Monday, January 18, 2021

Tripping over a torque Vector in a Laundromat

Just for laughs type in the title of my previous post into G00gle or B1ng with or without the dash and see what you pull up. Abs0lutely n0thing.

Anything with the second or third word is subject to san1tation.  There are no c0ntrary v1ews a11owed.

If you don’t have a link to my site, you cannot akcess that article.  What the viewer can akcess is determined by the $earch eng1ne.

This is sens0rsh1p by 0m1ss1on.  0pposing views or c0ntrary information are not presented.   Reminds me of a book title that's all numbers, the G00gle sp1ders might trigger on.

In the statement “_____  kil1s doctor that tried t0 spread the a1arm;”  what is the real answer?  (hint: a form of lead poisoning) 

The comm0n man cann0t be left to th1nk for himself, it is to0 danger0us.

D1ssent is not to be t0lerated.

Take away my reader5 and you have 5ilenced me.

Friday, December 25, 2020

The Corona Virus Panic- a Chinese Fire Drill

Divided the 300,000  COVID-19  deaths by 365 days in a year and then again by 50 states and it comes out to 16.5 people a day.  Figure that 2.7 million people died in 2019 before COVID-19.  Do the same process over again. That turns out to be 148 people dying per day, per state.   This model is flawed because the 50 states are not evenly populated. I used the assumption all states are equal, to create a baseline for our perspective of the virus, normal deaths vs the virus. The normal death rate of 148 vs the perceived corona virus death rate of 16.5 a day.

When we count the COVID-19 deaths, did COVID-19 kill them or was the death from something else like old age?  We really won’t know until the statistics are gathered over the next three months on deaths nationwide for 2020.  I would suspect that we may have a drop in heart disease deaths by about 100,000.  We may have about 60,000 less influenza deaths.  I would expect an increase in opioid and alcohol related deaths.  Deaths from pneumonia will be nonexistent.

When you look at all of the diseases a person could die of, it becomes apparent, that there is the propensity to distort the actual cause of death.  Jumping to a conclusion happens all of the time.  People can die of multiple causes. The chosen choice of death can alter the statistics.  A hospital that gets a $40,000 government subsidy for each COVID-19 death, can turn a pneumonia victim into a COVID-19 statistic.  I really can’t blame a hospital for trying to make a buck.

The political ploy in this mess is very insidious.  It won the democrats an election, through fear generated upon the general populace.  The news sources have created a panic and fear campaign throughout the country.  People believe that many are dying like flies all over the place and that they are next.  79 percent of the people dying are over the age of 60 and old age is a natural form of death.  This has gotten ridiculous.  You might catch COVID-19, but it ain’t going to kill you.  But we are told if we don’t wear a mask, we are responsible for killing others.  All of the anti-mask research papers have been censored by Google. This mask mandate is a way the government can look like it is addressing the issue with a solution.  It placates the masses; wear a mask and you are safe. The Guverment will save us!

Fascism wants you to be a part of the group.  Hitler's second in command, Herman Goering said about war: 

Naturally, the common people don't want war ... but after all it is the leaders of a country who determine the policy, and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is to tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same in every country.”
  So, with COVID-19, “you are killing people by not wearing your mask.” Sound familiar?

In essence, if the state governments were to tell everyone over the age of 60 to hide inside their homes, the rest of us could continue enjoying life.  The number of people dying would not be a factor of notice for day-to-day commerce.  And commerce is what drives the economy.  Also note, the people under the age of 60 are not retired and need a source of livelihood, a job, to pay the bills.  331,000,000 people are in this country. Of the deaths this year, 1/10th of 1 percent (300,000) have been dubbed COVID-19 related.  When you compare the number of people affected by the lockdown and compare that to the number the virus has killed, the cure is worse than the disease.

“Wearing a mask is not going to keep the virus away” or “Wearing a mask will keep the virus at away.”  Neither statement can be proven, it has to be taken on faith. However, “Clapping your hands keeps the elephants out of New York City” must be true, there are no elephants in New York City.

300,000 deaths additional to the 2.7 million from all other causes is not a large amount in comparison to the total population.  By staying at home, people are not going to avoid getting the virus, it only delays it.  In the normal propagation of the virus, the more virulent strains kill the host and it ends the virus's ability to propagate. Strains that don’t kill the host, tend to survive to infect again; that is the virus to catch.  A hospital is the perfect medium for the virulent virus to survive long enough to infect others; that’s the virus you don’t want to catch.

I’m 74, if I want to go to a restaurant or fly on an airplane, I am going to enjoy my latter years of life, not sit in my home quivering in fear.   This panic has been exaggerated by the news services and needs to stop.  People are dying, but not in any amount that warrants panicking everyone.  Or maybe I should qualify that, the number of people dying is insignificant when you consider the total population.  We don’t need to ruin the lives of everyone to save those elderly who are already compromised and may catch the disease and die.  We know how to protect them now.

Imagine if the newspaper printed the headline “40 million people without jobs are starving to death.” These are the “non-essential” people in our country (restaurants, barbershops, bars, fitness centers, etc.). Take this group, bankrupt them, deplete their savings from lack of work, and now you have a real disaster. Grandma’s son is unemployed and the extra bucks he mails her isn’t coming.  40 million people not paying taxes or contributing to Social Security. This could be a very sobering year for our government. 

Another scary thing to comprehend, many readers question the validity of the writer who has no scientific credentials.  “Follow the science,” is a good way to bury one’s head in the sand.  Economics and business acumen can be a better guide to addressing the corona virus crisis, than science by itself.  Then if you discredit common sense, you mise well follow the herd off of the cliff.

The overreaction of government using lockdowns has turned a nasty disease into an economic meltdown with very obvious consequences.  The effects of which will play out in the coming year.

Well that’s all for now, I would like to wish all my readers a Merry Christmas and a Happy New Year. Take care.

 

Thursday, November 26, 2020

Voter Fraud

The election process was changed this year. Many states mailed out ballots to everyone on their rolls. This did not take into account people who have moved or are dead. It also did not take into account that many people didn’t really want to spend the effort to vote, the election didn’t matter to them.

 Another thing not mentioned is that the state now has enough information on your ballot to know how you voted. In California there is a scan code on the envelope enclosed that id’s the voter. That is the important thing, they know how you voted. Scan the envelope and then scan the ballot. This circumvents the idea of anonymous voting. They know how you voted, they know who you are and where you live. 

 I can see where people may request a mail in ballot in order to participate in an election. But when the state issues every registered voter a ballot, it gives the owner of that ballot the right to sell it for profit. The right to vote is one to where you have to show up to vote. An absentee ballot is a certificate that you receive and can be sold to a third party. This new concept of absentee voting allows people to abuse the system. Your ballot can be turned into cash. $200 to $1,000 I have heard. 50 million raised in an election campaign can buy a hell of a lot of votes. 

 Notice that voting in person keeps dead people and people who have moved from voting. One person, one vote, limits voter fraud. Count the voters registered and then compare it to the votes cast, they should match. With everything done by mail, the party running the election process, has the power to determine the results. We depend on the people doing the counting being honest. And they may count the votes correctly, who is to say that the mail in voters were legit. Voting machines can be programed to count wrong, more ballots could be printed. With only 60 percent of the people voting in most elections, it wouldn’t take many invalid votes to turn an election. 

 The real problem not noticed, is if this happens enough times in one location, the losing voter after many elections gives up and stops voting. This could be what has happened in many cities in the country. Corruption is very profitable and the voter has no redress, all they get is a sticker that says “I voted.” You may have voted, but if the results can be changed by adding fictitious votes to the ballot box, have you really voted?

 I have a blank California ballot in my hands that was not submitted that was received at our house. How can we arrive at the conclusion that the election results are correct? I could have filled it out and mailed it in, and I am too honest to do it. It kind of sucks to be a nice guy. 

Postscript:
Usually a theft involves two people, the one who lost the item, and the one who stole the item. In voter fraud, the victim is the person running for office. And he is none the wiser that a crime has been committed. He can suspect that there was abuse, but it is very hard to prove.

Saturday, November 14, 2020

The Pitfalls of Mail in Voting

In a democracy, the voter gets to elect his government officials, in secret, by voting, on election day.  Back in the 1800’s there were stories of the boss standing next to you when you filled out the ballot.  Not cool.  Think twice about voting by mail.  Your name and address are on the ballot being returned.  The government can cull out the opposition by recording how the vote was cast.  You can’t claim that you voted for someone else, it is right there in black and white.

In each election, millions of dollars are spent on advertising, to try and win your vote.  With mail-in ballots, going to every registered voter, voters who don’t even care to vote will get ballots.  Why spend on advertising in the media for your vote?  It could be a lot cheaper to buy each vote for $200 to $1,000. With a budget of 50 million, one could buy 50,000 to 250,000 unmarked but signed ballots.  This turns the mail-in ballot into a bonus check.  There is a claim that this already happened in Michigan during the previous election.  This should be illegal.  Many of our poor would rather have $1,000 in hard cash rather than voting in an election.  Notice that the time span from the delivery of the vote until the election, pretty much makes the blank ballots a fungible commodity that can be recovered and processed in a timely manner.

Another thing to look at is the voter rolls. 2.7 million people die each year in the US. That could be 2 million dead people on the rolls just for that year.  In some districts, they purge your name if you don’t vote in two general elections.  8 years of dead people amounts to 16 million dead people on the voter rolls. Mailing out a ballot to all of them might change the election results.  They have registered voters that would be 120 years old in some states. The neat thing here, you don’t have to pay dead voters for their vote.

Each year many families move for one reason or another, and re-register to vote.  This can create a duplicate second mail in ballot. A close friend of mine, moved to Pennsylvania three years ago and still received a mail in ballot for the California election. Nothing was done illegal, they moved and the election board had no idea. My next-door neighbor died last May, and I am sure he got a ballot in the mail.

 The voter election rolls determine how many voters are eligible to vote.  The mail in ballot was never meant to be for most voters.  Basically, the mail in votes were a very small number compared to the whole group of voters and the ballot had to be requested. It was different this year in California, everyone that was registered, got a mail-in ballot.  Many were ineligible to vote, dead or had moved from their registered address.  In-person voting eliminates many of the errors in polling records.  Some will not vote, because of the time and commitment involved.  Notice, if everyone listed on the voting roll can vote absentee, the ability to steal an election increases proportionally.  Your absentee ballot can be sold for cash.

If the people in charge of the voter registration are from one political party, elections can be massaged with mail-in voting.  It is not hard to compile a list of dead voters or of people who have moved out of state. This method of rigging an election is not perceivable if done surreptitiously. But in this age of computer technology, it is not hard to research and discover some of the voter fraud.  With the census that was recently taken, it might be a very easy thing to validate voter registrations by comparing it to the census data. 

Can we afford to have universal mail-in ballots?  It lends itself to internal corruption when one party runs the balloting process. The real question, is it fair that a ballot can be turned into cash?  Maybe the Supreme Court can settle the case.  If it can’t, elections will not be determined by the voters, rather the people running the election process will do it for you.  Its kind of like going into an “all you can eat restaurant.” You get up and go for seconds and are told “That’s all you can eat.”

Saturday, November 07, 2020

Problems in Paradise

Right now, everyone is refinancing their homes at the new 2 ¼ loan rate for 30 years.  Everyone with a job that is.  A lot of people are behind in their mortgage payments 6 or more months.  No problem everything is okay.  The majority of workers have a 401K retirement fund that is probably heavily invested in the stock market.  As long as it goes up, no problem.  A lot of businesses are or will be closed forever due to the Corona virus.  When the government says it is okay to open, quite a few will not be able to.

 A majority of people envision a rich businessman, as a person with gobs of money.  However, in most cases, the person is highly leveraged and knows how to manage his finances.  So, if this average rich man had to liquidate his businesses to raise cash, he might find himself broke.    It can be very hard to sell a 500-million-dollar company with 400 million in debts in a bad economy let alone shut down for 8 months.

 During the Great Depression many cities increased tax rates to make up for the shortfall from taxes collected. Their tax base had shrunk considerably.  A lot of wage earners had no taxable income, they were unemployed. The net result of the tax increases, owners let their homes go into foreclosure.  The cities found themselves owning the real estate.  The logic to raise taxes to increase tax receipts, backfired.  Notice that politicians don’t go to jail for incompetence, they usually just fade away. Their decisions during that era ruined many a family.

 In the 1929 crash, the stock market was owned by individual investors who thought they knew what they were doing. In the present market, huge mutual funds manage the market.  They are too big to get out of the market. The stock market is very vulnerable to a drastic reset, there is no reason for some of the prices, they are absurd.  It won’t be quick; it will be slow probably over three months. Everyone in the market knows what they are doing, wink, wink; they will go broke buying the dips.  Actually, in a long bull market it is very hard to lose money even if you are incredibly stupid. In the 70’s and 80’s I can remember a market, where whatever you bought, it went down.  The present investment advisors have never experienced a bear market.  Imagine what the taxes on your 401 k would be, if you tried to withdraw the whole amount at once from the market.  The government and your investment advisor are banking you won’t even consider it.  Any losses are not tax deductible.

 As the government’s rate of borrowing increases, interest rates will have to rise.    With rates rising and delinquent real estate hitting the markets, look for dropping home prices.  The monthly payment will remain the same (the price drops 50% and the interest rate doubles).  A bank offering a higher interest rates will see funds transfer overnight to their bank, reminiscent of the Savings and Loan fiasco of the 1990’s. Banks deposits are short term and they lend that money long term. The low long-term loans bankrupted the Saving and Loans when interest rates rose and depositors fled in search of higher rates.

 With a 2 percent interest rate, it takes about 33 years for your money to double.  At 5 percent interest rate, it takes about 14.4 years to double.  A thing to be aware of is that historically, interest rates reflected the risk of the investment.  That appears to be overlooked in the market of today. With the government “insuring” mortgage loans, most investors falsely perceive that there is no risk in the market. Two percent interest does not even cover the current rate of inflation of 7 percent.  If interest rates were to rise higher than 5 percent, the government would be insolvent; unable to pay the interest on the national debt or for that fact be able to finance Social Security and Medicare. What that would do to the bond market, which is 10 times bigger than the stock market, is hard to imagine or describe.

 In the present market, the best investments may be your home or precious metals. The caveat here, is do you have a job? I you don’t, there is no reason to buy either. If the Corona virus lockdown lasts much longer, things could get very difficult.  Most parts of our economic structure are stressed to the limit.  The only real sources of taxation for the government is earnings and visible assets; real estate, vehicles and retirement savings. If you are not working, you’re not paying taxes or your mortgage.

 The saving grace for our market under President Trump was the cut in business tax rates, this brought jobs back to the US and gave the rest of the world higher unemployment. After WWII the US economy surged supplying goods to the rest of the world.  Since then, the rest of the world has been making goods for the US.  This turn around of the US producing goods for itself, is a stimulus that was beginning to show results.  I’m not sure if the next administration will continue this policy.

 It looks like Congress is going to try to print its way out of the current economic instability.  At some point it has to fail. The current consensus is that it should work, because it has always worked in the past.  It’s a little like a mouse going back to the trap one more time for that last morsel of cheese.

 

Saturday, October 10, 2020

The Importance of the Supreme Court

People think that when they drive by a sign that says “littering $1,000” that it was a law passed by some legislative body, city, state, or Federal. And they are wrong.

 Here's how laws get created.  The city, state, or the Congress create departments and gives them directives to regulate.  That gives them the ability to write regulations and restrictions that relate to their governing function.  So, some bureaucrat determines the fines and penalties for violating whatever the department monitors. The regulations have the full backing of law enforcement.  With traffic, these bureaucrats set the fines for speeding, littering, parking fine rates and etc. There is no overriding commission to rule on its fairness or impropriety.

 A while back, the BLM (Bureau of Land Management) after 100 years of doing nothing, decided to charge farmers for grazing their cattle on government land. They added a new list of regulations and laws from a previously created government directive.  This ended up with a standoff with guns drawn on both sides and the Feds blinked.  The BLM, had government backing to enforce the new laws, but they decided not to enforce it at that time.  They decided that when the violator to the “illegal” tax died, they would seize the estate and get their pound of flesh with interest.

 President Donald Trump has gotten rid of a lot of government regulations/directives.  It is these regulations that create situations like the one above.  I am not sure if the regulations written to limit grazing on government land has changed, but I hope that they have.  Many, many directives restrict how land may be used. Everyone is familiar with “environmental studies” that turn land useless because of an endangered species.

 The American public doesn’t really understand how our government works.  The legal system understands how laws are generated. It’s not too hard for a lawyer to tear one apart.  In most cases, that costs money, and usually the fine is a lot less than getting a lawyer.  This is what keeps the system functional, you don’t have the dollars or the time, to chase this in the courts. Until someone does, it is law.  The most damming regulation was that for hotels with a pool, to have a lift for paraplegics to use the pool.  Where does the business owner come up with the money to finance the purchase? The device costed about $10,000. Why would you want someone in your pool with no control over bodily functions?  

 When the government creates a department, that department gets to create government regulations or “laws.”  If a bureaucrat in charge, decides that every school must have a unisex bathroom, it has the force of law, the school must conform.  The school can then appeal to the courts for a ruling. It cost time and dollars to fight these regulations. It may be a couple of years before a court ruling decides the issue.

 Both the Republicans and the Democrats have used Presidential Directives. Also, the bureau heads of government departments often write new directives to circumvent Congress when they don’t have the votes to make it law. This is the real war going on for the Supreme Court.   Do we allow the President and the Bureau heads to write the laws and have the Supreme court agree with the ruling party, or do we have a Supreme court that holds everyone to the principles written in our Constitution?

 If a liberal court ruled that guns could not be owned by citizens, then they would be confiscated.  The odd thing about this confiscation, is that the people this would be enforced upon, would be home owners.  These people can be fined and if they don’t pay, their home is confiscated.  If you are homeless, a felon, or a renter, there isn’t much that can be done to you, so you get to keep your guns.  So, if you get a liberal Supreme Court that sides with the President, home owners become an extremely vulnerable group.  Just imagine if some bureaucrat decides that every home should have solar panels -- get out your wallet.  The people that will enforce the new regulations are already in place. They will just be doing their job, it’s not their fault. Net effect, you will own the solar panels before it gets to the Supreme court.

 Think about what the Democrats want to do to the Supreme Court.  Some bureaucrat may be making all of your decisions for you in the future.  The neat thing about that, is if you become a failure, it’s not your fault.  The real question; is it the bureaucrat or the Constitution that determines the final outcome? Nine justices on the Supreme Court will decide the issue.

I don't normally talk politics, but President Trump is fighting for for what this country was founded on.  Go out and vote.  I'm not sure of who will win, but he embodies the spirit that has made this country great.

Saturday, September 26, 2020

The True Perspective of the Corona Virus Stats.

 There are 331 million inhabitants in the United States. In a normal year (citing 2018 stats), there are 2.8 million deaths. 

This year so far, we have had about 200,000 deaths from corona virus. If we calculate the normal deaths per unit of population, by dividing 331 million people by the actual deaths, 2.8 million, (before Covid). You get 1 out of every 118 people will die in a given year. That number is not high if you intuitively figure that the 331 million people alive today, all will be dead in 80 years.

 Now let's calculate the same factor for the Covid virus and let’s assume that the total deaths for this year will reach 250,000 with a population of 331 million. And you get 1 out of every 1,324 people will die from the virus.

 When we divide the normal death rate group 118 into the Covid death group of 1,324. We get 11 people will die normally for every Covid death. So, it can be concluded that a person is 11 times more likely to die of natural causes than from the Corona virus.

 The overall death rate from natural causes overwhelms the deaths from the Virus 11 to 1. The death rate from the virus  does not warrant the drastic measures taken by governments all over the world. This is a panic that may be justified for people over 70; but this group of people already has one foot on a banana peel.  The shutdown destroys the economy for the young people who must somehow survive without the means to earn a living. Government solutions to control the virus are destroying our economies.  This quarantine in the US, will probably end after the election no matter who wins.

One million people dead out of 8 billion worldwide, from the Corona virus, sounds like a lot of people (if you concentrate on the one million dead). But if we calculate the expected normal death rate for the world with the present population (assuming everyone lives to be 80) expect to see 100 million deaths a year from natural causes.

If I were to die from Corona virus, the press would report, "See, he didn't believe how dangerous the virus was."  The real motive of the press in hyping the virus is to get viewers.  How do you do that? Feed on their fear. Now you understand why only one kid in the kingdom said "The emperor has no clothes."  Reality is a matter of the viewer's  perspective.  Chicken Little was very certain that the sky was falling.

Friday, July 24, 2020

The Corona Virus Flatulence

Let figure it out, flatting the curve doesn’t fix anything, it just spreads it out. What would happen in 6 months probably will now happen in 12 months. Wearing a mask might slow down the virus. To flatten the curve, look at the area under the curve. This represents everyone that could be infected. The area under the original curve is still the same in the flattened curve. The outcome is not changed, it is only delayed.

People think that if they wear the mask, it prevents them from getting the virus. Ok suppose that it does, the virus still wants you. If you hide from it, it will find you. It just takes a little longer. The time it takes to get to you is what “flattening the curve” is all about. Not everyone is in the hospital at the same time.

The Corona virus has been hyped to panic mode for political reasons and it is no more lethal than the common cold for most people under the age of 70. Above that age it is a very serious deadly virus. Plus, there can be more than one cause of death when a person dies over the age of 70. The real odd thing is that old age is not considered as a cause of death.

When people see 145,000 deaths in the USA, their reaction lacks real perspective. About 2.7 million people die every year, that’s 1,700 a day. It has been reported that the total deaths for the current period matches pretty close to the deaths from last year. These deaths this year would have been attributed to other causes given the absence of the virus.

The anti-Trump newspapers could turn measles into the plague. Their coverage of the Corona virus deliberately squashes any glimmer of hope or optimism with the intent to panic the masses. The news rooms are not reporting the decrease in deaths each day, only the number of new cases and the total dead.

Most people when you mention the word "Rest Home” imagine some nice hacienda like setting with a bunch of seniors setting around playing cards drinking wine (don't confuse it with "Assisted Living"). A more realistic view is elderly who are senile, stroke disabled, incontinent, and bed ridden, with the room laced with lots of air freshener. Sad to say, many of these deaths can be a relief to relatives, footing the bill for rest home care, which range between $60,00 to $100,000 a year. Usually the infirmed end up in rest homes because they are a danger to themselves or others. Some of the elderly are lucky enough to avoid that, and they are the few.

If we project out about 45 days, the deaths from the virus should dwindle down to an acceptable level of about 200 a day. That is my best guess. And of course, the whole pandemic will be over the day after the election. At that point chicken little can come out and review the economic carnage. You don't have to social distance at places that will never reopen. The real suffering will start then.

Sunday, June 28, 2020

News Services panic the Nation on the Kung Flu virus

Since more testing is being done on the Corona 19 virus, the number of cases are highlighted in each news report. You have to google “Deaths Today [pick a State]" to find out that the number dying per day; the number of deaths is decreasing. This is very misleading reporting. The news services will always report total deaths and point out that the number is increasing.

Reading the reports, 20 million people are estimated to have had the Corona 19 virus in the USA. States are re-closing down because of the increase in cases reported. The way the press is handling this, is that if you test positive, you are going to die. And that is a farce. The other thing that is grossly misunderstood is the fact that if we all social distance and wear masks, this virus is going to go away and next year we will be Okay. Wrong! We are only slowing it down. We gain “herd immunity” when 80 percent of the population has had the disease; that’s about 260 million people. Most people think that if they stay at home and hunker down this will all blow over after a while. The trouble is, the time concept of how long, is missing; 6 months? 12 months? 2 years? As far as the virus is concerned 20 million served, 240 million to go. A face mask or social distancing may save you today, but the virus wants you and will wait patiently.

The other thing not mentioned, is that the less virulent strains of the virus may pass through the population at a faster rate. If it kills you, it goes no further, so we would expect it to be less deadly over time.

So, stay at home and run out of money or go back to work? This virus is not killing very many people under the age of 60.

If you are a Democrat, “We have to stay home until it is safe.” And while you’re at it, riot and tear down a monument or two.

If you are a Republican, accept the risk and open up. This disease could kill 130,000 (mostly over the age of 65). Heart disease and cancer kill 4 times more a year.

And look at the positive side, if we kill off all of the old farts (like me), Social Security won’t go bankrupt.

From an economic point of view, this shut down could ruin the country. The government has has screwed over the retirement income for those 65 and older by reducing the interest rates to zero. Compound interest is no longer the 8th wonder of the world. So if you're ready to retire, you have two nemesis; an under performing nest egg and the virus. So, go get a seat belt for your rocking chair and tour the world from your living room. Maybe you'll get to babysit the grandkids over the weekend ;>). If you stop listening to the news, you might just enjoy retirement. Influenza kills 60,000 every year in this country and no one bats an eyelash, go figure.

Saturday, May 23, 2020

The Rest Home Problem

Retirement, Ahhh the land of fulfillment. Everyone is wondering why New York sent Corona virus patients back to rest homes.

Let’s figure it out. You retire and later on when you get really old you have a stroke or get Alzheimer’s; you have a problem. Nursing homes cost $50.000 to $140,000 a year for complete care. Now if you are married, the other spouse may be in good shape, not needing the services. Paying for the service could deplete you family’s retirement savings very fast. In most states you don’t have to sell the house to get Medicare benefits for your spouse.

Usually the first step is the rest home, and then it progresses to the nursing home. Most of these places have to make a profit. So, if you have run out of funds, they try to unload you onto a Medicare home. The wait times to get in are ridiculous. If at any time you come down with an emergency health issue; heart attack, stroke, influenza or Corona virus, the hospital will accept you for treatment.

Once their situation has been addressed by the hospital, they try to ship them back to the rest home they came from. If the person is indigent, the rest home doesn’t want them back. And in some states like New York, the governor made a point that the people had to go back to the rest home they came from, otherwise they became wards of the state. The real issue was who had to pay for the person’s expenses. Gov. Cuomo did not want to fund it. And by State government decree, he inadvertently killed about 4,000 rest home patients by returning recovering corona case patients back to their rest home.

The other problem here is one that escapes most people. 50 years ago, interest rates ranged between 6 to 13 percent. And most people who saved for retirement were getting about 8 percent on their savings and their nest egg doubled every 9 years. So, today, it isn’t surprising to see retired people with savings of one million dollars. The catch is, the money no longer returns 8% interest or 80K per year, maybe about 10K. This is where seniors are getting ripped off, very low artificial interest rates.

The real question that needs to be asked, did risk leave the market? Increased risk implies higher interest rates. 1 to 2 percent return on your savings has to be a joke. The market has no risk? Is this even possible?

If the government wanted to tax someone with money how can they do it? One, by taxing the total amount saved or by printing more dollars that makes the saved dollars’ worth less. By reducing the interest rates to 1% the government is taxing savers about 7% on their money in the bank. Notice how clean this is, you don’t have to ask anyone how much money they have in the bank, the saver just get less interest.

So, if you are a senior in retirement, you get hit twice, no real interest on your savings and inflation on your savings of about 8 to 12 percent a year. And of course, you’re too old to do anything about it. And if you did, your lawsuit would outlive you. You don’t buy green bananas when your 85.

We have a new group of people in the mix, the young adults. To them cigarettes have always been $8.00 a pack. They are not about to save any money; the miracle of compound interest is dead. They will go out and buy a home, and the government loves that, more taxes and the taxes increase with the homes “value.” The old people (like me) can warn them about cigarettes costing 25 cents a pack way back when-- and that has a name “inflation.” “But grandpa that was a long time ago, times have changed.”

So, we the seniors can see that there are no future incentives to save with these very low interest rates, and now we know why our plans for retirement no longer deliver the interest rates we anticipated 40 years ago. If we live to be 85, we have a very good chance to run out of our savings if we have to go into a rest home. The governments artificially set low interest rate is stealing from those who have saved money, the people who saved for retirement. Congress knows that they can’t tax people that are broke.

If all the banks want to pay is 1 percent, convert your holdings to gold silver and platinum. Nobody on the internet can steal your savings if it is in a deposit box. It is invisible nobody knows you have it. There is absolutely no reason to have a bank account for savings, the present inflation rate of 12 percent will eat you alive (mostly in the medical field). The Government is counting on everyone to contribute to an IRA or 401 K to save on income taxes. Forget that, cigarettes will be $140 a pack when the young retire. Congress cannot print gold and silver. People need to realize that there is no risk buying precious metals. There is a risk on holding on to savings long term, the return is not there.