How did that work out? Instead of growing these funds, the government raided them continuously over decades. Congress stole the money for other programs and spending binges, replacing the funds with IOUs instead – and then continued to say the money was there! No wonder they’re saying today that trillions of dollars of new spending is at the same time “free!” The insanity has no limit, the politicians no shame.

Anyway, since the government is never going to stop taxing us for these entitlements, there will always be revenue. It just won’t be enough.

Once the Medicare trust fund is nothing but vapor in an empty tank, the government will only be able to collect 83 cents for every dollar of Medicare entitlements it must pay. So, what does that mean? It probably means that doctors’ offices suddenly receiving a 20% haircut on their services will reconsider taking Medicare payments or patients. Will that affect you?

Let’s think it through a little more. If Medicare’s trust fund goes bankrupt, could there be a similar crisis with other government programs? Sure. There already is.

The same government that has promised us… scratch that… OWES us Medicare, since WE have paid for it – also owes us Social Security, government pensions, military pensions, and more. It turns out the Social Security trust fund is scheduled to be depleted by 2034, at which time it will have the ability to pay only 76% of its obligations. The Highway Trust Fund will be depleted this year. And the Unemployment Trust Fund ran out of money last year! The Treasury simply printed more monopoly money to fund the gap, charging it to the future (our future selves, kids and grandkids).

Aren’t all government entitlements at risk? Won’t the government have to choose between paying Peter and paying Paul? Unfortunately, the government isn’t worrying one bit about Peter or Paul.

The $1.5 to $5 trillion being debated is for NEW spending.

It’s for climate change, free community college, universal basic income and the like. What a relief, at least, that this new spending doesn’t cost anything!

Don’t get me wrong. Both parties have created this situation, and neither party has had the resolve, leadership, courage, or desire to do anything about it.

The real question is, are you OK with this?

Is your plan to keep shoveling money into the stock market via a 401(k), expecting the balance to grow sufficiently to overcome rising health care costs, your social insecurity, the inevitable tax increases, market crashes that occur every 7 to 10 years, and every other unpredictable Black Swan event?

Or would you like to create your own pension and your own health care plan, that isn’t run and can’t be ruined by the Government?

If you’d like to take control over your financial future, contact us.

Truthinaccounting.org See the financial condition of the country, your state, or your city

The Outlook for Major Federal Trust Funds: 2020 to 2030 (this doesn’t factor in Covid-19!)

The Coming Crisis For The Medicare Trust Fund (this doesn’t factor in Covid-19!)

Why America Is Going Broke (before Covid-19!) (requires Wall St Journal subscription)

Is Our Country's Fiscal Condition Past the Point of No Return? (Podcast)

Medicare is Going Broke – October 2021 (Pdf Download)

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Disclaimer: This newsletter represents the opinion of Arieff Consulting, Inc, and does not constitute financial, tax, or legal advice.