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16 thoughts on “Social Secutity: Muffling the Warning Bells

  1. LCRonMar says:

    A truth, fact from real history is that LBJ was the first to open and raid the Social Security "Lockbox." He did so to help fund his Great Society social welfare programs primarily for no- to low-educated people who did not want to work so did not do so, and the Southeast Asia War that he inherited from JFK along with The Best and the Brightest* – Ivy League-educated idiots – who got us into that Quagmire* then precluded by wrong policies and civilian interference our military from winning the war quickly. Once a decision is made to commit our young people to war fighting as an option of national policy civilians including the president have no business trying to run the war. That is best left to the military professionals who are in the fight alongside their young troops and usually have been in war themselves.

  2. ken1lutheran says:

    It was a Ponzi scheme from the first. It was always based on the idea that those who came after would pay for the Social Security of those who came before, and it could only work as long as the assumptions on which it was based held.

    Life expectancy went from 69 when the bill was passed to the upper 70's today. That's ten years of benefits per person the system wasn't designed to cover.

    The Disability Income benefit was added. Millions of people began receiving their benefits long before ordinary retirement age.

    Early retirement at 62 was added. Cost of living adjustments were added that were not necessarily offset by increased revenues–the "stagflation" of the Carter years was a body blow. The Medicare benefit was repeatedly expanded, but the Medicare premiums did not keep pace with increases in benefits or with the cost of health care. It's a mess.

  3. Education Needed says:

    If people don't understand money, and the majority don't, then how will they understand trust funds, borrowing or anything else? Simply? They won't. Yet, they vote! How does that work now?

  4. For those Americans who are awake to reality, know we are at the end of the road. Thomas Jefferson said America as a democratic republic would only last 400 years. Sadly we didn't even get close to that timeframe. In short order, America becomes a Marxist State. There will be blood flowing in the streets. The blood of citizens. History shows us that America was simply an experiment that is failing.

  5. Mary Rice says:

    I disagree with your original pemise. Having lived thru most of that I remember that the collections of FICA funds and the earnings they created for the fund were to fund the beneficiaries. If the fund had not been robbed of the corpus of the funds, SS would be solvent; however, that is not the case! And, you are absolutely correct that it is a mess and no politician wants to put his vote on the hard decisions that should be made because the cuts and limitations will hurt. Actually, the 3 or 4 billion dollars just promised by Obama to Africa and the funds we are sending to the Brotherhood in Egypt and elsewhere would go a long way in easing the pain of Social Security if these funds were applied there. Not happening!

  6. WhiteFalcon says:

    The fact of the matter is that all tax money is put into the General Fund, directly or indirectly. I believe that it actually goes to the Fed and then the fed "loans" money to the Government. All this is going to come crashing down sometime in the next fifty years or less, and it will be the beginning of the next dark age. I won't be here to enjoy that but many of you folks will, and you will have the so called "liberals" mostly to blame, but the people themselves will not be blameless because they voted the idiots into power. Nothing is forever, and neither is the USA.

  7. WhiteFalcon says:

    There is no "Social Secirity Trust Fund." That was a scam from the beginning, but Lyndon Johnson took all the money that was in Social Security to finance the Viet Nam war in 1968. Thanks dumbocrats.

  8. Fact is it has always been a scam. People we suppose to die before and not long after becoming eligible. It was suppose to be a tax that most people would either not live to be old enough to collect or collect very shortly before death. This was a special way to give the government even more money. The fact is they promised a standard of living equal to what you had while working….. does anyone get this from this scheme….NO! They said it was only going to be 1% and that would cover it all….. has it NO! It is now over 12%.

    We the people should be able to go after the politicians and the families and descendants when they lie and cost us so much.. This was just a looting of the working class.

  9. IF congress kept it paws off the money of the Social Security Fund to begin with and none of the Social Security Fund was never used for illegals as an instrument for financial help, chances are the Social Security Fund would still be well funded and doing just wonderfully. BUT, that did not happen. Instead, the congress said; "We are borrowing the money – It will be paid back." The 1st time was a blantant lie. Since then its been just more of the same – One blantant lie after another.

    The fact remains, the fund is not running out of any money. Reality is, our congress stole the money then tells We The People we are running out. Yet, they expect We The People to trust then. I say no @#$%^&*[You fill it in any way you like] way.

  10. Did yo know that this year widow's benefits were raised! My aunt, who has been a widow for many years, was telling me how here check amount went up by quite a bit this year. She did not understand why.

    Another relative recently became a widow. I asked her if she would choose to get her late husband's SS or her own. She said that they told her she could have his plus half of her own! She will now have more than 3/4 of the amount that formerly had to provide for two of them, plus their retirement savings and pensions as a back-up. How is this sustainable????

    Is this the Democrats quietly buying the votes of widows? It may not work because the widows may not equate the increase with the Democrats who are in office.

  11. A child reading two levels below grade level is "disabled" and entitled to social security! (learning disability)

    Many kids legal –or not– are receiving this "benefit"

    Remember Octomom? the lady with the 14 kids? She funded her plastic surgery with the social security benefits of her "disabled" kids.

    Any legal immigrant from any country can bring in their grandparents here for free social security for life. For a couple, it is something like $2k per month, yet these people have never paid in. Then it's on to "free" housing, medical care, etc

    The system is designed to fail

  12. As I understand it there never was a trust fund. In the 1960's as a child I heard about the "trust fund". In the 1970's I remember reading that the Feds had been grabbing up and using the funds from the Social security Act, a law derived from Roosevelt's New Deal project of the 1930's. From the very beginning various federal governments have raided the funds to finance various pet projects. After a number of such raids the government the fund began relying on the current crop of FICA payees to finance the payments to recipients. I believe this is called a pyramid scheme where income from the bottom layer pays off the top layer of investors, in this case FICA payers supporting retirees. The problem with this set-up is that there comes a time when the bottom layer can't support the top layer and it all topples. We are seeing that starting to happen now. It could have worked but for the meddling and greed of our wonderful politicians.

  13. radman414 says:

    “Welfare is one of the worst scams the left has pushed on America. It is a subsidy for poverty. One of the fundamental laws of economics is, anything you subsidize, you get more of. Thanks to the liberal politicians, we now have more poverty.” – Judson Phillips, April 8, 2011. Welfare spending is now the second-largest item in the federal budget, after the Department of Health and Human Services. It cost the taxpayers $888 billion in FY 2010 alone. This level of spending is irresponsible, counter-productive and unsustainable in our current economy. [cont.]

  14. radman414 says:

    The “war on poverty” has been the biggest failure in American history. “The Wall Street Journal reported this week that, according to the latest census data, 48.5 percent of American families now are on the receiving end of some sort of government program, the highest percentage in our history. To provide some perspective, this figure was 10 percent in the 1920’s and a little over 30 percent in 1980. During the 1960’s, a watershed decade when the infantile culture of narcissism began to subsume free adult culture in America, more government programs were born than in any other period. By 1980, four of these programs from the 1960’s – food stamps, Pell grants, Medicare, and Medicaid – accounted for 164 billion dollars in annual spending. Today these four programs swallow almost an additional trillion dollars.” — Star Parker, More from the Culture of Narcissism, Texas Insider, 10/10/11. [cont.]

  15. radman414 says:

    In their perpetual quest for re-election, here's what our leaders in government are deliberately ignoring:

    “With respect to the words ‘general welfare,’ I have always regarded them as qualified by the details of powers (as enumerated in the Constitution) connected with them. To take them in a literal and unlimited sense would be a metamorphosis of the Constitution into a character which there is a host of proof was not contemplated by its creators. I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents.” – James Madison

  16. Don MacDermid says:

    Following is an article published April, 2013 – pass it on & use it to purge corruption from government – Annuity math tends to eliminate the BS. I have simple MS EXCEL spread sheet programs for what if & most any scenario regarding SSI, CPI inflation-deflation, for non profit use – easy to put on website – will generate a lot of "uncomfortable" politicians ::

    Executive and legislative officers of government are bound by oath to “bear true faith and allegiance…”; “support and defend the Constitution against all enemies, foreign and domestic… faithfully discharge the duties of the office…”! The Constitution and statutes are written covenants of government officials’ fiduciary obligations to citizens!

    Those officers, in their fifth year without a budget, spending oversight, or restraint; continue mocking covenant obligations while the nation is collapsing in $16 trillion debt with hundreds of trillions more “missing” from government and private pension trusts! Groundswells of officials fraudulently continue blaming Social Security “entitlements” for their treachery!

    The SSI history website quotes “Actuarial studies… sufficient reserves in the account to pay anticipated benefits… established an “earned right” to the eventual benefits… a legal moral, and political right to their (benefits)… (emphatically) no d$%# politician can ever scrap my social security system”. SSI-MED are trust fund fiduciary covenants, not pocket change! Undeniably, “SSI Trust Funds” have been plundered from within government. Counterfeiting currency and bonds to devalue SSI and other debt repayment obligations is fraud. Overloading the system with aliens is fraud! Breach of oath is the norm, not outrageous!
    Annuities using SSI actuarial data (2011) absolutely proves average workers pay for 4.8 combined SSI retiree/other benefits ($1,311,588/$273,192)! The average wage @$43,500, @12.4%SSI deposits $449.50/mo. over 552/mo. from 18 to 65bd, pays $248,124 over 46 years, @5% grows to $963,005. That pays back $8,408/mo till death @78bd ($1,311,588 total)! Interest on $963,005 would pay $4013/mo. FOREVERMORE! SSI pays $1,235/mo. until death (78bd average $192,660 total)! Additional other SSI benefits (41.8%), increases combined SSI benefits to $1,751.23/mo., $273,192 payback (20.83% of the annuity)!
    AVERAGE CITIZENS LOSE $1,038,396 ($1,311,588- $273,192) because SSI principal (deposits) are plundered! Officials create inflation to systematically devalue currency based principal (bonds) into pennies on the dollar! That fraud is compound by counterfeiting currency & bonds (no incremental tangible wealth)! Government’s CPI Index proves 1966 principal dollars were devalued to fourteen cents purchasing power in 2011. 85.6% of your purchasing power “disappeared"! One dollar saved in 1966 to buy grandchildren 10 candy bars 46 years later, won’t buy one “fractional weight” bar today!
    Assuming 60 of 78 years is the SSI worker-retiree population (76.92%) and 315 million citizens are half funded @$1,311,588 (38.46%), that fund would be almost $159 TRILLION, to $106 trillion if only 2/3 qualified! Because officials intended to pilfer roughly 80% of every dollar they collected for your retirement (1-$273,192/$1,311,588), their fund balance might be $32 to $21 trillion. Reality is their tidy 2010 OASDI Trust Fund $2.4 trillion ending assets (reconciled by $2.3 trillion 2009 assets, $0.7 revenue, minus $0.6 expenditures; plus 4.6% to 5.5% past 5 year interest). Therein, fiduciary relationships of trust, honesty, or even ignorance implode.
    Official and media claims 2.8 to 3.9 workers are paying for SSI retiree benefits! That defines the criminal Ponzi scheme process officials used to loot $159? trillion!! Instead of getting a $1.3 million capital trust savings benefit at retirement (a legal, political, moral, and earned right), “officials” steal almost 4 worker deposits to pay one combined retiree benefit ($1751.23/$449.50/mo.), essentially nothing is from “trust funds”! Unlike Madoff, who is in prison, officials simply continue raising taxes, while calling citizens cheapskates & thieves!
    The only way to stop this heinous crime is by honesty, prosecution, and jury trial! Set SSI tax @2.583% total with 5% net interest (plus inflation) to permanently fund SSI at existing benefit levels. Maintain remaining 11.6% separately, until SSI is solvent! Until then, zero non-critical spending! Stop and prosecute counterfeiters and treasury-banking system looters! Recover the “loot” with treble damages and heavy fines. Pass it on….