As many have been predicting for years, these large and bloated bureaucracies will be bankrupt before we know it.  One of the largest problems with Medicare and Medicaid is the huge amount of fraud and overuse that takes place.  The entire system encourages the lowest quality of all citizens to breed like rabbits and fill up doctor’s offices.  In turn, many doctors see this as nothing but a huge cash cow in which they can make large profits by overcharging and encouraging the overuse of services by their patients.  Medicaid is obviously the worst culprit in promoting this behavior.  The patients don’t care because to them it’s free healthcare, and doctors don’t care because the profits are abundant.  The very nature of these government-funded programs promotes a never-ending spiral of increasing demand.

A few circumstances add to this catastrophe lingering in the distance.  One, the White population is getting older and fewer White babies are being born.  This means that there will be more demand in the future for services, but fewer productive citizens to fund these programs.  Two, the poor are growing in numbers.  Through massive non-White immigration, and by the very nature of our monetary system, the population of this country will become poorer and poorer as time goes on.  Thus, the number of people relying on social services will skyrocket over the next few decades.

Three, the fact that our country promotes the interests of the weak, ignorant, and incapable over the interests of the strong and productive can only worsen the situation.  This is because the former group will constantly grow in numbers and the latter group will likewise shrink.  This trend has disastrous consequences for society, which will stretch far beyond the realm of economics. 

Four, due to the nature of our debt-based, fractional reserve monetary system the government can only become more indebted to the bankers over time.  Since government programs are funded first by borrowing from the Fed, and people’s tax money is then used to pay back the interest, this therefore causes these programs to be many times more expensive than they otherwise would have been under a debt-free monetary system.

The bottom line, don’t count on any of these programs to be there in the future.  Furthermore, we have just witnessed the theft of billions of dollars from 401(k) accounts.  For many, the value of this account is the only chance for a decent retirement.  So don’t count on the stock market to work in your favor either, because it’s rigged against you.  What can you do?  Become self-sufficient, equip your family, and prepare for a fight.

Source: http://news.yahoo.com/s/ap/us_social_security

WASHINGTON – Social Security and Medicare are fading even faster under the weight of the recession, heading for insolvency years sooner than previously expected, the government warned Tuesday. Social Security will start paying out more in benefits than it collects in taxes in 2016, a year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner, trustees reported.

Medicare is in even worse shape. The trustees said the program for hospital expenses will pay out more in benefits than it collects this year, just as it did for the first time in 2008. The trustees project that the Medicare fund will be depleted by 2017, two years earlier than the date projected in last year’s report.

The trust funds — which exist in paper form in a filing cabinet in Parkersburg, W.Va. — are bonds that are backed by the government’s “full faith and credit” but not by any actual assets. That money has been spent over the years to fund other parts of government. To redeem the trust fund bonds, the government would have to borrow in public debt markets or raise taxes.

Filed under: Nation

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