The Wall Street Journal reports the Social Security program's costs will exceed its income this year for the first time since 1982, forcing the program to dip into its nearly $3 trillion trust fund to cover benefits. This is three years sooner, WSJ tells us, than was expected just a year ago.
This is all frivolous nonsense. The Social Security system is the same system as the "income tax." Social Security is paid out of created credit money. It is not any sort of "trust" and it is not "funded." It is not an accounting discipline so accounting terms cannot accurately be attributed to it. It's a Ponzi scheme. "They" can print the money so Social Security will not go broke, but the "money" paid out will go broke in purchasing power.
The U.S. government sets the deception with the Consumer Price Index. They have taken out food and energy cost as if nobody eats or drives their cars or heats their home. This way they cut their pay increase for millions of people on Social Security.
Stories about Social Security going broke or checks not going out is a political myth. They whip retired people to death with horror stories about Social Security. They scare the workers into bigger deductions from their paychecks. Doesn't this smack of class warfare, ie. workers vs. retirees/young workers vs. older workers?
Once again, Social Security is a credit system just as is everything else in America. Since the government and Federal Reserve money monopoly creates unlimited credit, somebody tell me how it can go broke. Anybody who understands modern money (bank credit) knows this to be true. Your money may go broke, but Social Security won't. You will get your check, but what you can buy with it in future years is the question.
Social Security was never funded. For anything to be funded there has to be money of account. There is no money of account in the United States (or the world) and there hasn't been since 1964 (the end of silver as money). We only have a credit system symbolized by imaginary numbers for money. There is no such thing as funding anything with imaginary numbers except in propaganda.
To be sure, there is a huge problem with Social Security, but it has nothing to do with funding it. The population is aging. More and more people are drawing Social Security.
This means that retired people are consumers and nonproducers. In Keynesian economic theory, there has to be a limited number of consumers. This is mathematically obvious under any economic system. But it is an absolute under a credit system such as we have now. Here's why. Government (Federal Reserve) issues (creates) credit which is really just abstract numbers. With this credit, government consumes and with time government owns everything. Government literally steals the wealth of the country.
But here comes a huge aging, nonproducing, consuming, retired population. They all get Social Security (credit) with which they consume larger and larger percentages of the national wealth. In other words, the wealth that the government has stolen with "money" that it created is now reversing in huge amounts to an ever increasing retired population. Now this is a real problem for government and its politicians. Oh no, they don't dare voice it as I have. They use instead the "bankruptcy" scare.
What will government do? More and more "benevolent" ways to help you expire when you retire must be found. The aging population must somehow be reduced. At first, society is taught to "pull the plug" on terminally ill people. Next, people who are sick and tired of living are "encouraged" to die.
For the rest, various schemes will be devised. They will continue to raise the age at which you can take your Social Security. They will raise taxes to tax more and more of their Social Security, funnelling more and more retired people's wealth into the "healthcare crisis" or other government flimflams. Benefits will be cut.
The government population planners may decide to inflate the purchasing power of Social Security checks out of existence, thereby impoverishing the retired population. This would be a subtle scheme and nobody could directly blame the government. There is plenty of precedent for this. It is not a novel and new idea that I thought up. If we doubt that government would do this, we have been under the ether too long.
It is obviously political suicide to directly attack Social Security, but government can inflate it out of existence. The more the people consume, the less the government can consume. As long as you get your check and don't spend it, there is no problem. But when you consume with it, the problem appears. Production has to be balanced with consumption or the system collapses.
The money creators have plunged the world into great misery. They depend on ongoing deception because they do not have any way out except more money creation (inflation).
But increases in the quantity of money will not enrich the world. It will, however, impoverish the savers and the middle class.
If by chance the government is able to inflate, they will bring us an inflationary depression. This ruins everybody, especially people on pensions and fixed incomes. The government Social Security has almost stopped indexing raises under one pretext or another already.
An inflationary depression will destroy savings while raising the cost of everything — the worst possible event.
The only refuge in this environment is real money: gold and silver coins and bullion. Gold and silver is the only final recourse to currency destruction. It's only a matter of when we choose to recognize this fact.
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