear to me how the government can possibly fund the promises to provide these benefits over the next 10-15 years. Ponzi schemes never last. So there will either be a dramatic reduction in benefits (who is covered, what is paid) or else there will be a huge (and in my view completely unsustainable) increase in deficits and debts.
One thing is clear, in my view: The current system must be completely restructured. And given our current political disunity, it’s hard to imagine that will happen peacefully. I’m completely dependent on government money, military retirement, VA disability, and Social Security. How do I prepare if that money stops coming? I live within my means but barely. Any ideas or recommendation. – Tim Drye Porter Stansberry comment: You need a private source of income. What can you do for others that’s valuable? Re: The Republican Tax Plan I don’t understand a tax reduction for the wealthy in hopes that it will trickle down. Why not make it a tax deduction for new jobs created. For example, a hedge fund manager makes $3 million, at 35% that’s $350,000 in taxes owed... – Fred Driemeyer P.J. O’Rourke comment: Fred, as we “go to press,” it’s still too early in the legislative sausage-making process for us to know exactly what part of the pig went into the Tax Reform sausage grinder and what part of the pig will come out. But with all due humility as a former D student in the subject, I’d like to take issue with your math... $3 million at 35% is $1,050,000.
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