Sunday, July 18, 2010

The Government and Banking Social Security Theft

How does one decrease the cost of labor in America?  Well first, you have to bust the unions.  Check.  

Then you have to create a pressing need for people to work - perhaps give them easy access to credit and then get them to go so deeply into debt that they will have to work until they die to pay them off.  Check.  

It also helps if you push up the cost of living by manipulating commodity prices.  Check.  

Then, take away people’s retirement savings.  Check

Lower interest rates to make savings futile and interest income inadequate.  Check

And finally, threaten to take away the 12% a year that people have been saving for retirement by labeling Social Security an "entitlement" program - as if it wasn’t money Americans worked their whole lives to save and gave to the government in good faith.  Check.

The practice of using every dollar of the surplus Social Security revenue for general government spending continues to this day.  The 1983 payroll tax hike has generated approximately $2.5 trillion in surplus Social Security revenue which is supposed to be in the trust fund for use in paying for the retirement benefits of the baby boomers.  But the trust fund is empty!  It contains no real assets.  As a result, the government will soon be unable to pay full benefits without a tax increase.  Money can be spent or it can be saved.  But you can’t do both. Absolutely none of the $2.5 trillion was saved or invested in anything.

That is how the largest theft in the history of the world was carried out.  300M people worked and saved their whole lives to set aside $2.5Tn into a retirement system that, if it were paying a fair compounding rate of 5% interest over 40 years of labor (assuming an even $62Bn a year was contributed), would be worth $8.4Tn today - enough money to give 100M workers $84,000 each in cash!  The looting of FICA hid the massive deficits of the last 30 years in the Unified Budget. Presidents and Congresses were able to reduce taxes on the wealthiest Americans without complaint from the deficit hawks, because they benefited. The money went directly from the pockets of average Americans into the pockets of the rich.

Now that it is time to repay those special bonds in the Trust Fund, we are inundated in opinion pieces in the leading newspapers and magazines complaining about Social Security and its horrible impact on the budget.  Government finances have been trashed by foolish tax cuts, unpaid wars, tax loopholes for corporations and the very wealthy, the failures of economists, the greedy search for greater returns in financial markets and the collapse of moral values in giant businesses but Social Security is supposed to be the problem that needs fixing…

Social Security is not "broken" the money is in the Trust Fund. But the people who manage the finances of the United States don’t want to repay the bonds held by the Trust Fund. They want to default selectively against average people, their fellow citizens, who paid their taxes expecting to be protected in their retirement.
more at Phil's Stock World


  1. And they know the people are older and won't do anything about it. Not that the younger people are going to do anything about it either. All these perfect storms coming together at once it is like the Chinese proverb (curse) may you live in interesting times.

  2. One thing I would add Kenny, if all else fails go for broke.

    Scientist in gulf likens dispersant to biological weapon. Shrimpers exposed develope ebola like symptoms of internal bleeding and through orifices. Beware of seafood!

    To use an old cliche from the 60's this is getting heavy!


    Oil Industry Whistleblower Reveals BP and Halliburton Could Have Shut Down “The Gulf Oil Gusher" in One Week

    An Oil Industry whistleblower (who wishes to remain anonymous to preserve health and peace of mind) has revealed to UFO Digest that BP's priority never was to shut down the blowout and seal the Macondo Well, but to repair it to reap profits.

    The whistleblower, Neville Dragon (not his real name) states emphatically:

    “They had the proven technology to do that sitting on a shelf at Baker Hughes OilWell Tool Company(a division of Halliburton) in Houston.

  4. this is a bigger screwing for the
    reg/working man then "tarp",plus the working man is getting it from every angle (like obama & bush refused to close the mexican border!