Is Social Security a Good Deal or Not?

Is Social Security a good deal? Many Americans worry that they will put more money into the system via payroll taxes during their working years than they will ever get back in benefits — and their concerns help fuel the ongoing push by Republicans to transform Social Security into a privatized system of personal accounts.

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Mitt Romney has supported privatization in the past (see his book, "No Apology"), and running mate Paul Ryan argued for it as recently as last week's vice presidential debate: "Let younger Americans have a voluntary choice of making their money work faster for them within the Social Security system."

Could workers make their money grow more quickly with personal accounts? The actuaries at the Social Security Administration (SSA) ran an analysis recently that simulated real (after inflation) annual rates of return on payroll tax contributions for beneficiaries who were born between 1920 and 2004.

It showed that some workers might beat Social Security's returns in some years if they took risks in the stock market. But over a lifetime, Social Security's consistent, risk-free and inflation-adjusted returns would be very tough to beat.

 

Read the rest of the CNBC article here.

CNBC.com Article: Marc Faber: Market Setting Up for ‘Serious Setback’

Global markets have been weakening technically and are poised to head sharply downward, “Gloom, Boom & Doom Report” editor Marc Faber said Tuesday on CNBC.

On “Fast Money,” he stood by his call that stocks would fall 20 percent.

“Basically, I think QE3, which I think is unlimited, and bond purchases by the ECB bailout of countries have been largely discounted by the market, and the markets have been weaking technically, so I believe that we may have here quite a serious setback,” he said.

Faber discounted the role of government intervention as a way to improve economic conditions.

(Read More: Marc Faber: Stocks Will Fall; Jim Rogers: China to Rise)

“We need less policies, not more policies,” he said.

“I would love to see everywhere in the world, certainly in the Western world, government expenditures and government bureaucrats cut by minimum 50 percent,” he added. “That would turn me very bullish.”

Pressed for a place to put his money, Faber looked to Asia.

 

Read more of this story here.

 

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Spiking the Monetary Punch Bowl

October 5, 2012

How Helicopter Ben Helps Jobs and, Inadvertently, Gold

By Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors

The world’s central bank leaders continue to spike the monetary punch bowl, with investors imbibing on gold once again. This flurry of gold buying prompts many curious investors and doubting media to ask me two questions: 1) How can demand for gold and gold stocks continue; and 2) How high can the precious metal go?
To answer these questions, we need to look at the intentions behind the economic and political decision-making across several developed countries, analyze the causes, the effects, and the possible ramifications.
For example, one of the most debated topics today is America’s ongoing unemployment situation. Job loss has affected the lives and pocketbooks of millions of Americans and our friends and families, culminating to a center-stage position in the election this year. All eyes turn to President Barack Obama and Mitt Romney to explain how each intends to create jobs.

Read More of this U.S. Global Investors Article.

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