The Fed Is Systematically Destroying Social Security And The Retirement Plans Of Millions
The Social Security trust fund needs to earn interest to achieve levels that will preserve it till 2033; with interest rates close to zero, the trust fund is projected to be depleted ten years earlier – by 2023.
By law, the money deposited in the SS trust fund must be invested in U.S. government securities…In order for SS Ponzi to work, the trust fund, invested in government securities, needs to produce healthy returns. It won’t; it can’t. Thanks QE-genie Bernanke
Social Security Card (Photo credit: 401(K) 2012)
I learned years ago that Social Security is a Ponzi scheme which would have failed and collapsed (like all of them do eventually) except that it is enforced at the point of a gun.
I remember a conversation with my father-in-law about this. My company was paying a lot of money into Social Security, and he had just started drawing “his money” out. I suggested, tongue-in-cheek, that since it was my company’s money he was getting, why not just let me write him a check directly and save all the trouble of the round trip to Washington.
He was outraged! I mean, his face got all red, and he blustered and fumbled. He could scarcely believe his ears. His favorite FDR program – which was working “so well” he assured me – was being gored, logically, by one of his (not-so-bright) students! But he had no answer. And that ended, for all time, any further conversations about the matter.
Michael Snyder, of Economic Collapse, explains that low interest rates are devastating Social Security, and hastening its eventual demise:
By keeping interest rates at exceptionally low levels, the Federal Reserve is absolutely crushing savers and is systematically destroying Social Security.
Of course, financial viability was never a concern with Social Security. The bulk of the payouts would be coming from payroll taxes and not from earnings. But every little bit helps put off the day of reckoning. That day is getting closer.
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