Social Security

July indicator for 2019 Social Security COLA shows 2.9%

This is the month that matters. The average CPI-W for July, August and September compared with the same months for 2017 is what determines the 2019 COLA.

The July CPI-W was 246.155 Compare this with the 2017 three month average of 239.668

Of the CPI-W for August and September is at least 256.155, the 2019 COLA will be 2.9%. Still a chance for 3%.

Advertisements

1 reply »

  1. No wonder, no matter what the COLA is each year, I cannot seem to stay ahead of the cost increases. Now that Steak is over $8 per pound I purchase Hamburger. I remember my grandfather telling me when I was 20, someday you will live your golden years, he just forgot to tell me I would be doing it with copper, lol.

    When the government changes the rules – We all lose out.

    In 2011, John Melloy reported on the “real” inflation rate, calculated with the methodology used before 1980 (bolding ours):

    Inflation, using the reporting methodologies in place before 1980, hit an annual rate of 9.6 percent in February, according to the Shadow Government Statistics newsletter.

    Since 1980, the Bureau of Labor Statistics has changed the way it calculates the CPI in order to account for the substitution of products, improvements in quality (i.e. iPad 2 costing the same as original iPad) and other things. Backing out more methods implemented in 1990 by the BLS still puts inflation at a 5.5 percent rate and getting worse, according to the calculations.

    The inflation rate expected by the BLS at the time was only 2.6%, according to the same report. The disparity between these two numbers is alarming.

    If this “shadow” inflation rate is over 5% now, that might shed some light on the real impact that inflation is having on the U.S. economy. Maybe it’s not such a good idea to bail out huge companies with printed money? Maybe, just maybe, Quantitative Easing served as a band aid, and wasn’t a full solution to the problems stemming from the Great Recession of 2008?

    And what if this “shadow” inflation rate was revealed? Would that “overheat”, then crash the economy?

    In a 2016 report, financial expert Charles Hugh Smith made the case that it would:

    What would happen if the real rate of inflation was revealed? The entire status quo would immediately implode. Consider the immediate consequences to Social Security, interest rates and the cost of refinancing government debt.

    In fact, “stagflation,” a term not heard since the 1970’s just before the U.S. Government changed methodologies for figuring inflation, is making a return to the discussion.

    Perhaps it’s time to “pay the piper,” as the old saying goes. Flooding the economy with printed money (fiat currency) can only work for so long.

    It failed in Roman times, and it will likely fail at some time in the near future.

    The Economic “Golden Rule”

    Despite the higher inflation (no matter how high it actually is), gold is overdue for a breakout.

    According to a recent report from the Dutch bank ING, inflation may just be the catalyst needed for gold to move past $1400… and fast.

    So as inflation keeps rising at whatever rate the BLS wants to report, it’s a good time to take advantage of the opportunity to diversify some of your portfolio into gold

    I cannot afford gold, but I will be buying silver every month, I will be buying at least $100 worth as a hedge against inflation, more if I can.

    Like

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s