American Retirement Plans

[Michael74]

Not necessarily. Increasing stock prices, dividends, bond prices, CD interest rates are all caused, in part, by inflation.

Completely useless if it doesn't buy as much as it did. Its just an illusion. As in the case of Jason's trust fund.

 

[Michael74]

Bankers don't...

Who pockets the interest on those loans, not to mention repayment of principal?

 

[jasonc]

Yes, in a desperate attempt to compensate for bankers confiscating purchasing power from city revenue.

Uhm no,they don't waste money? Roads not needed,high priced political favors ,money for sports that have no tax payer benefit to the public.

The wars we fought in,all of them weren't won on the Gold standard. Nor did the average person then own gold.I have historical homes that remain here from fortunes gained abd lost.plenty of business will fail and that's my point a dB is promise that the company can't make its not always going to be around.my grandparents,failed alot. Yet did survive

 

[jasonc]

Completely useless if it doesn't buy as much as it did. Its just an illusion. As in the case of Jason's trust fund.

A few million,if I can't make on that I'm stupid.it disburses to us all more then I make monthly aND still gains money. So tell me how my pension was better?

 

[civilwarbuff]

Jason, take the case of your trust fund. You say it has gone up 400% since 1973. Since 1973 the CPI has gone up 451.3% This means your trust fund lost ground to inflation. It doesn't buy as much today as it did in 1973.

1320.48% would be the rate of return from a S&P 500 mutual or index fund since 1973. My guess is Jasons trust fund in invested in income producing stocks (conservative) at the expense of growth stocks....typical for trust funds especially as a person gets older.

 

[jasonc]

Jason, take the case of your trust fund. You say it has gone up 400% since 1973. Since 1973 the CPI has gone up 451.3% This means your trust fund lost ground to inflation. It doesn't buy as much today as it did in 1973.

Your only.looking at that not the cash it gives. So a home built in 1910 which if I own Shoukd be low cost abd exempt from.govt codes unlike a new house?.oh wait bringing up old structures to new code isn't cheap.I have seen structures using old plumbing, asbestos ,aND 100 year old electrical wiring .380 instead of 240.if I sell that I shouldn't expect a greater return then when I bought it? Those are not something I want to own, cost prohibitive.nor would I rent one.High utility bills

 

[civilwarbuff]

Who pockets the interest on those loans, not to mention repayment of principal?

As well as people who work there, companies that supply the bank with goods and services and shareholders......kinda gets spread around.

 

[Michael74]

Uhm no,they don't waste money?

Of course there are inefficiencies, and that should also be addressed. However, there were also inefficiencies years ago. The only difference is bankers have had years to confiscate city revenue.

...a dB is promise that the company can't make its not always going to be around...

Yes, that's true. However, if the pension plan is fully funded, it can still payout pensions regardless of the company's status. The PBGC takes over the pension plan, and makes payments.

 

[Michael74]

As well as people who work there, companies that supply the bank with goods and services and shareholders......kinda gets spread around.

Its still confiscation from the elderly, to put in those spread around pockets.

 

[Michael74]

Your only.looking at that not the cash it gives.

You said it was only paying out for the recent few years. In any case, with a gold standard, you would still get the cash plus your fund would buy more today than it did back then.

 

[Michael74]

1320.48% would be the rate of return from a S&P 500 mutual or index fund since 1973.

The S&P would have improved purchasing power with a gold standard. Companies improve due to the hard work of capitalists and their workers, not inflation. The inflation portion of S&P price is useless, since investors can't buy anything with it.

My guess is Jasons trust fund in invested in income producing stocks (conservative) at the expense of growth stocks....typical for trust funds especially as a person gets older.

Exactly, inflation confiscates stuff from the elderly.

 

[civilwarbuff]

Its still confiscation from the elderly, to put in those spread around pockets.

Would you include yourself in those being confiscated from?

 

[Michael74]

Would you include yourself in those being confiscated from?

I would include 90% of Americans. Most Americans are either elderly or future elderly. Almost everyone with a 401K , IRA, or pension plan is being confiscated from. A few super brains can figure out how to stay ahead of the bank's terrible inflation, but the majority has no idea how to do this. Bankers take advantage of the majority's inability to stay even with inflation by fleecing the majority.

Note that back in the 70s, companies started offering COLA to their employees. Bankers realized that this would prevent them from confiscating goods from the majority, so they trimmed inflation back to the 2% range. Companies don't generally offer COLA with 2% inflation, which lets bankers confiscate worker paychecks and pensions. Inflation is only efficient at confiscation if the majority can't protect themselves from it.

 

[civilwarbuff]

OK, whatever dude......LOL

 

[Michael74]

oh wait bringing up old structures to new code isn't cheap...

If you improve houses, you will benefit. You don't need inflation for that, just improvements.

 

[Michael74]

OK, whatever dude..

I guess we will just have to agree to amicably disagree. Have a nice day.

 

[jasonc]

If you improve houses, you will benefit. You don't need inflation for that, just improvements.

It's also must be recouped.an improved home Sells.it's also going to cause inflation as home prices increase so does yours.my mom could sell her home as much as my smaller home easily but she bought her for a third of the price.

 

[jasonc]

You said it was only paying out for the recent few years. In any case, with a gold standard, you would still get the cash plus your fund would buy more today than it did back then.

Gold wouldn't be available nor does it gain.I buy gold for stability in sour times not fir investment it's a commodity

 

[jasonc]

Of course there are inefficiencies, and that should also be addressed. However, there were also inefficiencies years ago. The only difference is bankers have had years to confiscate city revenue.



Yes, that's true. However, if the pension plan is fully funded, it can still payout pensions regardless of the company's status. The PBGC takes over the pension plan, and makes payments.

Pensions Have never been fully funded.dB usually dnot have inflation increases built into them.

 

[Michael74]

It's also must be recouped.an improved home Sells.it's also going to cause inflation as home prices increase so does yours.my mom could sell her home as much as my smaller home easily but she bought her for a third of the price.

If the price is because of an improvement, that's not inflation. Inflation is paying more for the same unimproved house, even though it is years older. There are exceptions, but nationally the average home only lasts for about 75 years.