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Overall, a study conducted by Boston College’s Center for Retirement Research discovered that American workers are $6.6 trillion short of what they need to retire comfortably.
So needless to say, we have a major problem.
Baby Boomers are just starting to retire and the Social Security system is still solvent at the moment, and yet the number of elderly Americans that are experiencing financial problems is already soaring.
For example, between 1991 and 2007 the number of Americans between the ages of 65 and 74 that filed for bankruptcy rose by a staggering 178 percent.
Also, at this point one out of every six elderly Americans is already living below the federal poverty line.
So how bad are things going to be when Social Security collapses?
That is frightening to think about.
In the short-term, millions upon millions of retired Americans that are living on fixed incomes are going to be absolutely crushed by the inflation that QE3 is going to cause.
Just like we saw with QE1 and QE2, a lot of the money from QE3 is going to end up in agricultural commodities and oil. That means that retirees (and all the rest of us) are going to end up paying more for food at the supermarket and gasoline at the pump.
But those on fixed incomes are not going to see a corresponding increase in their incomes. That means that their standards of living will go down.
Things are tough for retirees right now, but they are going to get a lot tougher.
Right now, there are somewhere around 40 million senior citizens. By 2050 that number is projected to increase to 89 million.
So how will our society cope with more than twice as many senior citizens?
Sadly, we will likely never get to find out.
The truth is that our system is almost certainly going to totally collapse long before then.
We are rapidly approaching a financial crisis unlike anything we have ever seen before in U.S. history, and the foolish policies of the Federal Reserve just keep making things even worse.
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