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No Social Security $$ increase until 2012; Obama double crosses his base, media smothers the story
The Collins Report ^ | August 21, 2009 | Kevin "Coach" Collins

Posted on 08/21/2009 6:07:46 AM PDT by jmaroneps37

This is another important story being smothered by the Democrat controlled media.

The Obama administration has quietly announced there will be no raise in social security payments next year and maybe not until 2012, a presidential election year.

Citing a 2008 third quarter cost of living decline, Congress has voted no cost of living increase in next year’s Social Security checks for the first time since 1973.

The Democrats are pointing to their own prediction of a “… [steady] decline in consumer prices through the first three quarters of this year…” Based on this they claim to foresee no need for raises until possibly 1212.

Democrats ignore Consumer Price Index: hide behind flat Inflation

Obama’s base will suffer the most. While 80% of our big cities voted for Obama it’s apparent the elderly, both White and minority, will be asked to “balance the budget” by themselves. There might not be any inflation but the Consumer Price Index (CPI) has risen steadily since January, and people are living by the CPI not the rate of inflation.

Numbers show ignoring the CPI will crush elderly and minorities

Using Gastonia North Carolina as a baseline for CPI, here are some comparisons with other centers where the population is White Black Hispanic elderly and overwhelmingly Obama supporters.

In each of these Urban centers Obama got more than 80% of the vote but:

Those living in New York City need 55% more to live than those in Gastonia.

In Detroit they need 12% more; in Cleveland they need 10% more; Bostonians 25% more

Chicagoans 10.7% more and Oakland Californians need 43% more than those in Gastonia

The poor in these cities receive standard payments the same as everywhere else. The combination of no raise and a rising CPI will actually kill some of them

(Excerpt) Read more at collinsreport.net ...


TOPICS: News/Current Events
KEYWORDS: bho44; elderly; seniors; socialsecurity; socialsecuritycuts
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The next COLA raise comes just in time for 2012, how nice!
1 posted on 08/21/2009 6:07:47 AM PDT by jmaroneps37
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To: jmaroneps37

But you can bet on Medicare taking more from your social security check in 2010.


2 posted on 08/21/2009 6:09:13 AM PDT by Carley (OBAMA IS A MALEVOLENT FORCE IN THE WORLD)
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To: jmaroneps37

Many, many seniors are one issue voters—that issue being their Government benefits (SS, medicare, etc). You can bet all hell will break loose when they don’t see their checks increase in Jan. Personally, I don’t have much sympathy for them—at some point we will have to tell them NO!


3 posted on 08/21/2009 6:11:32 AM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: jmaroneps37

I’m confused. If we’re in a deflationary period, why should people expect a COLA hike in Social Security?


4 posted on 08/21/2009 6:11:54 AM PDT by randita (Chains we can bereave in.)
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To: jmaroneps37
Obama’s base will suffer the most. While 80% of our big cities voted for Obama it’s apparent the elderly, both White and minority, will be asked to “balance the budget” by themselves. There might not be any inflation but the Consumer Price Index (CPI) has risen steadily since January, and people are living by the CPI not the rate of inflation. Numbers show ignoring the CPI will crush elderly and minorities

This is EXACTLY what I predicted years ago - the government would start having COLAs fail to keep pace with the rate of inflation. It amounts to reverse compounding.

Since Social Security is underfunded, the Fedgov will use an unholy trinity to bring it in-line with receipts - understate the action rate of inflation, have COLAs fail to keep up with even that artificially-low inflation rate, and then will monetize fedgov debt, which will further fuel inflation.

5 posted on 08/21/2009 6:12:16 AM PDT by dirtboy
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To: Carley

No food,No health care,your on your own Granny!


6 posted on 08/21/2009 6:12:22 AM PDT by Dr. Ursus
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To: jmaroneps37

This is just a first step.
It’s fun to trash the Baraqqis here, but the reality is that almost all of the Wash DC crowd are guilty in the Social Sec scam.
The numbers don’t work folks, no matter what you read in the AARP magazine.........


7 posted on 08/21/2009 6:12:26 AM PDT by nascarnation
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To: jmaroneps37

I thought zero’s base was the union crowd with the minimum wage issue, not the SS issue.


8 posted on 08/21/2009 6:12:33 AM PDT by Sig Sauer P220 (Forget going Galt. Its time to go Braveheart.)
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To: rbg81

True but obammy wants to turn old folks in to soilent green.


9 posted on 08/21/2009 6:12:49 AM PDT by Joe Boucher (google; operation garden spot and REX84)
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To: jmaroneps37

No increase in SS, but Congress gets a raise. How quaint.


10 posted on 08/21/2009 6:13:17 AM PDT by OCCASparky (Steely-Eyed Killer of the Deep)
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To: jmaroneps37

If the Republican party were to do this, the Dems would all shoud, “cuts, cuts.” Little, if any, media coverage on this at all.....


11 posted on 08/21/2009 6:14:22 AM PDT by choctaw man (Good ole Andrew Jackson, or You're the Reason God Made Oklahoma...)
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To: jmaroneps37

My parents are both notch babies (born between 1917 and 1923), both screwed by the last SS change and correction by Jimmy Carter.

They’re still waiting for congress to fix the problem. Congress is waiting for them to die.


12 posted on 08/21/2009 6:17:13 AM PDT by TC Rider (The United States Constitution - 1791. All Rights Reserved.)
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To: jmaroneps37
If this is true the old folks will riot.

13 posted on 08/21/2009 6:19:26 AM PDT by TSgt (I long for Norman Rockwell's America.)
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To: OCCASparky

WASHINGTON, Jan. 10 /PRNewswire-USNewswire/ — Members of Congress have
awarded themselves a 17 percent higher Cost of Living Adjustment (COLA) than
the nation’s 48 million elderly beneficiaries will receive in 2008.


14 posted on 08/21/2009 6:21:34 AM PDT by Recon Dad ( MARSOC DAD)
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To: Joe Boucher

obammy wants to turn old folks in to soilent green.


And then he wants to confiscate their assets. He needs your parents $$ more than you do. In his mind, its a win-win.


15 posted on 08/21/2009 6:21:46 AM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: jmaroneps37
The combination of no raise and a rising CPI will actually kill some of them

Yep...if this don't get you the death panel will...

16 posted on 08/21/2009 6:22:40 AM PDT by ravingnutter
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To: OCCASparky

Can’t wait to see AARP’s position on this. They can explain to their members why its good the Dems are screwing them out of their COLA. And all this time, the Conservatives were supposed to be the boogeymen....


17 posted on 08/21/2009 6:23:24 AM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: jmaroneps37
While we're on the subject of seniors...

Family told by NHS: Alzheimer's is not a 'health condition'

18 posted on 08/21/2009 6:23:48 AM PDT by mewzilla (In politics the middle way is none at all. John Adams)
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To: randita

Granted, but with that logic why should the congress get a automatic COLA increase?


19 posted on 08/21/2009 6:24:14 AM PDT by Recon Dad ( MARSOC DAD)
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To: jmaroneps37

How about the automatic COLA for congress, will it go on thru? Bet it does.


20 posted on 08/21/2009 6:24:30 AM PDT by midwyf (Wyoming Native. Environmentalism is a religion too.)
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To: jmaroneps37

To all the old a$$holes that keep voting Democrat because of Roosevelt and Kennedy, UP YOURS!!!

No healthcare and now no food! Enjoy!!!


21 posted on 08/21/2009 6:25:00 AM PDT by GOPsterinMA (Eric Cartman for president in 2012)
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To: jmaroneps37

I wonder when we’ll be treated to the images of seniors being forced to eat dog food because of Social Security “cuts”?


22 posted on 08/21/2009 6:26:35 AM PDT by The_Victor (If all I want is a warm feeling, I should just wet my pants.)
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To: dirtboy
"Obama’s base will suffer the most." ...

You mean that 67% of NON - HS grads, 18 to 39, who voted him in ????

23 posted on 08/21/2009 6:27:00 AM PDT by litehaus (A memory tooooo long)
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To: TC Rider

Your parents were not screwed. They just did not get the extra money Congress inadvertantly allocated to others before the mistake was corrected. For Congress to fix the problem, the error would have to be perpetuated.

You should talk to your parents and tell them the truth. The truth is that your parents and my parents are on the front end of an intergenerational Ponzi scheme. Your parents paid relatively little in Social Security taxes unless they worked long after retirement age. They have drawn far more from Social Security than they put in even considering the time value of money.

Our situation is just opposite. Our payroll taxes were substantially increased in the mid 1980s. Congress spent all excess payroll taxes so there are no assets to support our retirement. Even if the money had been saved, our return on Social Security taxes would be paltry. Social Security is an income transfer program providing relatively high benefits to the low wage worker and much less to the higher wage worker.


24 posted on 08/21/2009 6:34:43 AM PDT by businessprofessor
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To: rbg81

but but but....

Congressman Andre Carson (Muslim, IN) told us in his campaign tv ads he was going to make Social Security “safe for seniors”


25 posted on 08/21/2009 6:35:04 AM PDT by nascarnation
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To: jmaroneps37

Yet the confiscatory tax keeps going up and up - on everybody; not just the “rich”. BTW, how much does Congress pay into SS? Inquiring minds want to know.


26 posted on 08/21/2009 6:37:34 AM PDT by NTHockey (Rules of engagement #1: Take no prisoners)
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To: Carley

they needed the money to give Brazil for oil exploration


27 posted on 08/21/2009 6:39:27 AM PDT by cd jones (Liberals: spreading misery, calling it equality)
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To: jmaroneps37

I was in the Walmart Superstore last week and I noticed that many canned goods had price increases from 30% to 60% since my previous visit early last month.

One item of note jumped from $1.10 to $1.45. Other store brands jumped from $0.55 to $0.87.

Carter II Hyperinflation could be rearing its ugly head.


28 posted on 08/21/2009 6:39:30 AM PDT by TomGuy
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To: jmaroneps37

Besides the fact that by 2012 the pan is to have many of these retirees in the ground. Take away their retirement money that buys food. STARVE them to death. Well this is less obvious than setting up Nazi style hospitals to starve them to death.

WHY IS EVERYONE SO SHOCK BRIAN WILLIAMS LET THIS SLIP ON A NEWSCAST 2 MONTHS AGO. I POSTED IT, IN A COMMENT, BUT NO ONE PAID ANY ATTENTION. HELLLOOOO


29 posted on 08/21/2009 6:43:21 AM PDT by Marty62 (former Marty60)
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To: jmaroneps37
Imagine if President Bush had done this, the Howl and the Outcry would have been overwhelming. If True, I doubt the compromised main stream media will say hardly anything, being in Obama's pocket.
30 posted on 08/21/2009 6:43:39 AM PDT by sr4402
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To: randita

Because we greedy old folks want to get as much of the lazy young folks money before the lazy young folks all go on the government dole! That’s why! ;-)


31 posted on 08/21/2009 6:43:53 AM PDT by SubMareener (Become a monthly donor! Free FreeRepublic.com from Quarterly FReepathons!)
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To: cd jones

And I am reminded that O promised Bermuda they wouldn’t tamper with their insurance companies and banks in exchange for taking the Ouiggers.

Guess that’s why bubba and bubbette are in Bermuda.

Checking on their money.


32 posted on 08/21/2009 6:46:09 AM PDT by Carley (OBAMA IS A MALEVOLENT FORCE IN THE WORLD)
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To: TomGuy

I’ve noticed the same thing. The prices have risen on just about everything I buy there, and expect that the recent increases (last 6 months or so) will continue. This is only the beginning.


33 posted on 08/21/2009 6:51:32 AM PDT by mrmeyer ("When brute force is on the march, compromise is the red carpet." Ayn Rand)
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To: Recon Dad

This is one granny who has been surprised every year when we got the COLA. I never have thought we should be getting those. Seems like a waste of money. I have always believed that retirement funds should come out of your income while you are able to work and that it be mandatory and held in a private account that you can only access at age 65 or whenever you stop working. The government should also not be able to touch it. We should only get back what we save in. Fortunately, I am still working at age 75 and plan on keeping working as long as I’m able. Now I’ve gotta go to work.


34 posted on 08/21/2009 6:54:15 AM PDT by WVNan ( (Attack him where he is unprepared, appear where you are not expected.: Sun Tzu))
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To: randita

Does this help you understand HOW the Retirees will be affected. The value of money DECREASES but PRICES doe not.

“When the volume of money and credit rises relative to the volume of goods available – which is the definition of inflation – the relative value of each unit of money falls. This makes prices for goods generally rise. When the volume of money and credit falls relative to the volume of goods available – which is also the deflation definition – the relative value of each unit of money rises, making prices of goods generally fall. Though many people find this concept difficult, the proper way to understand these changes is that it’s the value of units of money, which rise and fall, not the value of goods.”
.........................
“the proper way to understand these changes is that it’s the value of units of money, which rise and fall, not the value of goods.”
http://www.elliottwave.com/deflation/


35 posted on 08/21/2009 6:56:20 AM PDT by Marty62 (former Marty60)
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To: rbg81
at some point we will have to tell them NO!

Why? What about the $2B BO gave Brazil?
36 posted on 08/21/2009 6:59:42 AM PDT by presently no screen name
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To: WVNan
and plan on keeping working as long as I’m able.

That was good at one time, now it's more like as long as I have a job.
37 posted on 08/21/2009 7:01:12 AM PDT by presently no screen name
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To: rbg81

At some point the Senior Citizens will have to grow up and stop demanding more, more, more. That will probably be when we are totally broke.


38 posted on 08/21/2009 7:01:20 AM PDT by Republic of Texas (Socialism Always Fails)
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To: randita

last year there was a 7 percent raise in SS checks,,I was astounded. I think the program has some kind of dependence on something, some index, for raises and it is determined by law. Seems to me if the regs say no increase, there is no increase.

But the payments for medicare are going up,,determined on income. And one if one works and gets more income, the SS check reflects that.

So seniors better works,,hahahha,,I am in that boat and hubby is working.

I do think SS checks have gotten out of whack.


39 posted on 08/21/2009 7:12:22 AM PDT by cajungirl (no)
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To: TC Rider

Yep...my Mother was born in 1917...she was always po’d about the notch baby thing. But considering she went through....depression, WWII, Korea, Vietnam,Clinton Admin etc, AND worked from the age of 12 until she was 76, I would be po too. At least she doesn’t have to go through the total destruction of the Constitution. Miss you Mom


40 posted on 08/21/2009 7:12:51 AM PDT by Marty62 (former Marty60)
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To: rbg81

Heh heh,,as a senior I agree. But most don’t. And when the seniors are told no, I suspect the big inheritances that their kids get will start to dry up as they spend down capital rather than save for the kids.

The big unspoken of issue is that the great nmiddle class is leaving money to their kids,,maybe in small amounts, fifty to a hundred grand, maybe in larger amounts. And that is going to be tapped one way or another. But make this generation mad, my generation, who has paid for school, college, wedding, cars, downpapyments for the kids houses, make us mad at your peril.

If my kids started to talk about their parents as people who live swilling at the trough after a lifetime of work and savings, I would spend down every cent of every account rather than leave them a dime.

So careful there if Aunt Mary or Mom and Dad have you in their will.


41 posted on 08/21/2009 7:15:48 AM PDT by cajungirl (no)
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To: jmaroneps37
Citing a 2008 third quarter cost of living decline, Congress has voted no cost of living increase in next year’s Social Security checks for the first time since 1973.

Congress just rubber stamps what the CPI-W formula produces. SS is on automatic pilot. This is not a conspiracy or politically controlled.

COLA Estimates

42 posted on 08/21/2009 7:16:35 AM PDT by kabar
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To: jmaroneps37
Citing a 2008 third quarter cost of living decline, Congress has voted no cost of living increase in next year’s Social Security checks for the first time since 1973.

Congress just rubber stamps what the CPI-W formula produces. SS is on automatic pilot. This is not a conspiracy or politically controlled.

COLA Estimates

43 posted on 08/21/2009 7:16:41 AM PDT by kabar
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To: dirtboy
Since Social Security is underfunded, the Fedgov will use an unholy trinity to bring it in-line with receipts - understate the action rate of inflation, have COLAs fail to keep up with even that artificially-low inflation rate, and then will monetize fedgov debt, which will further fuel inflation.

That is not the way it works. Latest Cost-of-Living Adjustment

The problem is that SS increases (and Medicare Part A) are not tied to revenue. They are not linked, which is why SS is unsustainable and will start going into the red by 2016 or earlier.

44 posted on 08/21/2009 7:22:08 AM PDT by kabar
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To: Carley

That is Medicare part B, which is tied to revenue and costs, unlike SS and Medicare Part A.


45 posted on 08/21/2009 7:22:54 AM PDT by kabar
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To: jmaroneps37
SS COLAs are based on the change in CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) from the third quarter in the prior year to the third quarter in the current year. The calculation time was right in last year's energy price spike, so they got a honking big 5.8% COLA at the beginning of this year (SS COLA FAQ, COLA History). The CPI-U (Consumer Price Index for All Urban Consumers) has dropped in the last year (July to July) by about 2% and the CPI-W was similar, but I don't have a link to a nice table on it. My inflation adjusted bonds have dropped to a 0% return this half year because of that.

CPI-U from 1913-2009

(sorry for the ugly table, but I couldn't format it nicely)

Year Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Avg. % change Dec-Dec % change Avg-Avg

2006 198.3 198.7 199.8 201.5 202.5 202.9 203.5 203.9 202.9 201.8 201.5 201.8 201.6 2.5 3.2
2007 202.416 203.499 205.352 206.686 207.949 208.352 208.299 207.917 208.490 208.936 210.177 210.036 207.342 4.1 2.8
2008 211.080 211.693 213.528 214.823 216.632 218.815 219.964 219.086 218.783 216.573 212.425 210.228 215.303 0.1 3.8
2009 211.143 212.193 212.709 213.240 213.856 215.693 215.351

46 posted on 08/21/2009 7:27:06 AM PDT by KarlInOhio ("I can run wild for six months ...after that, I have no expectation of success" - Admiral Obama-moto)
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To: kabar

You’re missing the key point - the Obama Admin doesn’t even want COLAs over the next two years. So the calculation you linked to becomes moot.


47 posted on 08/21/2009 7:27:11 AM PDT by dirtboy
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To: jmaroneps37

PLUS,the first 8750 of taxable income is taxed at 10% now, if they abolish it and put it back in the 15% bracket the person with 8750 in income will be treated to a 50% INCREASE in his taxes. That oughta keep him frosted for awhile.


48 posted on 08/21/2009 7:28:31 AM PDT by Waco (OK Libs, stop emiting now.)
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To: Marty62

Could you post it again?


49 posted on 08/21/2009 7:28:50 AM PDT by Maverick68 (w)
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To: All

This should be expected. Any increases tied to COLA will be minimal as we head into a deflationary time.

My father was suprised to see an increase this year and felt it was not necessary.

The problem is that too many people are dependent on SS as their ONLY source of income, expecting the government to cover their lack of planning for retirement. SS should be used as a supplement to retirement planning, not the foundation.


50 posted on 08/21/2009 7:32:16 AM PDT by Maryland Man (NOW is the time for conservatives to rise up!!)
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