Deflationary

Smash?

Get Totally Out of Stocks – Deflation Coming – Charles Nenner

So, where is Nenner telling people to stash their cash? Nenner says, “Put your money in the bond market.  A new bull market in bonds is developing. . . . The people in the Fed are now in their 60’s or 70’s, and what they remember is inflation, inflation and inflation.  I think they are on the wrong side.  It’s very hard for them to turn around and say deflation, deflation and deflation as it is for most market people because they haven’t lived through deflation.  In the last 500 years of investing, deflation is the norm. . . . I think deflation is the problem, and I see hawkish comments from the Fed, and I don’t think they are going to raise interest rates. . . .We are going to have a deflationary crisis coming up.  . . . Interest rates will go lower because we are going into a recession and even a depression.”

Nenner is also long term bullish on gold. Why does he like the yellow metal?  Nenner says, “Gold goes up 50% of the time in inflation and also 50% of the time in deflation.  Most people don’t know that.  If stocks go down and bonds are not safe and real estate goes down, where are you going to put your money?  You put it in gold.”  

Charles Nenner also is predicting oil will fall to $20 a barrel. He says it’s all part of the coming global deflation crisis that is coming.

 DYI

Don’t Steal

Governments Hate

Competition

Hugo Chavez’s Daughter worth $4.2 Billion with a “B” She’s never had a job ?

The richest person in Venezuela isn’t a billionaire industrialist, but the daughter of dead socialist President Hugo Chavez, according to Venezuelan media reports. 

Maria Gabriela, Chavez’s favorite daughter, is reported to be worth a staggering $4.2 billion. Gabriela’s father was a notorious opponent of capitalism and Venezuela’s entrepreneurial class. When he was alive he went so far to say “capitalism leads us straight to hell.” 

Chavez was also a vicious opponent of the Unites States over the course of his life, declaring that the “North American empire is the biggest menace to our planet.” 

If the reports turn out to be true, Gabriela would be significantly richer than Venezuela’s richest businessman Gustavo Cisneros, whose estimated wealth amounts to $3.6 billion. According to the Criminal Justice International Associates, the Chavez family amassed a vast fortune at the height of Venezuela’s oil boom.

 DYI:  Is anyone surprised?

DYI

Russian

Flashpoint 

7 dead in clashes between police, militants in Russia south

Dagestan is a mostly Muslim region between Chechnya and the Caspian Sea, and it has been a breeding ground for Islamic militants who mount regular attacks on police and officials. Some of the militants have sworn allegiance to the Islamic State group, and hundreds of local residents have joined the IS in Syria and Iraq. 

Russia fought two wars against separatists in the neighboring province of Chechnya after the 1991 breakup of the Soviet Union.

DYI:

Geography plays a key role in Russian defensive position as long as the mother land is firmly in the Caucasus’ mountains, once lost the lowlands are wide open for radical Islamic northern drift providing a tempting target for Russia’s southern agricultural crown jewel Volgograd.  This is why Russia will flex their military firepower in areas such as Chechnya and Ossetia to firmly maintain their grip tactically and strategically in the mountains. 

As always Turkey is Russia’s main competitor in this region.  Don’t be misled by all of the happy talk between the mother land and the aspiring redo of the Ottoman Empire (Turkey); during best of times aggressive competitors and the remainder bitter enemies.  Don’t think for a minute Ankara – capital of Turkey – wouldn’t fund radical Islamic organizations to do the dirty work in their northern move to fill in the gap between the Ukraine and Kazakhstan capturing Volgograd Russia’s southern food distribution center. You can bet on it.  A flashpoint for war between Turkey and Russia is always a possibility.

DYI

Mission

Accomplished 

World Domination--it has a nice ring, doesn't it? Here's how to achieve it in 5 steps:

1. Turn everything into a commodity that can be traded on the global market:

 2. Enable private banks to create money out of thin air via fractional reserve banking.

3. Establish a central bank with essentially unlimited ability to bring money into existence and use it to backstop the private banking sector. 

4. Undermine/destroy local economies' ability to organize production and consumption without using credit and fiat currencies (i.e. money controlled and issued by central and private banks). 

5. Buy up all the productive assets and income streams of the world with nearly free credit-money.

DYI

Debt

Addiction

'There Is No Cure for this Disease...

DYI:  Any article by Hugo Salinas Price is a must read as a truth teller who lets the chips fall where they may and not concerned with hurting anyone’s tender little hearts.  This article is “spot on” regarding America’s Bretton Woods Agreement that set the stage for the disembowelment of the U.S. industrial base.  Not a happy ending but being prepared is worth its weight in gold.

*******************

Mystery Deepens After US Confirms 16 Diplomats Suffered "Traumatic Brain Injury" In Cuban 'Sonic Attack'

And yet most of the mainstream media seems loathed to cover this!? Happy to focus on nazis? 

CBS News, however, did some digging, discovering from a review of medical records that the American and Canadian diplomats in Cuba have been diagnosed with mild traumatic brain injury - and central nervous damage - after an apparent attack with a sonic weapon targeted their homes.

 DYI:

Not mentioned in the article Belarus strikes me as the most plausible player providing technical assistance.  They are a staunch ally of Russia, however they have been known for outside employment – mercenaries – plying their well honed secret police skills. 

DYI

IMF's track record...Be Afraid....Be very Afraid!

IMF: We see a broad-based global recovery

DYI

Financial

Feudalism

This person asked the internet if it was necessary to save so much for retirement — the response was surprising

Other commenters added that there are so many unknowns in the next four decades. “I think it’s good to maximize retirement savings when you can as there may be periods of your life where you’re unable to do so for one reason or another,” SpidermansMom said. People shared personal stories: that user said her husband fell ill and lost his job, and they suddenly went from two salaries to one. He was too sick to watch their son, who stayed in day care, and she couldn’t save as much for retirement, but felt comforted by the fact they had been maxing out their retirement plans for years before.

DYI:  Great article from Market Watch and a “shout out” to the author Alessandro Malito.  Who has sensed that taking care of one’s finances is far more precarious fraught with unknowns all stretched over a 40 year period of time.  DYI has moved long ago from the concept of the money game – save and invest 10% of your income – to Machiavellian total war.

Why?

American society economically and culturally has become one giant debt machine that has captured our populous into a lifetime of interest payments.  Mortgages, car loans, student debt and credit cards are so widely accepted – as a way of life – by the public the banking class has morphed into a modern day corporate financial feudal state.  It is entirely possible for families – soon to be the norm - paying interest from cradle to grave!

Total War

The preppers have the right idea not necessarily for our financial total war concept correct nevertheless.  Complete rejection of borrow and spend mentality only doing so when no other choice is available.  Purchase a house and cars way, way, below your means.  Paying cash as the norm; avoiding debt equivalent of the plague.    

DYI             

The professional investor has no choice but to sit by quietly while the mob has its day, until enthusiasm or panic of the speculators and non-professionals has been spent. J. Paul Getty

Bubble

News 

August 28, 2017

The Conceit of Central Bankers and the Brief Illusion of Wealth

John P. Hussman, Ph.D.

At the recent market high, the consensus of these measures was consistent with estimated S&P 500 total returns of zero over the coming 12-year period,

 with an interim market loss on the order of -60% over the completion of the present market cycle.

It’s also worth remembering that when interest rates are low because growth is also low, no valuation premium is “justified” at all.

In short, the belief that Fed-induced speculation creates “wealth” is a conceit that rests on the delusion that “wealth” is embodied in the price of an asset, rather than the stream of cash flows it delivers over time. It is a dogmatic misconception of self-congratulatory central bankers that even the deepest economic downturn since the Great Depression was incapable of shaking. This lesson will be reiterated again, and again, until investors learn it, and until Congress properly restrains the Fed's wildly activist abandonment of systematic policy rules (remember also that the global financial crisis was the result, not the origin, of the Fed's activism). At present, we observe the combination of offensive overvaluation, the most extreme “overvalued, overbought, overbullish” syndromes we identify, and importantly, continued deterioration in market internals. In my estimation, and from any extensive evaluation of financial history, the delay of negative consequences has not eliminated them, but has instead made the likely eventual outcomes worse.

 DYI 

Pros and Cons: 30-Year Mortgage vs. 15-Year Mortgage

The

Debt Free

Lifestyle 

Who thought 30-year mortgages were a good thing?

As late as the 1920's, someone taking out a mortgage to buy a house in the U.S. would most likely get a short-term balloon mortgage. Typical terms: 50 percent down, and five years to pay off the other 50 percent. At the end of the five years, it was common to re-finance into another five-year loan.

DYI Quick Comment:  Mortgages work very well under those guidelines as purchasers of properties became debt free within five to ten years.  With 50% down the mortgage owner had plenty of “skin in the game” lowering SIGNIFICANTLY the possibility of default protecting the bank.   

Then came the Great Depression. Many banks failed, and surviving banks didn't want to refinance these balloon mortgages. Banks foreclosed. Between 1931 and 1935, a quarter million people lost their homes each year.

DYI:  The great depression was caused by reckless policies of the newly minted Federal Reserve – a bank created in 1913 with zero reserves and is privately owned to this day.     

President Franklin D. Roosevelt stepped in, explaining why the government shouldn't just sit by: "Even before I was inaugurated, I came to the conclusion that such a policy was too much to ask the American people to bear. It involved not only a further loss of homes, farms, savings and wages, but also a loss of spiritual values -- the loss of that sense of security for the present and the future so necessary to the peace and contentment of the individual and of his family." 

To stabilize the economy, Roosevelt created federal agencies that form the basis of the housing market the United States has today. They provided mortgage insurance, established a secondary market for mortgage loans, and converted 1 million loans into long-term mortgages.

The maximum length of a mortgage was extended to 30 years in the 1940's, making home ownership even more affordable -- and stimulating the housing market. Today, Roosevelt's economic fix not only is still with us, it's the norm. In the first half of this year, the 30-year fixed-rate mortgage accounted for nearly 90 percent of new mortgages.

 DYI:  Instead of curing the disease by eliminating the cause – our central bank – Roosevelt chose to treat the symptoms through government management of private markets (fascism) by the creation of 30 year mortgages and government/private institutions (socialism).  In the end this became nothing more than a gift to the bankers who would enjoy charging interest for 30 years as opposed to 5 or 10 years maximum.  Also as our transportation system freeways and secondary roads improved families would move more often seeking better employment.  This would occur on average every 7 years, with 30 year mortgages being the norm very little principal being paid.  So….the clock starts all over again with another 30 year debt almost guaranteeing a lifetime of interest payments.  

Pros and Cons: 30-Year Mortgage vs. 15-Year Mortgage

Crunching the numbersLet’s say that a 30-year-old borrower is buying a house for $160,000, and her marginal tax rate is 25 percent. At the time this article was written, 30-year loans were at 5 percent and 15-year loans were at 4.5 percent. 

Using Calculators4Mortgages’ amortization schedule calculator, we’ll compare the two mortgage terms by plugging in the mortgage amount and the 15- and 30-year interest rate.

• A 30-year term would give a monthly payment of $859 (payment does not include taxes and insurance, which vary by locale). The borrower would pay $149,211 in interest, and $309,211 over the life of the loan.

• A 15-year term would give a monthly payment of $1224. She’d pay $60,318 in interest, and $220,318 over the life of the loan.

How do you feel about debt? What is your tolerance for risk?

Many people are strongly averse to debt of any kind — and with good reason. Dave Ramsey is firmly in this camp, saying: 

"Don’t borrow money. Period. If I can’t get you to postpone the purchase that long, I strongly suggest you save a down payment of 20 percent or more, choose a 15-year (or less) fixed-rate mortgage, and limit your monthly payment to 25 percent or less of your monthly take-home pay."

Here's How Many Americans Are Living Paycheck To Paycheck (Hint: It's A Lot)

More than three-quarters of workers (78 percent) are living paycheck-to-paycheck to make ends meet — up from 75 percent last year and a trait more common in women than men — 81 vs. 75 percent, according to new CareerBuilder research. Thirty-eight percent of employees said they sometimes live paycheck-to-paycheck, 17 percent said they usually do and 23 percent said they always do. Having a higher salary doesn't necessarily mean money woes are behind you, with nearly one in 10 workers making $100,000 or more (9 percent) saying they usually or always live paycheck-to-paycheck and 59 percent in that income bracket in debt. Twenty-eight percent of workers making $50,000-$99,999 usually or always live paycheck to paycheck, 70 percent are in debt; and 51 percent of those making less than $50,000 usually or always live paycheck to paycheck to make ends meet, 73 percent are in debt.

 DYI:  DYI is firmly in the Dave Ramsey debt adverse camp.  America is a debt trifecta of expensive homes, expensive cars, along with a large dose of student loans strangulating our everyday citizens budget.  When emergencies arrive there is no savings resorting to credit cards once credit is maxed out bankruptcy is all that remains along with a bevy of failed marriages.  The solution is simple purchase a house no greater than 2x your yearly income - $50,000 income equals $100,000 house – reducing costs in line with your income.  Purchase used cars or modest new cars when ever possible with cash.  And stay as far away from student debt as possible.  This will drop off the need for short term debt (credit cards) tremendously so much so within a few years you will be debt free including the house.  Leaving plenty of money for savings and investment and FUN!

Cheers!

DYI

Disclaimer

Bubble

News

Opinion: U.S. stock valuations haven’t been this extreme since 1929 and 2000

Here’s how the authors put it: “A decision to allocate to a passive S&P 500 index is to say that you are ignoring what we believe is the most important determinant of long-term returns: valuation. At this point, you are no longer entitled to refer to yourself as an investor. You may call yourself a speculator, but not an investor. 

“Going passive eliminates the ability of an active investor to underweight the most egregiously overpriced securities in the index (we obviously prefer a valuation-based approach for stock selection as well). When faced with the third most expensive US equity market of all time, maintaining a normal weight in a passive index seems to us to be a decision that will likely be very costly. Yet despite this, it remains a popular path, with around 30% of all assets in the U.S. equity market in the hands of passive indexers.”

Basically, GMO thinks that U.S. stocks over the coming seven years will lose 6% due to P/E multiple contraction, and another 2.8% from margin contraction. 

While dividend yield and profit gains will contribute 5% to stock returns,, that still amounts to a real total return of -3.9% for the period.

 DYI:

Valuation insanity continues to prevail I want to point out a possible strategy – this is NOT investment advice, simply educational info for you to digest – of moving to a short position equal to the only undervalued industry precious metals mining companies. Please note markets can and have in the past remained irrational far longer than a short position can preserve its principal.  Just thought I’d pass that on.

DYI

Disclaimer

This blog site is not a registered financial advisor, broker or securities dealer and The Dividend Yield Investor is not responsible for what you do with your money.

This site strives for the highest standards of accuracy; however ERRORS AND OMISSIONS ARE ACCEPTED!

The Dividend Yield Investor is a blog site for entertainment and educational purposes ONLY.

The Dividend Yield Investor shall not be held liable for any loss and/or damages from the information herein.

Use this site at your own risk.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

Dogs

Chasing Cars

Norway Government Forces Sovereign Wealth Fund To Buy $100 Billion More In Stocks "To Safeguard The Country's Riches"

As we reported late last year, the Norwegian government ordered its Sovereign Wealth Fund to increase its equity allocation to 70% to try and paper over what’s expected to be a 70 billion kroner ($11.1 billion) drawdown – the first in the fund’s history. 

That money was needed to plug a budget hole created by falling oil prices, and it seems the brilliant minds at the Norwegian Ministry of Finance and the Norges Bank figured they could easily recoup the fund's losses by upping its risk exposure. Indeed, they’ve already raised the fund’s expected average annual real return to 2.5 percent over 10 years and to 3.5 percent over 30 years, compared with 2.1 percent and 2.6 percent previously.

According to data cited by Bloomberg, the fund held 65.1 percent in stocks, 32.4 percent in bonds and 2.5 percent in properties during the second quarter. Its mandate is now to keep about 70 percent in stocks, 30 percent in bonds, with about 7 percent in real estate that’s now separate from the main portfolio. 

 DYI:

Norwegian politicians will be in for a rude shock when global markets are down 55% to 70% from peak to trough.  Of course they will move into high gear denial game that they actually mandated this course of action.  The U.S. market is in valuation stratosphere pushing our model portfolio to an allocated position of zero percentage for stocks. 

 Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 8/1/17

Active Allocation Bands (excluding cash) 0% to 60%

76% - Cash -Short Term Bond Index - VBIRX

22% -Gold- Precious Metals & Mining - VGPMX

 2% -Lt. Bonds- Long Term Bond Index - VBLTX

 0% -Stocks- Total Stock Market Index - VTSAX

[See Disclaimer]

Stocks have a long way to fall before valuations completely mean invert from secular overvaluation to secular undervaluation.  Stocks as shown below based on sentiment are “on top of the mountain” with no other direction to go but down no matter what interest rate policies the Feds decide.  What is really happening in Norway is nothing more than past performance chasing – just as dogs chase cars – by their politicians.  With valuations at this level (U.S. market) on a nominal basis stocks bought or held for the next 10 years will be lucky to break even which is a 0% average annual return.

Market Sentiment

Smart Money buys aggressively!
Capitulation
Despondency
Max-Pessimism *Market Bottoms* Short Term Bonds
Depression MMF
Hope Gold
Relief *Market returns to Mean* 

Smart Money buys the Dips!
Optimism
Media Attention
Enthusiasm

Smart Money - Sells the Rallies!
Thrill
Greed
Delusional
Max-Optimism *Market Tops* U.S. Stocks
Denial of Problem Long Term Bonds
Anxiety
Fear
Desperation

Smart Money Buys Aggressively!
Capitulation

So….Hold onto your hats and your cash better values are ahead.

THE GREAT WAIT CONTINUES……

DYI

Communist

Update

Progressives prepare to serve Bernie Sanders Petition to Start New Party

DYI:

Old Bernie Sanders doesn't need to start a new party as one already exists and it called the Socialist Party USA.  All a bunch of happy talk as government takes on a greater and larger role in everyone’s life until you run out of taxpayers in the ever diminishing private sector.  So Bernie we need a favor go back to Vermont and retire to leave us freedom loving citizens alone.

DYI

Socialist’s

Stoolpigeons

Could Puerto Rico Be the Next Hot Tax Haven?

Some 65,000 Puerto Ricans left their bankrupt U.S. island commonwealth last year. A group of private bankers are moving the other way. They’re increasingly opening offshore banks known as International Financial Entities, which were created by a Puerto Rican law in 2012. There are 44 IFEs now, with 18 opening in the past year, according to data compiled by the U.S. territory’s financial regulator. “Just in the last six months, we’ve probably closed seven deals for international banks,” says Ryan Christiansen, president of Christiansen Commercial Real Estate, a brokerage based in Puerto Rico that leases office space. 

Tax experts attribute at least part of the influx to a little-known loophole made possible by the IFE structure. 

It lets non-U.S. account holders put money in Puerto Rico anonymously and potentially avoid taxes at home even as they benefit from the stability and safety of the U.S. 

That’s become increasingly attractive because of a new global financial-disclosure system taking effect in September.  

Under the Common Reporting Standard, more than 100 countries have agreed to automatically provide to one another annual reports about accounts belonging to people subject to taxes in each member nation. 

Previously, they mainly shared information on request, making it harder to identify suspect accounts. Much like the U.S.’s Foreign Account Tax Compliance Act, which requires foreign banks to report on Americans with accounts, the CRS initiative is meant to combat the use of offshore bank accounts to evade taxes.

DYI:

100 high tax socialist countries – and the good old US of A is socialist as well – are so desperate for tax revenues they have to resort to nothing more than a stoolpigeon law in order to snitch on their fellow citizens.  The real problem with socialism as it grows in size providing the carrying cost in many cases from cradle to grave you begin to run out of other people’s money to tax.  That is when draconian laws such as the Common Reporting Standard are put into place.  The solution is to “dial down” the level of government programs eliminating the need for punitive laws.  America’s founding Fathers in the Declaration of Independence shouted to the roof top “Life, Liberty and the Pursuit of Happiness!”  Happiness was clearly – well known through their writings – the pursuit of private property.  If every time you turn around the taxman has his hand out your property is reduced until by default your wealth is no longer private but converted to state ownership.

DYI

U.N.

Socialist

Update

UN Boss Urges Schools to Promote Wealth Redistribution

&

 Control

In an interview with an arm of the official United Nations propaganda machine, UN General Assembly President Peter Thomson said he is working with governments worldwide to indoctrinate children into supporting the totalitarian “Agenda 2030” produced by the dictators club. Indeed, the school curricula in every country must incorporate the UN's so-called “Sustainable Development Goals,” or SDGs, he explained.  

For those who are still unfamiliar with the totalitarian UN “Agenda 2030,” it's essentially a recipe for global socialism and technocracy. It calls for international wealth redistribution, total government control over economic production, indoctrination of children, and more. The scheme vows to “transform our world” and “leave no one behind.” Top UN leaders call it the “Declaration of Interdependence.” 

The UN has made it crystal clear that it intends to hijack education to indoctrinate children around the world into globalism, statism, socialism, pseudo-environmentalism, and other fringe ideologies. The American people must make it equally clear that they will never submit.

 Make America Great

9

Sisters

Of

Institutional Change

1.)     End the Federal Reserve

2.)     Repeal 17th Amendment – Reinstate Federal Senators chosen by State Legislators.

1. Term Limits – Constitutional Amendment

A. Two six year terms for Senators

B. Three terms House of Representatives

3.)     Repeal 16th Amendment – Income tax replace with value added tax.

4.)     Pass the Balanced Budget Amendment

5.)     Exit the United Nations

6.)     Reign in the Medical Industrial Complex

a. Enforce Anti-Trust Laws

b. Pass Legislation for re-importation of ethical drugs

7.)     End Federal and Private Student Loans

8.)     Trust Bust Monopolies

9.)     Reduce & Decentralize the Federal Government

DYI:

United Nations also known as (A.KA.) the dictator club; using socialism as a method to scam countries out of billions of dollars by bilking their respective taxpaying citizens for worthless but high minded sounding programs all to the dictators benefit.  A skimming operation on a world wide basis; a criminals’ dream and nightmare for honest citizens placed under authoritative rule.

From the very beginning the U.N. was designed for a one world government as a benefit for the elites its selling point after the devastation of WWII as a vehicle to end future bloodshed.  This worthless organization has fostered just the opposite as a meeting place for some form of legitimacy advancing military operations all to the benefit of the world wide military industrial complex.

As an American the time has long since arrived to exit the U.N. kick the remaining so called dignitaries out of New York City and turn the massive building complex into a multi-use facility.  Its time for Americans to kick the dictators out of town; advancing our security as a sovereign nation.

 DYI

P.S.  notice how agenda 2030 number 13 is named climate action.  Now that global cooling during the 1970’s was a bust, then moved onto global warming, then climate change – now its climate action these people never cease to amaze.

Bubble

News

August 21, 2017

Imaginary Growth Assumptions and the Steep Adjustment Ahead

John P. Hussman, Ph.D.

Indeed, our estimates of likely 12-year S&P 500 nominal total returns have fallen to just 0.3% annually, with an expected interim loss on the order of -63%. 

 At present, given that every decile is more than double its own norm, there is not a single decile of S&P 500 stocks for which we expect losses of less than -54% over the completion of the current market cycle. 

For stocks in the richest deciles, our median loss expectation approaches -70%.

 *******

World Markets Update

DYI

Should Social Security be means Tested?

It already is!

Percent of Salary Replaced by Social Security Retirement Benefits

As you can see from the graph there are huge differences in the percent of your salary that Social Security replaces, depending upon your salary. At the low end of the scale, for salaries below $10,000, retirees receive about 78% of their eligible salary. That appears to be the maximum salary replacement level. 

At the high end, the maximum Social Security retirement income is a little over $27,000 a year. And, it's the same for everyone earning over $115,000/year. For those earning exactly $115,000, the max Social Security check replaces 24% of their salary. Since the maximum payment is fixed, the percent replaced declines steadily from that point forward. For those earning $250,000 the replacement rate is about 11%; for those earning $500,000 (not shown on the chart) the replacement rate is 5%.  There is no minimum salary replacement level.

 12 Million to Pay More Social Security Tax in 2017

Amid all the chatter about tax cuts the incoming Republican administration is expected to shepherd through a Republican Congress, it's easy to lose sight of a tax increase. Social Security payroll tax is set to rise for some workers due to a 7.3% increase in the maximum taxable earnings cutoff from $118,500 to $127,200.

 DYI:

This is what policy wonks call bending the curve down as Congress increases the capture rate – fancy wording for tax increases – far greater than increases in benefits.  This is to” kick the can down the road” a few more years before massive Social Security deficits occur forcing this agency to do the unthinkable; reducing benefits to place the program back into balance between revenues and benefits paid.  Anticipate as time rolls on additional “kicking of the can down the road” to postpone the final day of reckoning when this program can no longer stand alone needing support from income taxes or a national value added tax placed on consumption.  Isn’t socialism grand!?  I’m being sarcastic.  The past Prime Minister of England Margaret Thatcher so ably stated: “The problem with socialism is that you eventually run out of other people's money.”  

 DYI