economic tsunami

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Sensing a Tsunami Ocean Tsunamis can be detected using our human senses. Economic tsunamis also have natural warning signs.

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Learn to recognize economic tsunami -- and what to do.

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Page 1: Economic Tsunami

Sensing a Tsunami

Ocean Tsunamis can be detected using our human senses.

Economic tsunamis also have natural warning signs.

Page 2: Economic Tsunami

Sensing an Economic Tsunami

Warning signs:• FEEL the economy shaking

severely • SEE an unusual disappearance of

benefits • HEAR the roar for more

entitlements

Page 3: Economic Tsunami

FEEL the economy shaking severely?

Page 4: Economic Tsunami

Unfunded obligations

• * In 2007, the unfunded obligations for Medicare and Social Security alone totaled almost $41 trillion. That sum, equivalent to $352,000 per U.S. household, is the present-value shortfall between the growing cost of entitlements and the dedicated revenues intended to pay for them over the next 75 years. (David M. Walker, former U.S. Comptroller General: October 30, 2008)

• http://money.cnn.com/2008/10/28/magazines/fortune/babyboomcrisis_walker.fortune/index.htm

Page 5: Economic Tsunami

Growing cost of entitlements

• In 2008, Maryland teacher Kathleen Casey-Kirschling became the first baby-boom retiree to collect Social Security benefits. Nearly 78 million more boomers hope to collect over the next 17 years.

• http://www.usatoday.com/news/nation/2005-12-29-first-boomer_x.htm

Page 6: Economic Tsunami

Fewer workers to fund entitlements

• As the number of new Medicare beneficiaries rises sharply, there will be significantly fewer workers per retiree to fund Medicare. For example: in 1970 GM had 400,000 union workers. Now, there are only 73,000.

• http://thomas.loc.gov/medicare/factpage4.html

Page 7: Economic Tsunami

SEE a disappearance of benefits?

Page 8: Economic Tsunami

Employers reducing retiree benefits

• * The Equal Employment Opportunity Commission ruled last year that employers could reduce or eliminate health benefits for retirees when they turn 65 and become eligible for Medicare.

• Under the new rule, employers may, if they choose, provide retiree health benefits “only to those retirees who are not yet eligible for Medicare.”

• Likewise, the rule says, retiree health benefits can be “altered, reduced or eliminated” when a retiree becomes eligible for Medicare.

• Further, employers will be able to reduce or eliminate health benefits provided to the spouse or dependents of a retired worker 65 or over, regardless of whether benefits for the retiree are changed. (December 27, 2007)

• http://www.nytimes.com/2007/12/27/washington/27retire.html• http://www.nytimes.com/2007/12/27/washington/27retire.html

Page 9: Economic Tsunami

HEAR the roar for more entitlements?

Page 10: Economic Tsunami

Demanding that somebody else to pay for your benefits

• "My solution to this problem is to get the foreign manufacturers to help pay for our retiree’s health care! How could we get them to do this? Take the burden of health care off of all our manufacturers by creating a single payer (government) health care plan that would cover everyone in the country.

• Fund it with a value added tax. Domestic and foreign manufacturers would each pay the tax based on the value of the car. Cars manufactured in a foreign country would also pay this tax when the car arrives in this country." --John Ryden, Global Warming Examiner

• http://www.examiner.com/x-325-Global-Warming-Examiner%7Ey2008m12d4-Who-should-pay-for-retired-auto-workers-health-care

Page 11: Economic Tsunami

Regulation, price controls, and rationing of health care

• Obama will press Congress to pass legislation • To impose new controls on health care costs • To expand insurance coverage . . . • To establish a powerful new Federal Health

Board to contain health care costs and to make recommendations about which health procedures and treatments should be covered under public and private insurance plans. (April 24, 2007)

• http://news.yahoo.com/s/cq/20081130/pl_cq_politics/politics2992019

Page 12: Economic Tsunami

RUN !

Page 13: Economic Tsunami

Don’t wait !• Don't wait for official evacuation orders

from the President.• Immediately leave low-lying entitlement

dependency.• Move inland to the higher ground of thrift,

self-reliance, and responsibility.• RUN -- you've been told the economic

tsunami is coming!

Page 14: Economic Tsunami

Contact: Isabel HogueHealth and Retirement Insurance

Lafayette, Indiana765-714-4202

[email protected]

• I am an independent insurance agent, living in Lafayette, Indiana. I offer health insurance, Medicare plans, long-term care insurance, life insurance, and annuities.

• I offer free educational presentations to any group.