The AP reports that new retirees for the first time ever will receive less Social Security benefits than they paid during their careers.
This doesn’t even account for the loss in real value due to theft from inflation.
The world’s biggest ponzi scheme is nearing it’s Madoff moment. The only options are default, and QE to INFINITY.
People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It’s a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.
Previous generations got a much better bargain, mainly because payroll taxes were very low when Social Security was enacted in the 1930s and remained so for decades.
“For the early generations, it was an incredibly good deal,” said Andrew Biggs, a former deputy Social Security commissioner who is now a scholar at the American Enterprise Institute. “The government gave you free money and getting free money is popular.”
If you retired in 1960, you could expect to get back seven times more in benefits than you paid in Social Security taxes, and more if you were a low-income worker, as long you made it to age 78 for men and 81 for women.
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“Although historians do not advertise the fact, a lot of pension funds went bankrupt in the 1930’s, and the remaining ones had to scale back the amounts they had contracted to pay to their pensioners. Economists failed to offer an explanation for this universal phenomenon. Yet the explanation is clear: the accumulated capital of the pension funds was badly impaired, and in some cases completely wiped out, by the falling interest rate structure. Exactly the same causes are operating right now, (2010) and exactly the same effects will follow. The only difference is the larger scale of capital destruction in the present episode.” –Antal Fekete
In their futile attempt to preserve their Plantation Scrip wet-dreams, the ‘example’ of Argentina and other tin-pot dictatorships will be followed here in kind. Retirement accounts will be commandeered by government and cleaned out of all valuable assets to be replaced with their banknote denominated equivalence in long term ’Treasury Bonds’.
The only way you can beat social security is live a long, long time. And you better believe they know that. They feed the public from their corporate farms planted with the GMO crops(They don’t eat that stuff.) and then we wonder why we get sick and die. And if you don’t die soon enough they’ll be regulations that you can’t receive kidney dialysis or whatever over a certain age(75yrs in Britain) unless you are one of the elite of course. All for the cause of austerity and balanced budgets.
And who’s laughing? The global banking elite. Control the money and you control the world. In their mind it’s the right thing to do. Because they are superior in every way to the masses.
Social Security and Medicare? Peanut Ponzi returns and death panels. No thanks. Silver and gold works for me. Pat you are right. The SS trust fund is investing in ZIRP treasuries. This means the fund is earning about 1.3% instead of the 3.5% needed to keep the trust fund solvent. With $2.7 trillion in the fund it is being depleted much faster than even expected.
With unemployment at 16% reducing the tax payments, the wages of the average worker dropping, the tax waivers still in place as millions more going on permanent SSI disability payments (8.5 million and counting) I would be surprised if SS lasts another 10 years at most
There is no social security trust fund. It’s only a journal entry. They put a piece of paper in a filing cabinet in Virginia(Al Gore’s lock box) and lie to us that it is invested in some great and secure gov’t backed instrument all the while every cent received goes right to the federal government’s general fund to be spent immediately.
Social security is insolvent right now, not in 2030 as the PTB would have you believe. There is no separate gov’t fund. No nothing. They looted it a long time ago and are paying the current beneficiaries from the money they take in. No different than Madoff or Stanford trying to pay redemptions.
Having done quite a lot of research on Ponzi schemes they all have one thing in common. They all end very badly and abruptly. The one thing a typical Ponzi scheme does not have is a printing press. The government is unlikely to default, since they can just print or borrow.
If inflation runs out of control, people will rush for the exits. Even the most simple minded will ultimately understand severe inflation and it’s devastating impact. Poverty will ultimately ensue for the elderly who do not act in time.
Funny how this shift in funding almost perfectly coincides with the “official” start of the Baby Boomer generation retiring. Bastards!
One of the main reasons Social Security is being depleted so rapidly is because of Illegal Immigration. I am not only talking about those south of the border, I am talking about those here illegally from all over the world! They are allowed to rape and pilage the system consistently.
We have many of us? United States Citizens, mind you that were born in the United States or on a foreign soil to U.S. Solders living abroad. Yet when we retire and or apply for Social Security benefits, it takes way to long to receive them. So, I propose this. No matter how long you contributed to Social Security (like 40 years) we get a lump sum. It is all digital numbers anyway. Who are you kidding!
Take it out….I’ll take care of my own savings loading up the phyzz.
If they bought gold every week until they retired, they would have millions in gold to cash in for retirement. This applies now. Stack your precious metals weekly. By the time you retire this fat stack will be your pension, and no government involvement.
There will be no pension within 10 years. So do your pension privately now by stacking metal. As Gerald Celente quotes “Gold for my Golden Years”
There are simply not enough new generation people paying tax, to cover pensions for retiree (baby boomer generation). This whole pension scheme will collapse. I have also read that the Government has already “borrowed” all the cash in the Pension Coffers, The vaults empty.
USD down. Industrial output (slave labor) up….but dont worry, it will be made in America!
http://www.youtube.com/watch?feature=player_detailpage&v=l1YUNjJiTpE
2nd attempt…..
There is not much money in my social security trust fund even though I have been contributing for over 40 years. Each year I receive a statement from the government showing my accumulation but there is never any interest shown. I know inflation has really reduced the monies I contributed in the 70s, 80s and 90s. Yet I am not making any money on my “voluntary” deposit. However, the statement reflects that I am going to get back more than I put back in if I can live for at least 10 years after retirement. I wonder how they can do that??? Especially since my wife will also get a big chunk of the proceeds. I really like this social security.
By the way, would anybody like to buy some Amway? I am looking for some aggressive salespeople as well. Potential earnings are limitless.
UNSUSTAINABLE! No Social Security or Medicare will be there for me. If there is some left, I’ll consider it a bonus. LOL.
