Is the 2010 COLA just a government bribe for seniors on Social Security?
Next year, for the first time ever, social security recipients will not receive a cost of living adjustment in their payments. Instead, Barack Obama is proposing a one-time $250 payment right before next fall’s midterm elections. Gerald Celente says that the cost of living really hasn’t decreased, the government is basing their measurements on a decreasing standard of living and the payout is just to keep people quiet.
Bill: Joining us for more on this is Dina. So does the government have anything left now to sweeten the pill for those on Social Security?
Dina Gusovsky: Indeed they do. Now millions of Social Security recipients, as you said, will not see an increase in their monthly payments next year, because the cost of living has decreased. But, the federal government says it’s going to give them a onetime payment of $250, which of course will cost the government billions of dollars, considering how many seniors there are. So, is this really warranted, and how much is it going to contribute to the national debt?
Well, joining me is Gerald Celente from the Trends Research Institute. Mr. Celente, thank you so much for speaking to me. So, help me understand this – if the cost of living is decreasing, then why are seniors getting anything at all?
Gerald Celente: Well, first of all, the cost of living isn’t decreasing. What they are doing in Washington is the same thing they do on Wall Street. They cook the book. What they’ve done is they’ve cooked the cost of living. For example, one time it used to be a fixed basket of goods. Now it’s a variable basket of goods. So let’s say that the price of gasoline goes up, they say, “Oh, no no. It really didn’t go up. The quality of air went up, so therefore, the cost of gasoline went down.” They’re doing everything they can to shortchange the people. So it’s going to cost the government 13 billion dollars to give the people a couple of bucks that they will hardly feel at all.
Dina Gusvsky: Well, that’s another thing I wanted to ask you. Where did they come off with this figure? What’s $250 going to do?
Geralnd Celente: Well, they’re just making something up, just like they make up the numbers. These numbers have nothing to do with reality. The reality is that what they’re measuring now is a declining standard of living. So let’s say at one time they measured you going into a retail store and buying some clothes. Now they’re going to measure you going into a discount store, or a dollar store, to buy your goods and services. They didn’t even take into account the rising prices of housing. The way they measure it is, “How much can you rent your house for? Even though, let’s say, you are paying $4,000 a month for that mortgage, you can only rent it for $1,500, so therefore the cost didn’t go up, it went down.” They’re cooking the books just like they do on Wall Street.
Dina Gusvsky: So is this essentially a political move, because these payments are going to be issued just before the mid-term elections. Is this kind of a bribe, would you say, because politicians rely on seniors to vote?
Gerald Celente: Of course it is. The people are seething from the tens of billions of dollars that executives are getting in pay, and the Wall Street bonuses that were given to them, via the people, through the bailout programs. So they’re throwing the people a couple of crumbs to keep them quiet and to say, “Hey, we’re in your corner and we’re doing the best we can to help you”. It’s political jive talk.
Dina Gusvsky: Is this a second stimulus then? Because the government has been very careful about how it words this. What do you think?
Gerald Celente: Well, it’s not a stimulus. But what it is doing is that the effect is the same. Follow the dollar and follow gold prices. Gold prices are hitting historic highs. The dollar is now worth 16% on year, and what it is doing is it is devaluing the dollar and a continuation of very, very irresponsible Federal Reserve policies. It’s just building up more debt, that’s all it’s doing.
Dina Gusvsky: Well, speaking about that, how does Barack Obama plan to finance this? He hasn’t been clear on that, either.
Gerald Celente: Same way they finance everything, by just selling more debt. They’re monetizing debt, and so that’s all we’re seeing, again. The results can be seen on the markets. Current events form future trends. You know, they’re talking about the DOW hitting 10,000. Well, the DOW first hit 10,000 ten years ago. Since that time, the dollar has lost 36% against the Swiss franc and the euro. Ten years ago an ounce of gold was selling at $280/ounce, not $1,050/ounce as it is today. And ten years ago, a barrel of oil was going for under $17, not nearly $77 a barrel. So you can see what they’re doing; devaluing the dollar. The cost of living index is really just chasing America’s lowering standards of living.
Dina Gusvsky: That’s a very interesting point, Mr. Celente. I want to thank you for your analysis, as always. And right now I’m going to throw it back to you in Moscow, Bill. But we will be here in just one hour bringing you another live up-to-date report.
Bill: Thanks very much indeed, Dina. And as Dina says…
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LOL….many will have starved to death by next fall. I am sorry but this whole thing is a crock! It is right up there with passing a “public”healthcare bill that fines anyone who can not afford to buy…Yeah way to go folks! Does anyone in Washington know how many people in this country are doing with out a healthcare, food and meds? If they can keep the lights and heat on in the hovel they llive in they are lucky!! I have a great idea….lets let Congress and the President live on what retirees do for two years of their first term. With no real help with healthcare or food or heat….