Grumpy Editor

Tiny increase seen in 2017 Social Security monthly checks

Seniors receiving monthly Social Security checks will continue to be squeezed as announcement this week of 2017's cost of living adjustment (COLA) is expected to be a slim 0.3 percent --- or even 0.2 percent --- lowest annual increase on record, forecasts Grumpy Editor.

Eating into that tiny raise, amounting to a few dollars a month (following no COLA for 2016), will be a boost in Medicare Part B premiums for about 39 million people 65 and up.

Medicare part B covers doctors' visits and outpatient services.

The Bureau of Labor Statistics averages consumer price indexes from July, August and September to determine next year’s COLA for Social Security and Supplemental Security Income recipients.

As comparison, the 2015 COLA was 1.7 percent.  It followed increases of 1.5 percent for 2014, 1.7 percent for 2013 and 3.6 percent in 2012, after two years with no raises.

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE...

While media usually use the word "allegedly" in reporting an incident or event not confirmed, that word is missing in most of the vast coverage of Donald Trump and womens' claims of inappropriate behavior.  "Let’s be clear on one thing, the corporate media in our country is no longer involved in journalism --- they are a political special interest no different from a lobbyist,” says Trump in a  speech in West Palm Beach, Fla. “Their agenda is to elect crooked Hillary Clinton at any cost, at any price, no matter how many lives they destroy"...An Associated Press story out of Los Angeles reports on a fire at a 15-story home for seniors that left three elderly residents with burns and smoke-inhalation injuries --- but fails to pinpoint the exact location in the vast metropolitan area...A new Rasmussen Reports survey finds just 29 percent of likely U.S. voters trust media fact-checking of candidates’ comments while 62 percent believe news organizations skew the facts to help candidates they support...What are military commanders reading these days? A new 72-page volume via the Pentagon covers: “Transgender Service in the U.S. Military: An Implementation Handbook”…HP Inc. (the former Hewlett-Packard Co.) plans to cut 3,000 to 4,000 jobs within the next three years…In a Wall Street Journal newsroom overhaul to cut editorial flab, Editor-in-Chief Gerard Baker advises staffers that unnecessarily long stories would be trimmed amid a focus on digital journalism.

 

A headline over an Associated Press story in the no-kidding department from Washington:

       Government says colder weather will boost winter heating bills

While seniors’ COLA flat in 2016, illegal teens get $17,613

Social Security recipients, who saw no increase in benefits for 2016, will be interested to learn that President Obama has budgeted $17,613 for each of the estimated 75,000 Central American teens expected to cross illegally into the U.S. this year, Grumpy Editor learned from a Washington Examiner story.

That’s $2,841 more than the average annual Social Security retirement benefit of $14,772.

The Examiner pointed out the total bill to taxpayers is $1.3 billion in benefits to "unaccompanied children," more than double what the federal government spent in 2010, according to an analysis of the administration's programs for illegal minors from the Center for Immigration Studies. 

What’s more, added The Examiner, “the administration is also spending heavily on a program with the United Nations to help the illegal minors avoid the dangerous trip by declaring them refugees and handing them a plane ticket to the U.S. where, once here, they get special legal status.”

Meanwhile, U.S. seniors have been coping with rising costs in rent, medical care, prescription drugs and other items.

 

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Overshadowed by extensive political coverage:  U.S. employers added just 160,000 jobs last month, well below the average gain of 243,000 in the prior six months.  Also missing among top headlines:  The economy expanded at an annual pace of only one percent in the past six months...TV newscasts gave ample coverage to President Obama holding a glass of Flint, Mich., city water, subject of contamination reports for weeks.  Motioning the glass, as in a toast, toward news folks, he then took what looked like a quick sip of the contents --- or did he really take a swig?  Associated Press noted the president "coughing several times during his remarks"...The Chinese surpassed the U.S. in spending on business travel last year with $291.2 billion compared with $290.2 billion spent by their American counterparts, according to a report from the Global Business Travel Association and reported in USA Today...In an international push, look for the Los Angeles Times to build overseas bureaus in Hong Kong, Lagos, Mexico City, Moscow, Mumbai, Rio de Janeiro and Seoul...The Justice Department said it no longer will call people “felons” or “convicts” after they are released from prison because it is too hard on them emotionally...The Tampa Tribune was acquired by longtime rival Tampa Bay Times (formerly the St. Petersburg Times).  Tribune subscribers will now get the Times, making it the country's fifth largest Sunday circulation newspaper...The U.S. lost about 191,000 jobs in the coal mining industry since September 2014 including about 7,000 that were lost in April, according to the Bureau of Labor Statistics.  That followed a 10 percent drop in coal production last year and the Energy Department predicted a 16 percent decline this year, biggest one-year drop since 1958...NPR reported eight in 10 Americans haven’t figured out what they’re having for dinner by 4 p.m...Officials voted to change the name of Bob Hope Airport (named after the famous comedian since 2003) to Hollywood Burbank Airport in an effort to increase recognition with passengers outside of Southern California...NewsBusters pointed out that in a nearly 20-minute live interview with Hillary Clinton, "MSNBC host Andrea Mitchell spent a mere 17 seconds asking the Democratic frontrunner about the ongoing e-mail scandal."

 

Grumpy Editor noticed CNN has a bad habit of indicating what is on the screen is "live" when it is not.

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With 'muted' inflation, seniors 2015 COLA: 1.7 percent

While growing inflation was indicated just four months ago, that "dragon" has vaporized with today's announcement that the 2015 cost of living adjustment (COLA) for Social Security recipients and others will be 1.7 percent, the fifth time in six years that the COLA was under 2 percent, notes Grumpy Editor.

Some seniors faced with higher costs in vital areas such as health care, utilities, car insurance, groceries and airline travel are raising eyebrows over the Bureau of Labor Statistics tally.

The 2015 COLA compares with increases of 1.5 percent for 2014, 1.7 percent for 2013 and 3.6 percent in 2012 following two years with no raises.

The BLS averages consumer price indexes from July, August and September to determine next year’s COLA for about 60 million Social Security and Supplemental Security Income recipients.

As recently as May there were indications of higher inflation.  That's when the BLS announced year-over-year gain in the consumer price index for the 12 months ended in April jumped to 2 percent.

A June 13 headline in The Wall Street Journal read:  Inflation "Dragon" Shows Signs of Stirring.  Two days later, Associated Press reported “evidence that inflation is ticking up from low levels.”

After the BLS released figures on June 17 that showed the CPI rose 2.1 percent over the prior 12 months, media reported indications point to “a burst of higher inflation.”

That’s when John Ryding, chief economist at RDQ Economics LLC, said, “we’ve got an inflation rate that’s been rising more than the Fed expected."

Those June reports came as an early indicator that Social Security recipients might get an improved COLA boost for 2015.  But, as with the weather, clouds suddenly began to appear on the horizon.

In July, the BLS said consumer prices rose 1.6 percent from a year earlier --- down from 2.1 percent it reported just a month earlier. 

Then in late August word was put out that most signs point to “benign inflation pressures.”

Going into September, media resurrected use of the long-used "tame" in referring to inflation.  At month's end, Federal Reserve Bank of Chicago President Charles Evans said inflation was "stubbornly low."

Inflation took a back seat last week when the "risk of deflation" phrase made a reappearance with reports of slowing global economic growth.

Fed figures vary as S.S. COLA calculation time nears

Financially squeezed retirees will be observing prices closely in the July-August-September quarter, since that’s the period the government bases its cost of living adjustment (COLA) for Social Security payments starting in January and already June figures --- released three days apart last week from two government agencies --- showed some wide variations as eyes are fixed on inflation that is quietly stirring on the sidelines, notes Grumpy Editor. 

Focusing solely on the vital food element, the U.S. Department of Agriculture (USDA), while emphasizing to media that overall food inflation will remain near the historic norm this year, went on to somewhat contradict itself by mentioning:

■  The drought in California, a prime source for supermarket products, “could potentially have large and lasting effects on fruit, vegetable, dairy and egg prices” while drought conditions in Texas and Oklahoma “could drive beef prices up even further.” The USDA predicted wholesale beef prices advancing 8 to 9 percent this year with pork prices jumping 10 to 11 percent.  In contrast, the Bureau of Labor Statistics (BLS) said, “dairy and related products turned down in June.” 

■  Before the lack of irrigation water in California smacked vegetable crops, thus boosting prices, the USDA expected 2.5 to 3.5 percent “food inflation” this year. 

■  Also facing higher prices:  fish and seafood due to decreased supplies of some species and higher consumer demand. 

■  News from the BLS cited food costs, after surging in recent months, slowed to a tiny 0.1 percent rise in June from the prior month when it gained 0.5 percent.  That, added the BLS, put June with the smallest monthly increase since January and thus lowered the annual increase in food prices to 2.3 percent from 2.5 percent in May.

Into the final COLA mix, of course, also goes medical, energy, shelter, apparel, new vehicles, among other items.  (CPI-W is the basis for the 2015 Social Security COLA, stemming from the third quarter.) 

The latest tally put the consumer price index on all items in the 12 months to June up a rather modest 2 percent --- with the BLS noting (contrary to the USDA report) “the food index decelerated in June.” 

A Rasmussen Reports survey earlier this month revealed 88 percent of U.S. adults said they are paying more for groceries this year than in 2013.

 

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Major media aren’t on to this yet:  Some young illegal border crossers are being transported around the country by --- U.S. Coast Guard aircraft…Grabbing much media attention (especially broadcast news) last week was the report of a female burglary suspect, 28, who was shot dead outside the home of an 80-year old man in Long Beach, Calif. after she allegedly shouted, "Don't shoot me! I'm pregnant ---I'm going to have a baby."  However, there was little follow up following word from the coroner Friday that the woman was NOT pregnant...Attention news release writers:  Chicago-based communications firm Greentarget noted journalists are bombarded with press releases, with 45 percent of them getting 50 or more a week while 21 percent receive at least 100 --- with the majority of recipients spending less than 60 seconds looking at them…New York Daily News trimmed 17 more newsroom staffers…Another HOA in action:  Lake of the Pines Homeowners Association, Auburn, Calif., told a Vietnam War veteran who --- for a decade --- has been building furniture in his garage and giving it to needy families to shutter his activities or be fined between $100 and $1,000.  “I don’t make a profit. The money I spend is my own money, my own time and talents,” said Dennis Kocher …In the “huh?” department:  Pentagon operations in the U.S. and overseas are threatened by climate change.  "The effects of the changing climate affect the full range of department activities, including plans, operations, training, infrastructure, acquisition and longer-term investments," said Daniel Chiu, a deputy assistant secretary of defense…Congress departs on a five-week vacation this week.  A key reason not much has passed:  Senate majority leader Harry Reid (D-Nev.) has 330 bills piled up in his office…Associated Press reports that after spending nearly $300 million on a new computer system to handle disability claims, the Social Security Administration still can't get it to work --- and officials can't say when it will.  AP mentioned Maryland-based Lockheed Martin was selected in 2011 as the project’s prime contractor…Alan Murray moves into the editor’s office at Fortune magazine on Aug. 25.  He was president of Pew Research Center in Washington, D.C., and earlier worked at The Wall Street Journal and CNBC.

 

A steamy TV spot for Carl’s Jr. and Hardee’s pairs swimsuit model Hannah Ferguson and actress-entertainer Paris Hilton promoting the Texas BBQ Thickburger.  Yes, it employs the old soaping down a big, muddy pickup truck routine and munching on the monster sandwich.  See the footage here.

 

Benghazi night/Obama in White House saga continues; AARP's CEO warns seniors about proposed chained CPI

The much-discussed whereabouts of President Barack Obama on the night the U.S. diplomatic post in Benghazi, Libya was attacked Sept. 11, 2012 popped up again via Roger Ailes, Fox News chairman and CEO, and chairman of Fox Television Stations Group, notes Grumpy Editor.

In receiving a $250,000 award last week from the Bradley Foundation, Ailes’ acceptance speech included reference to the Benghazi attack that resulted in the deaths of four Americans, including Ambassador Chris Stephens.  

 “I’ve come to the conclusion that I don’t even care what the president of the United States was doing that night,” Ailes said. “However, I would like to know what the commander-in-chief was doing that night” --- which yielded applause from the audience.

Meanwhile, a photo, presumably shot on Sept. 11, 2012, resurfaced last week after its first release, without much fanfare, in early January.

The caption read: “Denis McDonough, Deputy National Security Advisor, left, updates the President and Vice President on the situation in the Middle East and North Africa. National Security Advisor Tom Donilon and Chief of Staff Jack Lew are at right.”  All five are standing.

Strangely, Benghazi or Libya are not mentioned in the caption.  The photo shows Donilon holding a red file folder.  Lew and the president have hands in pockets.

However, details are given on the camera used by official White House photographer Pete Souza: a Canon EOS 5D Mark III.

See the photo here.

Obama departed Washington the following morning (Sept. 12) for a Las Vegas fundraiser.

 

'Chained CPI' means less COLA for seniors

The phrase “chained CPI” and what it is all about made its debut --- with little comment from most print and broadcast media --- after President Barack Obama’s budget plan was formally announced on April 10. 

It deals with a proposed change in the formula for the annual cost of living adjustment (COLA) that will negatively affect millions of older Americans receiving Social Security and Supplemental Security Income (SSI) benefits. 

Now, AARP’s CEO is alerting members that if enacted it “means cutting Social Security benefits by $127 billion over the next 10 years.” 

In a message to members of AARP (formerly known as American Association of Retired Persons) Addison Barry Rand warns:  “Can you afford to lose $14,076?,” pointing out “that’s what the cumulative cut in Social Security benefits will be for the average retiree by the time they reach 90.” 

Replacing the traditional consumer price index (CPI), long used in calculating the annual COLA, by chained CPI will cut yearly benefit increases. 

Social Security and SSI recipients grumbled when this year’s COLA barely rose to 1.7 percent, about half of last year’s 3.6 percent.  

The chained CPI “is not fair to you, me or other Americans,” declared Rand in this month’s message.

That caution communication from AARP’s CEO is in contrast to support of ObamaCare at a November, 2009, press conference when Rand proclaimed: “AARP is proud to endorse the Affordable Health Care for America Act."

 

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