Market Watch

[Gator6x4]

Until we as a Nation get the Safety Net Social Programs under control by Congress enacting a Law that states, United States Safety Net Programs are for AMERICAN CITIZENS ONLY. The border crisis will continue growing and the US Deficit will continue to grow.

I have a friend who is a retired Marine Staff Sergeant. He recently in a conservation told me a illegal who just appeared in America was better off Financially/ Medically etc than him.

He advised the Reagan signed law on "Double Dipping" or Pension Offset got him when he retired.

"If two-thirds of your government pension is more than your Social Security benefit, your benefit could be reduced to zero. If you take your government pension annuity in a lump sum, Social Security will calculate the reduction as if you chose to get monthly benefit payments from your government work."

He advised he does not receive SS even though he worked for many years and paid into SS after leaving, retiring from the Military.

He advised his health care was provided through the VA. His wife has Medicare and a supplement.

He advised an illegal just arriving could sign up for SSI and receive $914 for an individual and $1,371 for a couple. He would also be eligible for Residential Rental, Electrical, Utility Subsidies (Water -Sewer), Medicaid, Snap (Food Stamps) and a free Cell Phone.

He said damn the wall. Cut off the Social Programs to illegals and a Wall Would not be needed because the free loaders would stop coming.

 

[ultrarunner]

The rational of spending often escapes me...

What I have seen is a group that wants something will often use various approaches... ballot, courts or mandate from a higher governing body.

I see this in city and county operations saying their hands are tied... this spending is mandated and often mandated spending consumes the entire budget.

Examples are forced migration to battery powered landscape equipment... city is spending a ton of money buying Stihl back back battery packs yet the corporation yard warehouse is full of 2-stroke equipment.

City sold off all the diesel chippers because not tier 4 final... it's stuff like this that makes no sense to the working guy...

 

[MoKelly]

Yep… the day negative interest rate start is the same day I go shopping for a bigger mattress.

Lots of advanced aged retired hit hard by low CD rates.

Moms neighbor at 93 was beside herself saying her deceased husband left clear instructions to only spend interest but there was no interest to spend…

When you see bigger mattress sales spike, be the first at the bank. If you are late, the bank will be closed and out of cash.

Silicon Valley bank times 1000’s.

 

[MoKelly]

Why is it when taxes are reduced spending increases?

It seems the real disconnect is spending on the Federal Level is independent of revenue.

Unsustainable is right but financial constraints seem not to apply at the Federal level.

Taxes of all kinds are by far my biggest expense and property tax is the worst as it is a tax for simply "Owning"

Sales tax requires a transaction, Income tax require income, etc.

Then there is the value derived from taxes paid? How many 2 million dollar restrooms does it take to rip through a budget or bike lanes to no where?

On a city level not much... police no where to be found and lawlessness has no bounds...

On a State level the State will willing pay more for goods and services and restrain trade based on politics... such as California travel bans to many other States... mandating higher cost energy, forced obsolescence of diesel and two stroke equipment just for starters and this includes tractors.

Your comment is the key —- “spending on the Federal level is independent of revenue”.

Never a good way of managing finances.

 

[2manyrocks]

The Fed's levels of spending and debt are at such high levels that it's doubtful anyone really grasps the enormity of it.

When people think it's all free and no one has to pay, that's when you're really in for it.

 

[ultrarunner]

Your comment is the key —- “spending on the Federal level is independent of revenue”.

Never a good way of managing finances.

Grandma would say a recipe for disaster...

Maybe there will be the great currency reset in our future?

Could be why so many continue to buy Real Estate with the emphasis being REAL...

 

[Gator6x4]

Your comment is the key —- “spending on the Federal level is independent of revenue”.

Never a good way of managing finances.

State Constitutions prevent states from deficit spending or borrowing money. States pass the bills for disaster relief to the Federal Government who has to borrow the money to send to the state, and up goes the Federal Deficit.

This is why when a disaster, man made or weather related happens the Governor of a state declares it as a disaster so they can pass the bill on to the Feds.


Here's a look at the top 8 states that received the most federal disaster funding over the past five years:

• New York: $16.06 billion.
• Louisiana: $5.57 billion.
• Texas: $3.86 billion.
• New Jersey: $3.57 billion.
• Florida: $2.61 billion.
• California: $1.7 billion.
• North Carolina: $716 million.
• South Carolina: $555 million.

https://www.valuepenguin.com/which-states-depend-on-fema-aid

 

[two_bit_score]

I will add in if you have to use fear mongering or sales gimmicks to sell your product then it's a hard sale and not something people really want.

Or, they don’t trust the seller.

 

[newbury]

Unsustainable is right but financial constraints seem not to apply at the Federal level.

Taxes of all kinds are by far my biggest expense and property tax is the worst as it is a tax for simply "Owning"

And how much is your Federal property tax?

I don't pay any Federal property tax.

 

[ultrarunner]

And how much is your Federal property tax?

I don't pay any Federal property tax.

A lot so that it has me scrambling and California really hit hard this year.

I invested in a commercial property as a very junior partner.. like 2% of the shopping center with Home Depot and Lowes and Safeway, etc... plus a Holiday Inn Express... it was just farm land.

The largest investor passed away and another almost as large is in ill health and the vote was to go to cash.

OK... big taxable gain but my funds were reinvested so I got the tax bill but zero cash... if that makes sense.

 

[ultrarunner]

And how much is your Federal property tax?

I don't pay any Federal property tax.

Are you in a religious or non profit organization or working off shore without Federal tax due?

 

[newbury]

A lot so that it has me scrambling and California really hit hard this year.

So you have to pay a separate property tax to the Feds? Us Government?
All my property taxes go to state and local government.
/edit -
And I hope the Feds don't institute a Federal property tax.

 

[ultrarunner]

So you have to pay a separate property tax to the Feds? Us Government?
All my property taxes go to state and local government.

Sorry... I have never paid Federal Property Tax... in fact a US Post Office I own a tiny part had Post Office reimbursing property tax in the NNN lease term...

Property Tax on my home bill has 28 special assessments after State and County... some are regional, some city for midnight basketball... even one for the Raiders Coliseum expansion and I am blessed with both city and county portions even though the Raiders are long gone and the plan is to demo the whole thing if the A's leave...

 

[Gator6x4]

A lot so that it has me scrambling and California really hit hard this year.

I invested in a commercial property as a very junior partner.. like 2% of the shopping center with Home Depot and Lowes and Safeway, etc... plus a Holiday Inn Express... it was just farm land.

The largest investor passed away and another almost as large is in ill health and the vote was to go to cash.

OK... big taxable gain but my funds were reinvested so I got the tax bill but zero cash... if that makes sense.

Yep…..Sounds like me during the time Carter was President and CD’s were paying 18-19 percent.I had the interest rolled into the CD.

Tax time arrived and as you say, I got zero cash, but the tax bill.

 

[Cahaba Valley Farm]

Moms neighbor at 93 was beside herself saying her deceased husband left clear instructions to only spend interest but there was no interest to spend…

One of the many reasons you have to diversify your investments if you can.

Many did and more than a few had new hardship as interest rates fell into the basement and stayed there.

It was a reality that my father struggled to live through for a while. Boy those were some hard learning years for the both of us.

 

[Cahaba Valley Farm]

When people think it's all free and no one has to pay, that's when you're really in for it.

That's what I have been saying about free financing. It's not free.

 

[MoKelly]

That's what I have been saying about free financing. It's not free.

Someone famous (Milton Friedman?) once said “there’s no such thing as a free lunch”.

It is true.

 

[D&D]

Property Tax on my home bill has 28 special assessments after State and County... some are regional, some city for midnight basketball... even one for the Raiders Coliseum expansion and I am blessed with both city and county portions even though the Raiders are long gone and the plan is to demo the whole thing if the A's leave...

Stadiums/coliseums, another “subsidy” I forgot about. Why the Voters get to find those things
I don’t think having 28 special assessments on my tax bill would be pleasant. Without any, my assessments have risen to the point of hurting when the bills come.

 

[D&D]

Yep…..Sounds like me during the time Carter was President .

Something sounds very familiar about comparing that to today.

“History repeats itself endlessly for those who are unwilling to learn from the past” (Brown)

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[Hay Dude]

Something sounds very familiar about comparing that to today.

“History repeats itself endlessly for those who are unwilling to learn from the past” (Brown)

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And yet people just keep on pulling the Same lever in the voting booth.
When you keep selling yourself as someone who gives away money, when in reality you are someone who actually takes money, but you can still get people to vote for you because you are attractive, have great hair or went to Harvard……man that’s just genius.