Monday, May 09, 2005

Hard Landing Assured for the Elderly Poor

The New York Times has published a report about "The Perfect Storm that Could Drown the Economy." Here's a quote:
There's a pattern that is familiar from so many other countries that have gotten into debt problems," said Jeffrey A. Frankel, an economist at Harvard's Kennedy School of Government. "A simultaneous rise in interest rates, fall in securities prices and depreciation of the currency."

China's The Standard has published a report that may describe the event that could trigger a perfect storm. The Standard says "U.S. 'Playing with Fire' on Yuan Drive." Here are a couple quotes:
Politicians are playing with fire,'' said Ronald McKinnon, an economics professor at Stanford University in California.

Nouriel Roubini, a former adviser to treasury secretary Robert Rubin, said the United States' reliance on China to plug record US budget deficits means lawmakers risk ``biting that hand that feeds'' the economy.

Meanwhile, the social safety net for the most vulnerable has been shredded. The New York Times is also reporting that "Elderly people with low incomes may lose some of their food stamps if they sign up for the new Medicare prescription drug benefit."

I think we should just drop the elderly poor off at the White House for dinner every day.


Greek Shadow said...

Remember the Bonus Army of 1931 anad 32. Hoover's response was to send in the Army, headed by Douglas McArthur. Those ex-soldiers led the charge for voting the Republicans out and putting the Democrats in power for the next sixty years. It would be interesting to see if Bush would send the Army to clear out a bunch of grandma's.

jtr said...

Your statements about the "social safety net" are very misleading. For example, you wrote, "Meanwhile, the social safety net for the most vulnerable has been shredded." At the end of the article is this choice quote, "But Mrs. Smith's monthly food stamp allotment, $27, will be reduced to $10 a month, because her 'out-of-pocket medical costs have gone down.' The administration says she will come out ahead because 'she still has $25 more cash in her pocket -- $42 medical savings, less the $17 decrease in food stamps.'" While the administration is claiming that the elderly with low incomes who sign up for the new Medicare debacle, er, "benefit" may see a reduction in food stamps, this reduction is offset by a greater reduction in out-of-pocket expenses. This is very different from how you portrayed what was written in the article.