If you are like me you probably get a ton of email stories and letters sent to you. Most of it is pure junk and much of it is just untrue. I tend to delete about 99% of the stuff that floods my inbox every day.  But once in a while, one reaches me.

Here is one I received today from a good friend, who is himself an airline pilot, and I wanted to share it with you.  It is admittedly a bit longish but well worth reading to the end.  And, I don’t care how hard your heart is, you may want to grab a Kleenex before you start reading:

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He writes: My lead flight attendant came to me and said, “We have an H.R. on this flight.” (H.R. stands for human remains.) “Are they military?” I asked.

‘Yes’, she said.

‘Is there an escort?’ I asked.

‘Yes, I already assigned him a seat’.

‘Would you please tell him to come to the flight deck. You can board him early,” I said.

A short while later, a young army sergeant entered the flight deck. He was the image of the perfectly dressed soldier.  He introduced himself and I asked him about his soldier. The escorts of these fallen soldiers talk about them as if they are still alive and still with us.

‘My soldier is on his way back to Virginia,’ he said. He proceeded to answer my questions, but offered no words.

I asked him if there was anything I could do for him and he said “no sir.” I told him that he had the toughest job in the military and that I appreciated the work that he does for the families of our fallen soldiers. The first officer and I got up out of our seats to shake his hand. He left the flight deck to find his seat.

We completed our preflight checks, pushed back and performed an uneventful departure. About 30 minutes into our flight I received a call from the lead flight attendant in the cabin. ‘I just found out the family of the soldier we are carrying, is on board’, she said. She then proceeded to tell me that the father, mother, wife and 2-year old daughter were escorting their son, husband, and father home.  The family was upset because they were unable to see the container that the soldier was in before we left. We were on our way to a major hub at which the family was going to wait four hours for the connecting flight home to Virginia.

The father of the soldier told the flight attendant that knowing his son was below him in the cargo compartment and being unable to see him was too much for him and the family to bear. He had asked the flight attendant if there was anything that could be done to allow them to see him upon our arrival. The family wanted to be outside by the cargo door to watch the soldier being taken off the airplane. I could hear the desperation in the flight attendants voice when she asked me if there was anything I could do.. ‘I’m on it’, I said. I told her that I would get back to her.

Airborne communication with my company normally occurs in the form of e-mail like messages. I decided to bypass this system and contact my flight dispatcher directly on a secondary radio. There is a radio operator in the operations control center who connects you to the telephone of the dispatcher. I was in direct contact with the dispatcher.. I explained the situation I had on board with the family and what it was the family wanted. He said he understood and that he would get back to me.

Two hours went by and I had not heard from the dispatcher. We were going to get busy soon and I needed to know what to tell the family. I sent a text message asking for an update. I saved the return message from the dispatcher and the following is the text:

“Captain, sorry it has taken so long to get back to you. There is policy on this now and I had to check on a few things. Upon your arrival a dedicated escort team will meet the aircraft. The team will escort the family to the ramp and plane side. A van will be used to load the remains with a secondary van for the family. The family will be taken to their departure area and escorted into the terminal where the remains can be seen on the ramp. It is a private area for the family only. When the connecting aircraft arrives, the family will be escorted onto the ramp and plane side to watch the remains being loaded for the final leg home. Captain, most of us here in flight control are veterans.  Please pass our condolences on to the family. Thanks.”

I sent a message back telling flight control thanks for a good job. I printed out the message and gave it to the lead flight attendant to pass on to the father. The lead flight attendant was very thankful and told me, ‘You have no idea how much this will mean to them.’

Things started getting busy for the descent, approach and landing. After landing, we cleared the runway and taxied to the ramp area. The ramp is huge with 15 gates on either side of the alleyway. It is always a busy area with aircraft maneuvering every which way to enter and exit. When we entered the ramp and checked in with the ramp controller, we were told that all traffic was being held for us.

‘There is a team in place to meet the aircraft’, we were told. It looked like it was all coming together, then I realized that once we turned the seat belt sign off, everyone would stand up at once and delay the family from getting off the airplane.

As we approached our gate, I asked the copilot to tell the ramp controller we were going to stop short of the gate to make an announcement to the passengers. He did that and the ramp controller said, ‘Take your time.’

I stopped the aircraft and set the parking brake. I pushed the public address button and said, ‘Ladies and gentleman, this is your Captain speaking. I have stopped short of our gate to make a special announcement. We have a passenger on board who deserves our honor and respect. His Name is Private XXXXXX, a soldier who recently lost his life. Private XXXXXX is under your feet in the cargo hold. Escorting him today is Army Sergeant XXXXXXX. Also, on board are his father, mother, wife, and daughter. Your entire flight crew is asking for all passengers to remain in their seats to allow the family to exit the aircraft first. Thank you.’

We continued the turn to the gate, came to a stop and started our shutdown procedures. A couple of minutes later I opened the cockpit door. I found the two forward flight attendants crying, something you just do not see. I was told that after we came to a stop, every passenger on the aircraft stayed in their seats, waiting for the family to exit the aircraft.

When the family got up and gathered their things, a passenger slowly started to clap his hands. Moments later more passengers joined in and soon the entire aircraft was clapping. Words of ‘God Bless You’, I’m sorry, thank you, be proud, and other kind words were uttered to the family as they made their way down the aisle and out of the airplane. They were escorted down to the ramp to finally be with their loved one.

Many of the passengers disembarking thanked me for the announcement I had made. They were just words, I told them, I could say them over and over again, but nothing I say will bring back that brave soldier.

I respectfully ask that all of you reflect on this event and the sacrifices that millions of our men and women have made to ensure our freedom and safety in these United States of AMERICA.

GOD BLESS YOU AND ALL OUR MEN AND WOMEN WHO SERVE AND WHO HAVE SERVED THIS GREAT COUNTRY !

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I got an interesting email from one of my readers this week alerting me to a great opportunity for seniors. Summer Jobs in Alaska working for Cruise lines, lodges and as tour guides.  This is the real deal –nothing to buy – just apply.

One of the employers is Princess cruises who operate several wilderness lodges in Alaska.  Even though you are a seasonal employee, when you are not working your get steeply discounted crusises on Princess. Here is what it says about that:

Under the Employee Space Available Program, eligible employees are afforded the chance to travel at a reduced rate for an inside cabin on a space-available basis.  Cabin upgrades may be available for an additional fee.  To be eligible for this program, employees must complete two consecutive seasonal contracts, working a minimum of 600 hours total.  With every consecutive season worked, you gain higher seasonal seniority, which means a greater chance of being confirmed on your selected cruise!

The Friends and Family Program offers select cruises for Princess seasonal employees at discounted rates not available to the general public.  You are eligible for this program after one seasonal contract and remain eligible until one year from the date your seasonal employment ends.  You may book as many cruises as you like under this program!

Employees traveling on either program are eligible for onboard Captain’s Circle privileges at the applicable level (depending on how many Princess cruises you have taken in the past), as well as a variety of discounts on items including bar purchases, boutiques purchases, photo purchases, and more.  As a Princess employee, you are also eligible to purchase industry travel protection insurance at a deeply discounted rate.

One of the other employers is the Alaska Tour Division.  Here is what the website says about them:

A summer job in Alaskaat one of our many tour divisions offers a wide range of exciting opportunities. Positions range from Server and Chef on our award winning train cars to Driver Guides, Tour Directors and Guest Service support staff. Together with competitive wages and great cruise privileges, Princess Tours and Holland America Line have more unique job offerings in more diverse locations than any other tour company in Alaska.

If you have a passion for adventure and service, we would love to meet you. So take a closer look at our many Alaska job opportunities and discover what we have for you. Whatever adventure you desire, it’s ready for you in Alaska!

Welcome to the Alaska Tour Divisions!

Who are we?

We are HAP Alaska – Yukon.  Headquartered in Seattle Washington, we are the largest tour operator in Alaska and  the Yukon.

HAP Alaska – Yukon is a collaborative land operation owned jointly by Holland America Line and Princess Cruises. Princess Cruises and Holland America Line are part of Carnival Corporation, one of the largest vacation companies in the world.

HAP Alaska – Yukon is a unique operation. The joint operation formed by Holland America Line and Princess Cruises is only found within the Alaska and Yukon tour product that each company sells.

Its too late to work there now, but now is the time to apply for next year.  Maybe Karen and I will see you there next year?

Skip McGrath,

Head Geezer

That is not a political question. Both parties are lying to the people about the budget deficit and the debt cieling.

Big Lie Number 1:  If we don’t pass the debt ceiling we will go into default

Default has nothing to do with the debt ceiling.  The government would only default if they could not make interest payments on our debt in the form of treasury bonds and bills.  Here is the math:

• The government spends about $295 billion per month
• The government takes in approximately $200 Billion in taxes every month
• This leaves a monthly deficit of $95 billion per month
• Interest payment on the debt is about $20 billion per moth
• Social Security runs another $50 Billion per month and Medicare about $55 Billion
• So far we are up to $125 Billion – and we still have $75 billion to work with.
• Defense spending is about $50 –but could be cut by $10 if we only paid for the essentials
• Then what is left would have to run the rest of the government.

So there is no default unless we decide not to pay the $20 billion per month on interest. If a politician says you won’t get your social security check he (or she) is lying. There is plenty of money to pay social security.  Of course if the president though it was more important to pay for the EPA, Agricultural subsidies to farmers, The National Endowment for the Arts or National Public Radio –then he could make the choice to do that instead of sending us our social security checks.  But if he did that I suspect seniors would march on Washington by the millions.

Yes, a lot of programs would be cut, employees furloughed and probably the parks and museums would close.  But interest on the debt would be paid, social security checks would go out, soldiers and sailors would be paid, doctors would be paid by Medicare and the country would probably run just fine.  So forget about default. Stress and inconvenience – yes. Default – No.

Big Lie Number 2:  Both parties are coming up with plans to cut spending

This is an even bigger lie.  Both parties claim to have plans to cut the deficit to offset the increase in the debt ceiling. That is total bull!  When you look at both party’s plans there are no real cuts in spending –they are only cuts in the estimate of how much the deficit will grow. Currently the government projects the deficit will grow about $10 Trillion over the next ten years (that estimate is on the low side as some economists predict it will grow over $15 Trillion).

But when President Obama, Harry Reid or John Baynor speak about cuts they are talking about letting the deficit grow less.  So if a $2 Trillion cut is announced as part of a deal, that meant the deficit will only grow to $8 Trillion instead of $10 Trillion.  That is Washington’s idea of a cut.

Where are the real cuts?  Between the last two censuses (2000 – 2010) the population of the United States grew slightly less than 7%. During that same period the number of US Government employees grew 19% and state government employment was up over 16%.  So, bottom line, the government is growing much faster than the population.

Big Lie Number 3:  If we raise taxes on oil companies, corporate jet owners and millionaires it will balance the budget.

This one is really cute.  Lets take them one at a time:

• Oil companies – When the Politicians talk about special breaks for oil companies they are speaking about the “depletion allowance.”  This is a tax break to compensate the oil companies since they are losing their reserves as they pump. The allowance was put in place to give them an incentive to explore and drill new well to replace the oil that is depleted.  If that deduction were taken away from the oil companies the total taxes collected over the next ten years would amount to about $40 billion.  That’s over ten years.  But our deficit just this year is over $1 Trillion.
• Corporate jets – A few years ago when we were trying to recover from the recession that hit after 9/11, the congress passed and the president signed a bill that allowed corporate jet owners to accelerate their depreciation deduction.  The reason for this was the corporate jet industry was in the toilet and unemployment in that industry was running over 25%.

  The deductions worked.  The corporate jet industry is now healthy and currently employs over 700,000 people between the manufacturers, sales, maintenance, fixed base operators, pilots and so on.  So here we are in the middle of a recession and the president wants to raise a tax that will put people in the industry out of work.  He wants to stick it to millionaires jet owners but in the process he will hit factory workers, pilots, food service, sales people and maintenance personnel.  And worse – the total taxes saved will amount to less than $9 Billion over the next ten years.

• Millionaires – The president keeps mentioning millionaires and billionaires paying more taxes.  Well taxes are taken from income –not wealth.  Most true millionaires and certainly billionaires actually make very little money from earned income.  The number of people who make over $1 million in income in a given year is less than ten thousand.

  You could raise the tax rate to 90% on all of those people and you would only take in an additional $10 to $12 billion a year.  Besides, these are the people who invest in companies, create jobs and buy things that employ people.  So with a recession on, lets hit them where it hurts – Right!

  Remember the annual deficit for just this year is over $1 Trillion. If you add all three of these tax increases up, you get $25 billion is increased revenue. Even if you taxed everyone who made over $200,000 a year at 90% you would only bring in another $60 to $70 billion.

So now you know what is going on.  It doesn’t matter if you are a Independent, a Democrat or a Republican we are all being lied to by both parties.  The one thing Washington won’t do is actually cut actual spending.

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Have you ever seen an Earthbox?  If you like tomatoes and fresh vegetables, this is the perfect way to go.  I live in the Pacific Northwest where we have a short growing season and its very difficult to get great tomatoes.  But last year I found the Earthbox.

The Earthbox is a self-watering container box with a cover and it comes with its own fertilizer and dolomite and WOW – does it grow great fruit. 

Grow Perfect Tomatoes with an Earthbox

Look at these shots of my cherry and Ace tomatoes from last year:

Earthbox Product Description

The Earthbox will double your yields of vegetables, fruits, herbs and flowers with less fertilizer, less watering, and no weeding at all with the EarthBox Garden growing system.

Everyone is terrified that radiation from the Japan nuclear reactors may reach the United States.  This fear is unfounded, but even if it happened it may not be that bad.

OK – The EPA  says that exposure to any amount of ionizing radiation, no matter how small, is harmful. No amount of radioactivity can be proclaimed safe. Accordingly, the EPA and the NCR (Nuclear Regulatory Commission) have set extremely stringent regulatory limits for public exposure to radiation — 15 and 100 mrem (millirem)/year respectively.

I wanted to tell you that before I get into some other information that you may find startling and at odds with the EPA and the NRC.

Contrary to what people believe, the real truth is that ionizing radiation in low doses does not cause cancer (or genetic defects).  In fact, LOW DOSES OF RADIATION CAN HAVE A BENEFICIAL EFFECT ON ONE’S HEALTH.  There are epidemiological studies and scientific data on health effects from low to moderate doses of ionizing radiation that show it decreases the risk of cancer. Government authorities and the news media routinely ignore this data which is well known in the nuclear scientific community.

There is process known as radiation hormesis that mediates its beneficial effect on health. Investigators have found that small doses of radiation have a stimulating and protective effect on cellular function. It stimulates immune system defenses, prevents oxidative DNA damage, and suppresses cancer.

Some examples:

People who live in Ramsar, Iran, on the Caspian Sea, are exposed to natural background radiation of 79,000 mrem per year which is 5,266 times more than what the EPA’s 15-mrem/year radiation safety standard allows.

The local river and its streams have a high concentration of radium, which is 15 times more radioactive than plutonium. Its 2,000 residents do not have an increased incidence of cancer,  and their life span is the same as that of other Iranians.  In Guarapari, Brazil, hundreds of people get 17,500 mrem of radiation per year with no ill effects.

A $10 million Department of Energy study from 1991 by the Johns Hopkins School of Public Health looked at data on 700,000 shipyard workers. The workers who worked on the reactors had been exposed to 10 times more radiation than the others. The workers exposed to excess radiation had a 24 percent lower death rate and a 25 percent lower cancer mortality than the non-irradiated workers.

Consider Taiwan:

In the early 1980s, 180 apartment buildings were built with recycled steel that was accidentally contaminated with Cobalt-60.  Four-thousand Taiwanese people lived in them for more than 10 years before their radioactive state was discovered. The amount of radiation they received ranged up to more than 1,500 mrem per year.  The cancer mortality, over a 20-year period, in the radiated occupants was 97 percent less (3.5 deaths per 100,000 person years) than that of the general population of Taiwan (116 deaths per 100,000 person years). Even the incidence of congenital heart malformations in the children they bore was reduced. This carefully done study shows, as its authors put it, that “chronic radiation [far above EPA limits] is an effective preventative against cancer.”

And how about those Atom bomb survivors in Japan?

Atom bomb survivors in Nagasaki who received 1,000 to 19,000 mrem of radiation have had a lower cancer rate, (especially  leukemia and colon cancer) than the non-irradiated control population. And it is turning out that Japan’s atom bomb survivors are living longer. They have a death rate after the age of 55 that is lower than Japanese who were not exposed to radiation.

It is not generally known but there are actually Spas where people can descend into pits of dug out uranium where they can be exposed to radiation as a treatment for illnesses.  At the Free Enterprise Radon Health Mine in Boulder, people pay to go down  a unused mining shaft to be irradiated with more than 400 times the EPA-recommended level of radon. Hundreds of people per month visit the mine looking for relief from pain and other disorders.  I have seen blog posts from people who say they see definite benefits after just 3 or 4 visits.

So if the Japanese radiation starts drifting over the Western US, you can run out and buy Iodine pills (see link below) or you can go outside and bask in the radiation and maybe cure that cold that is still hanging on and just wont’ go away.

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Drug stores in Hawaii and on the West Coast are out of Iodine pills, but there are plenty for sale on Amazon.

Today’s post is a guest article by Money & Markets owner, Martin Weiss. These events will have huge impacts on senior’s savings, investments and the value of the dollar over the coming weeks and months.

See below for information about subscribing to his newsletter

Three Shocking Events by Martin Weiss

With each passing day, new shocking events drive us closer to the next phase of this debt crisis.

EVENT #1: In New York, where the city is facing a $2.4 billion budget deficit, it’s getting nasty.

Mayor Bloomberg has called for cancelling holiday bonuses for police and firefighters — and the unions are mad as hell.

In fact, just this past week, the presidents of the two unions vowed to fight Bloomberg’s budget-cutting plan tooth and nail, accusing the Mayor of spreading false information in an attempt to steal their members’ money.

At their press conference on the cuts, the union heads used the words “liar,” “lie” and “lying” at least 23 times when referring to the mayor.

EVENT #2: A few miles away in New Jersey, the state is reeling from last week’s Standard & Poor’s’ bond downgrade.

The S&P cited the fact that the state’s pension system has $54 billion LESS than it needs to meet future obligations. But now, the lowered credit rating makes a bad situation worse by forcing New Jersey to pay higher interest rates to borrow money.

At a public forum in Union City last Wednesday, Governor Chris Christie said the Democrats, who control the Legislature, had compared him to Chicken Little. “The sky,” he said, citing S&P’s downgrade, “started to fall in today.”

EVENT #3: In Washington DC, Congress and the White House are once again proving their gross incompetence when it comes to dealing with the crisis:

First, the new Republican Speaker of the House — Representative John Boehner — called for budget cuts of $100 billion.

Then, Republicans slashed that target to about $50 billion even before they won the House.

Now, the Republicans are attempting to cut the budget by a mere $32 billion.

But it’s clear that even that paltry figure — an amount equal to just two one-hundredths (.02 percent) of the $1.5 trillion projected deficit for 2011 — can’t be passed because of opposition from the Democrats in the Senate and the White House.

Make no mistake: This nationwide meltdown of government debt is now inevitable. If our leaders have proven anything, it’s that they are still unwilling and unable to take the government debt crisis seriously.

As a result, a massive implosion of debt at all levels of government — from the smallest townships and counties, to many of our largest counties and states, and even to the federal government itself — is rushing towards us like a runaway freight train.

When it hits in the weeks and months ahead, it will crush the bond market and drive interest rates through the roof.

Our mission is to make sure you’re prepared. More than that: Our duty is to give you the investment recommendations you need to protect your portfolio and your retirement — and to actually grow your wealth even while millions of investors lose theirs.

So be sure to stay safe and pay close attention to our issues in the days ahead.

Good luck and God bless!

Martin

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Note – The situation in event #3 has changed since Martin penned this a few days ago.  The Republicans in Congress have agreed to a $60 cut in the current budget year. But it is unlikely the Democrats led Senate will go along with those cuts.

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.

As I watched the president deliver his annual State of The Union message last Tuesday, my optimism slowly ebbed away with each topic he covered.  The Constitution requires the president to send the Congress an annual report on the state of the union.  Instead over the years the State of The Union Address has turned into a political stump speech designed to tell the American people what a great job the president is doing.

So what is the actual State of The Union?

The Economy:

• The Gross Domestic Product (GDP) is now about where it was at the end of 2007
• Nominal unemployment (U3) sits at 9.4% –real unemployment (U6) is hovering around 16%
• Housing Starts are still below 0.5 million/year (2006 housing starts were over 3 million year)
• Nominal inflation is around 2.1% – Real inflation when you include food and energy is slightly under 7%
• The Congressional Budget Office forecasts the 2011 deficit to come in at $1.4 Trillion
• Total US Government debt will exceed the current debt ceiling of $14.4 Trillion by March of this year.
• For the first time in history, Social Security will collect less this year than it takes in
• When Japan lowers its corporate tax rate in February, the US will have the highest corporate tax rate in the developed world.

National Security and Defense:

• The US is engaged in two wars costing over $13 Billion per month with just over 140,000 troops engaged on the ground and another 30,000 in nearby support roles
• Al Qaida continues to grow in four other countries (Yemen, Sudan, Ethiopia and Pakistan
• Western-friendly governments in Egypt, Jordan and Yemen are under pressure and likely to fall to Islamic fundamentalist factions such as Al Qaida in the Arabian Peninsula and the Islamic Brotherhood.  The government of Lebanon has already fallen to the Hezbollah.
• Iran is still on track to develop nuclear weapons and now has missiles that can reach Israel and Europe.

Education:

• US High school graduates score 14^th in Math and 15^th in science among all developed countries (France is #1 in Math and Norway is #1 in science. – Source www.nationmaster.com statistics)
• The US is number 1 in education spending per student
• The US is 5^th in teacher salary for primary (Grade 1-8) teachers
• Nine of the countries that score better in math and science allow government educational funds to pay for private schooling (I.E. Vouchers)
• The high school dropout rate hovers around 25% –higher in the inner cities
• The US spends 5.5% of GDP on education – 14.1 % off all government spending (federal, city, state)
• 11% of US eighth graders are not literate in English

So there you have it –The real state of the Union.  That is what we should have heard and then we should have heard what the president’s plans are to fix this.  Instead we heard about green jobs and high-speed trains.  Yawn!

Tomorrow lets talk about how we Geezers could fix this problem if we were in charge. This will be your chance to play President for a Day.

If you are retired –or about to retire from a state or city government, your pension is at risk.  Here is a great article by Nilus Mattive, author of Dividend Superstars Newsletter.

Dead ahead: State and city pension FAILURES!

Nilus Mattive

Last week The New York Times dropped a bombshell, reporting that “policy makers are working behind the scenes to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.”

This is truly huge news, with far-reaching consequences. But it shouldn’t come as a surprise if you’ve been reading my columns …

Back in July, I explained how state pension funds around the country had essentially blown their fiduciary responsibilities to retirees and their broader constituencies.

Specifically, I wrote:

“They have been consistently underestimating how much money they’ll need down the line. In essence they are pretending that inflation doesn’t exist …

“Second, despite the major losses they actually experienced in their portfolios, they are acting as if those losses haven’t completely happened yet. Instead, they are basically just figuring that things will turn around if they wait long enough …

“And interestingly enough, when these same investors were winning big a few years ago, they put off contributing more of their current earnings into their accounts … essentially letting their profits carry the day, or even borrowing money from their accounts!

“Even today, with their balances way off what they should be, they are failing to contribute to their accounts. Some are even playing ‘shell games,’ by moving money around to make it look like they’re in better shape than they really are.

Then, this past September, I discussed some of the specific state pension plans at risk of imminent failure, along with arguments and steps legislators were employing to wiggle out of past promises.

Now, you’ll get no argument from me that many employee organizations expected — nay, demanded — far too much every time they went to the negotiating table. Yet I still place most of the blame for this impending crisis on career politicians.

Like coddling parents who never say “no” to their children, they were willing to promise anything to get elected and then to stay in office …

They were happy to ignore budgets and dole out money that wasn’t even in the kitty yet …

And they stubbornly put off pending problems, acting as if the piper would never show up asking for payment.

From capitol to capitol, it was just one big game of musical chairs. Now the needle has careened off the record with one last deafening screech.

Worse, the States Are Just One Facet of

This Massive National Pension Crisis!

Similar pension problems are emerging among U.S. cities, too — where local governments can already declare bankruptcy and, in some cases, hang pensioners out to dry.

And even in places where constitutions currently protect pensions, mounting problems at the state level may ultimately unravel — or at least sharply impact — retirement benefits at the local level.

Just take a look at the latest headlines and you’ll see just how widespread the problems are …

In New York City, pension costs have more than quadrupled in the past decade, from $1.5 billion in 2001 to $7 billion this year! That’s why Mayor Bloomberg recently echoed Governor Cuomo’s state-level battle to rein in pension costs, threatening huge layoffs unless unions accept drastic retirement reforms.

Meanwhile, in Cincinnati, lawmakers currently owe retirees about $1 billion more than they have socked away. And as this story explains, it’s a real mess.

Just some of the highlights:

* “[There are] policies that allow some workers to retire with pensions of up to 90 percent of their three highest years’ salary, guaranteed 3 percent annual increases, lifetime health coverage at negligible cost and other benefits far beyond those found in most private and public retirement plans.”

* “From 2000 to 2009, investment earnings failed in half of the years to meet an 8 percent [return] goal.”

* To solve the problems, “trustees are considering proposals to raise retirement ages, lower annual cost-of-living adjustments, shift a greater share of health costs to retirees and alter pension calculation formulas.”

Look, we’ve already seen this movie with corporate pension problems over the last decade. Countless plans failed … countless more were shuttered for current employees … and a whole mess of people lost important benefits there were counting on.

Plus, as I’ve noted in the past, the government’s backup insurance plan for these failed private plans is itself underfunded by many billions.

With these same issues appearing in cities and states from one coast to the other, a lot of folks have been asking if Washington will step in.

Well, if that New York Times article is any indication, the answer is yes — Washington may step in to LET state and local governments renege on at least some of the benefits they owe retirees!

It’s not like Uncle Sam really has a choice. In addition to owing private pensioners more than what’s in the kitty, there’s also that pesky issue of massive shortfalls in the Social Security program.

So What Can You Do to Protect Yourself?

It doesn’t matter if you’re a government worker or just a regular citizen … this national pension crisis is going to affect you — directly or indirectly.

It may mean a sharp decrease in your retirement benefits. Or it could reduce the public services available in your city or town. And it will almost definitely lead to higher taxes.

So I suggest you get as much information as you can on the rapidly developing state and local debt crises striking our nation … and learn how to hedge against these problems with new investments that are now available.

In addition, I consider it absolutely critical that build up your own income-generating portfolio as quickly as possible, preferably in tax-sheltered accounts.

I’m helping my own dad do this right now, because we recognize that his state pension is no more guaranteed than anyone else’s.

As the latest headlines demonstrate, past promises to retirees are no longer sacred and benefits are no longer guaranteed. So if you’ve been putting off your personal protection plan, please make it your first priority in 2011.

Best wishes,

Nilus

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.

This has been a tough year for us Geezers, but we still have much to be thankful for.  I would like to wish all of you a very Happy Thanksgiving.

During these challenging economic times, the truly important elements of our lives are thrown into sharp focus. Now, more than ever, it is important to remember to give thanks for all of our blessings, whether it is enjoying good health, the love and support of family and friends, or simply being thankful for a safe warm place to live.

When you sit down to Thanksgiving dinner, take a moment to express your appreciation for our men and women in uniform, serving both at home and abroad, who have volunteered to sacrifice time with their families to serve our nation and provide a warm blanket of safety to all of us. And while you are at it, give thanks to their families who are celebrating this Thanksgiving without them.

This Thursday, we should all reach out to those who are not as fortunate. Each of us has something to give, whether it is money, food, time or a smile to a stranger. The truest way to observe the season is as a celebration of service, and a commitment to lend a hand to lift up your neighbors and your community.

But most of all thank a loving God who has bestowed all of the great blessings we enjoy upon us.

You are probably thinking “If inflation is here, why didn’t we get an inflation adjustment on Social Security this year?” Well there are a couple of reasons. First of all the SSA doesn’t include food and energy in their calculations –and of course those are what’s going up. Who ever said our government was honest?

The other reason is the soft economy. Despite rising prices it is difficult to raise prices in a slow economy, so stores are having sales and making do with smaller margins.

What we have seen so far is nothing, however. Remember the Jimmy Carter days. This looks like it could be a repeat.  Rising prices in a slow economy had a name –they called it Stagflation.  If you look at underlying material prices you can get some ideas of what is coming.

• Industrial materials prices (copper, steel, zinc, etc.) are up 29% since July (See chart below)
• Cotton prices at the mill are up 90% to an all-time high. This will soon be reflected in clothing prices.
• Corn prices are up 30% in the past year. Corn is used in the manufacture of thousands of industrial, food and consumer products.
• Oil is now around $82 a barrel. That is up from the mid-60′s a few months ago. I have seen several credible forecasts that predict it will be over $150 barrel within the next year.
• The US Dollar has rallied a bit in the past week or so, but the long term trend is still down. A falling dollar makes imported products more expensive. Before long all those dollar stores who import cheap Chinese junk will have to start calling themselves Two-Dollar Stores.

Basic materials prices since July 2010

• Do not store metal cans on metal shelves.  Metals can react with each other and affect the integrity of the can
• Always check the expiration date and arrange your foods by expiration date so you are eating the oldest ones first
• You can store grains, flour and rice a few months beyond the expiration date if you are very careful.

1. Place the bags of rice and grains in your freezer for a couple of days. This will usually kill any vermin or eggs.
2. Keep them in their original bags and place the bags in Ziploc bags and squeeze out as much air as possible. Now place the Ziploc bags in sealed 5 gallon buckets (you can get these at Ace Hardware or get them from most bakers who give them away freely).
3. Before you seal the bucket sprinkle 1/2 a cup of Kosher salt in the bottom to soak up any moisture.
4. Another thing you can do is put a small piece of dry ice in the bucket just before sealing.  As dry ice melts it gives off carbon dioxide that can kill any little critters that are in the bucket.
5. You can also purchase food-safe oxygen absorbers [Bj5] available from food storage supply stores online.

• Almost everyone our age knows how to can. So buy any fresh vegetables or fruit you can find (Costco and Sam’s Club are great places to buy good quality fruit and vegetables in large quantities) and start canning.  This is a great activity to do with friends, family and neighbors. My late Grandmother used to have canning parties. Everyone would bring something different and then they would trade with each other so everyone had a nice variety.
• If corn and grain prices continue to rise then meat prices will follow.  Meat prices are already up this year but that could only be the beginning.  I was talking with my butcher and he told me his meat suppliers are predicting increases of 50% or more in the coming year.  The solution to this is a freezer if you live in an area with stable power.  But if you live anywhere that storms can knock out power for days at a time, you will want a generator or just store dried or cured meats.

So those are my tips.  If you want really good detailed information, here is a free eBook you can download: Prudent Storage Facts Version 4.0

The other thing you can do is convert some of your savings to silver and gold.  There is nothing that makes the price of gold and silver rise faster than inflation and a falling dollar.  Gold and silver are going through a normal price correction now, so there will be some good buying opportunities in the weeks ahead.

If any of you have ideas and suggestions on food storage, please leave a comment.