Are We Adding More People to the Homeless Population?

by on October 11, 2010 · 22 comments

in Civil Rights, Culture, Economy, Election, The Widder Curry

costs graphI noticed today, on my way out of Ocean Beach, that the ARCO station has, once again, raised the cost of gasoline over last weeks price. I noticed today, while shopping at Ralphs, the cost of meat has gone up over what it was last week.

I noticed today, while paying for my medications, that the cost has gone up since the last time I had the same prescription filled. I noticed today, while shopping at Henry’s, the cost of fruit and veggies have gone up since last week.

I noticed today, and yesterday, and the day before, while reading the newspaper, that the “fat cats” are still getting huge pensions and are still able to keep their life style the same as it was two years ago.

I noticed on television, while trying not to listen to the paid commercials of the politicians, that Meg Whitman purchased a very expensive yacht; airplanes, etc.

I noticed, again while watching television, that we probably are going to get a new Charger Stadium – bigger, I presume, than the one that we currently have that can’t be filled; that will always have the local games blacked out because tickets will cost more, and there will not be sellout crowds. And, although the Mayor has said that there would not be a new stadium built until the community voted on it, the new stadium will be tied into rehabilitation monies for the downtown area and it will be a “done deal.”

I think that we are adding to the population of the homeless people, particularly here in San Diego. Why?

san diego scene at bayI noticed today, while watching the national news, that, for the second year in a row, recipients of Social Security will not be receiving a cost of living raise. So, in spite of all necessities of life costing more, we, the “old” people of San Diego – and the nation, for that matter, will have even less income to spend; our recreational activities, albeit watching the Chargers on television, will be significantly curtailed and any viable income will be spent just in trying to “get by.”

What is it about our legislative bodies that fail to see what role the elderly have played in the making of the nation? One does not have to have many brains to figure out if all of the necessities of life are costing more and Social Security payments remain the same, a new burden will placed on those financial establishments that have to care for the elderly. And who pays for those new costs?

Baby Boomers – your time is approaching rapidly. What are you going to do for monies? Those of us that had money in 401K accounts had tried to plan for the future but even that was a bust through no fault of out own. Boredom, and hunger, are a terrible way to die.

{ 22 comments… read them below or add one }

avatar RB October 11, 2010 at 1:24 pm

So who are you going to believe on inflation? The government or your lying eyes?

Often the government plays with the data. Many times they exclude food and energy from their calculations of inflation. Most current inflation or price increases are coming from a decline in the value of the dollar not increase demand for the products.

As for your 401K or long term money, stick with stock funds and avoid bond funds. Stock fund in Asia, Latin America, China and other emerging markets are doing particularly well. The economies in these countries are growing at 5-7% and you also get a good currency return too, as the US fed decrease the value of the dollar. The dollar won’t really switch direction until the Fed starts raising interest rates (not any time soon or not until the unemployment rate comes down).

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avatar judi October 11, 2010 at 2:10 pm

So, RB, where were you when I was making the decision of what 401K plan to join; how much to put in monthly; and should I take my money out now – or later?

I realize the older I get the worse my eyes are getting. But can they really be that bad to think I might believe the government over what I am seeing?

It is still going to be my dollar that will take me to the market, the pharmacy, the Charger Game (?) and it will still be that dollar that doesn’t allow me a choice of how to spend it.

Thank you for the advice re: the stock funds. Maybe it isn’t too late.

And…thank you for your response. Judi

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avatar Ian October 11, 2010 at 2:17 pm

What ever you do, the last thing you want to buy now is stocks. We are facing a huge deflationary environment, and if you buy now you will be buying near the peak.

Bonds and cash are the best bet for the medium term (1-3 years). Protect your money now, or suffer a similar fate as 2007-2009.

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avatar judi October 11, 2010 at 2:21 pm

Thank you, thank you, thank you for the advice and warning.

Judi

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avatar RB October 11, 2010 at 3:51 pm

Judi; if you don’t need the money leave it the account as long as possible. Never take it out before you age is 59 1/2 . Taking it out early means a 10% penalty as well as paying the taxes.
If you do need the money, you can take 3-4% out a year without worrying about the principle running out over a lifetime. If you look for a income stock fund, the large companies in this fund will do 30-60% of their business overseas and pay 2-3% dividends.

As for deflation scare, commodity prices would be going down not up with deflation.

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avatar judi October 11, 2010 at 3:54 pm

Ohhhhh I love you. I passed 59 1/2 many 1/2 years ago. But…my daughter just saw a financial planner yesterday and will meet again with him next week. I will send this on to her. So..again, thank you.
Judi

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avatar RB October 11, 2010 at 4:40 pm

For younger people, for people with lower current tax rates, and for those who have a longer periods before retirement, they should use a Roth Retirement account and use a stock fund in this account. In a Roth, you pay the taxes before you put the money into the account but all earnings, dividends, capital gains and interest is tax free when you remove it. If your daughter has an employer match at work, always put funds into the retirement account to get the match first but use a Roth for any money beyond the match.

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avatar judi October 11, 2010 at 4:42 pm

Great advice. I’ve forwarded your previous message to her; I’ll do this one too. Thanks, again. Judi

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avatar Ian October 11, 2010 at 7:50 pm

Commodity prices will go down, the dollar will go up, as will Treasuries. Many of the leading indicators, as well as history are indicating a bear market and deflation.

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avatar judi October 11, 2010 at 7:58 pm

I am already so “deflated” that it will take a lot to blow me up to my “regular” self. When the dollar goes up – that is good, right?
Judi

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avatar Ian October 11, 2010 at 2:08 pm

This is what you get when you vote for candidates that support government debt, deficits, and inflationary policies.

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avatar judi October 11, 2010 at 2:14 pm

Ya know, Ian, I wish I could agree with you, but it seems to me that the Republicans – those that I did not vote for – were the ones that put us where we are today. Looking at those running for office in November scare the hell out of me. After all, if it was good enough for the “Bushies” it must be good enough for them.

I’m not letting the Dem’s off the hook. Some of them lost their spines a long time ago but I have to agree with the principle premises – not the ones being expounded on now.

Judi

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avatar Ian October 11, 2010 at 2:19 pm

Ya, most of the Republicans support those policies, also. There are not a lot of good choices out there when it comes to reasonable economic policy.

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avatar judi October 11, 2010 at 2:23 pm

I have always hated having to vote for the “best of the worst.” I think, with one exception, I have always had to do that. Someday I hope I can pick a person to vote for because I believe in them!
Judi

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avatar Danny Morales October 11, 2010 at 5:42 pm

Judy- For me, it’s not about voting for a person but rather about which policies support which segment of finance capital or not. For me its about ‘People Before Profits’ and carrying a clothespin into the voting booth!

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avatar judi October 11, 2010 at 5:52 pm

But the problem, Danny, is after awhile that clothespin begins to pinch real bad. Judi

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avatar Sarah October 11, 2010 at 10:18 pm

Judi – I have to know who the exception was.

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avatar judi October 12, 2010 at 9:12 am

JFK –

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avatar Sarah October 12, 2010 at 12:32 pm

of course
:)

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avatar judi October 12, 2010 at 12:36 pm

Pretty much a no brainer, huh?
J

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avatar RB October 12, 2010 at 3:52 pm

Of course, a Democrat with a conservative fiscal policy could never get nominated today.

– John F. Kennedy, Jan. 21, 1963, annual message to the Congress: “The Economic Report Of The President”
“It is no contradiction – the most important single thing we can do to stimulate investment in today’s economy is to raise consumption by major reduction of individual income tax rates.”

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avatar judi October 12, 2010 at 5:10 pm

I don’t know, RB. If the right candidate with the right appeal said the same thing, it might work.

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