Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Category Archives: Inflation

Social Security a “Shell Game, There Is No Money in the Trust Funds” Says Head of Accounting Think Tank

This article was published by TheNewAmerican.com on Friday, September 3, 2021:  

Sheila Weinberg, the founder of the non-partisan think tank Truth in Accounting (TIA), spoke the truth. In an interview with the Epoch Times on Thursday she said, “Our bottom line is the [Social Security] trust funds are all a shell game; there is no money in the trust funds.”

What resides in those trust funds for Social Security and Medicare are debt securities. The “premiums” workers have been paying in are immediately spent to fund the government, but to keep the scam from blowing up, the Treasury Department issues IOUs to the Social Security Administration — promises to redeem them at some undetermined time in the future.

These are not assets. They are liabilities.

Weinberg, who founded Truth in Accounting (TIA) 20 years ago, explains that “the federal debt [estimated currently at $28 trillion] only tells us what the government owes the public. It doesn’t take into account what’s owed to seniors, veterans and retired [government] employees.”

According to TIA, the real federal deficit exceeds $133 trillion, reflecting the unfunded and unaccounted shortfalls of $41 trillion in Social Security promises and $55 trillion in unfunded Medicare promises. The balance includes publicly held debt, pension and retiree healthcare liabilities, and other liabilities.

The report from the Board of Trustees of the trust funds collecting and paying out Social Security and Medicare benefits that was released on Tuesday said that, thanks to COVID and the related economic shutdown, those funds will be exhausted sooner than expected. But they were hopeful that Congress would come to the rescue by “increasing revenue from workers and employers … and lowering benefits for some or all beneficiaries.”

U.S. Senator Mike Crapo (R-Idaho), ranking member of the Senate Finance Committee, said that report “once again identifies unsustainable benefit promises.… The Hospital Insurance trust fund is projected to be exhausted around 2026.”

But there’s little chance, says Crapo, of Congress taking up the issue:

While bipartisan efforts are necessary to make needed changes to address Medicare and Social Security’s long-term financial challenges, most Democrats want only to expand benefit promises further.

These welfare-state programs cannot be fixed. They can be kept from failing, but fundamentally they are flawed. In 1997, Congress, at the last minute, rescued them from extinction by making some surface changes: raising taxes and delaying the payment of benefits. “Since then,” said Heritage Foundation Senior Fellow Doug Badger, “there has been very little interest among leaders of either party in entitlement reform. Until that changes, politicians will continue to promise benefits that the government can’t deliver.”

At bottom, the scheme is a tool of the devil, wrote Michael Rozeff:

When we call upon the state and its power to do what we should be doing, we unleash destructive forces that wreck society….

 

Abandoning responsibility in favor of the state uncorks a bottle with an evil genie: the power and domination genie.

 

Call it a devil or Satan … because that is what it is.

Indeed, the concept of government-funded social security violates both the Eighth and the 10th Commandments: 8) Thou Shalt Not Steal; and 10) Thou Shalt Not Covet. As Gary North noted in his book Inherit the Earth, “The [Eighth Commandment] doesn’t say ‘You shall not steal, except by majority rule.’”

Rozeff claims that Social Security is not only fundamentally dishonest (like a Ponzi Scheme that pays benefits to one generation with funds extracted from an earlier one), but it also forces individuals to lose some of their essential humanity:

If we ask Congress to extract 15 percent of everyone’s pay and transfer it to people over a certain age, we abandon all of this which is so essentially human.

 

We abandon all good sense, which includes the exercise of our moral senses of worth and judgment….

 

This is what Social Security is: both irresponsible and inhumane. It is a program by which we abandon central human capacities and resort to brute force and arbitrary rules as substitutes.

Social Security cannot be “fixed.” Its ultimate demise can be delayed, usually at the last possible moment by an act of Congress, but its fundamental flaw — taking money from some who earned it and giving it to others who didn’t — remains.

The Fed Lies. Inflation Is Here and It’s Going to Get Worse, Not Better

This article was published by TheNewAmerican.com on Monday, May 10, 2021:  

In its Beige Book, a summary of the U.S. economy published eight times a year and largely based on anecdotal evidence, the Federal Reserve claims that recent price increases are “partly attributed to ongoing supply chain disruptions, temporarily exacerbated in some cases by winter weather events.”

Its authors are lying.

Keep reading…

White House: No Inflation Threat, Yet

This article was first published by TheNewAmerican.com on Wednesday, April 14, 2021:  

To address increasing concerns that the $5 trillion-plus in new money being poured into the economy by the government will raise prices, the White House called together a group of Keynesian [read: interventionist] economists to sort things out. Their conclusion? Nothing to worry about here; move along.

Specifically, they created various models based upon different assumptions in an attempt to discover any “hint” of inflation. “It never appeared,” said the New York Times. Added the establishment mouthpiece:

Keep reading…

Senate Temporarily Blocks Confirmation of Gold Advocate to the Federal Reserve

This article appeared online at TheNewAmerican.com on Wednesday, November 18, 2020: 

When Senate Majority Leader Mitch McConnell realized that he couldn’t get enough votes to break the filibuster of Judy Shelton’s nomination to the Federal Reserve Board on Tuesday, he changed his vote to “no.” That gives him a procedural opportunity to bring her nomination back to the floor once the three Republican senators who were missing (two due to COVID, one due to a family emergency) are back in Washington.

The confirmation hearing will likely continue the week after Thanksgiving, and will also likely result in the confirmation of Shelton to fill a vacancy on the board.

So, why the filibuster?

Keep reading…

Producer and Consumer Prices Jumped in July Much More Than Expected

This article appeared online at TheNewAmerican.com on Wednesday, August 12, 2020: 

Prices for goods and services at both the producer and the consumer levels jumped far above forecasts in July. The CPI jumped 0.6 percent (an annual rate of more than seven percent — double the rate economists had predicted and the biggest monthly jump since 1991), while the PPI clocked in at 0.8 percent (an annual rate of nearly 10 percent).

Are these harbingers of the coming tsunami of price increases based on the huge jump in the money supply reported by the Fed? Or are they just a blip on the screen, as Bloomberg’s Conor Sen suggested?

Sen tried to soothe concerns, writing that

Keep reading…

National Debt Projected to Hit $41 Trillion by 2030

This article appeared online at TheNewAmerican.com on Wednesday, August 12, 2020: 

If the Manhattan Institute is correct, the national debt will reach $41 trillion no later than 2030, less than 10 years from now. Their calculations take into account the budget deficits baked into the numbers before the COVID crisis hit, the stimulus packages initiated since, the impact of an aging demographic on Social Security and Medicare, falling tax revenues due to a smaller economy, and rising interest rates.

Said the institute:

Over the full decade, the coronavirus recession is expected to add nearly $8 trillion to the national debt, pushing the debt held by the public to $41 trillion within a decade, or 128% of the economy….

 

This gives lawmakers six years or less to avert a potential debt crisis in which rising debt and interest costs would overwhelm Washington’s ability to tax and borrow.

Two key questions arise:

Keep reading…

Wholesale Prices Drop in June; Economists Confounded

This article appeared online at TheNewAmerican.com on Friday, July 10, 2020: 

The Bureau of Labor Statistics (BLS) announced on Friday that wholesale prices dropped by 0.2 percent in June. Economists were expecting an increase of 0.4 percent.

Confounding those economists further, wholesale prices have dropped by nearly one full percentage point over the last year. Common sense says that when the supply of money and currency increases, price increases are sure to follow.

And the money supply has certainly been increasing.

Keep reading…

Consumer Spending Rebounds a Record Eight Percent in May

This article appeared online at TheNewAmerican.com on Friday, June 26, 2020:

The U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) reported on Friday that consumer spending jumped to a new record in May: 8.1 percent over April, more than double the all-time high ever recorded since the bureau started keeping track of such things in 1959.

Consumers, locked away owing to government mandates in response to the COVID virus, headed for auto showrooms and big box stores to celebrate their new freedom in May.

Keep reading…

Stock Market Rallies Despite Negative News

This article appeared online at TheNewAmerican.com on Thursday, June 4, 2020:

The small-cap Nasdaq 100 Index has rallied more than 43 percent since its low set on March 23. The S&P 500 Index has posted its largest 50-day rally in history. The Dow Jones Industrial Average has gained 7,600 points.

With all that is going on in the country and the world, how is that possible? The national riots, the confrontation with China building over Hong Kong, and the deaths continuing to mount as a result of the coronavirus, would all seem to be negatives on the market, driving investors away.

But, no. Investors aren’t looking out the back window, but instead are looking out the front. And they are increasingly seeing what they want to see and hope to see: a recovery that justifies their decision to invest in companies that appear likely to benefit and profit from it.

The president is perhaps the most well-informed individual on the planet. On May 29 he said, “We’re going to have a great third quarter, a great fourth quarter. I think next year is going to be one of our better years.”

There are trillions of dollars just itching to hear such confidence coming from the president. During the lockdown, consumers hunkered down and hoarded many things — toilet paper, canned goods, cleaning supplies, and cash. The savings rate, which is normally around five percent of personal incomes, soared to 12.7 per cent March and then to 33 percent in April. As a result, economists are expecting a virtual tsunami of consumer spending to occur once the economy is fully open.

And the economy is already opening.

Keep reading…

Consumer, Producer Prices Plunge in April

This article appeared online at TheNewAmerican.com on Thursday, May 14, 2020:  

Wholesale prices dropped by 1.3 percent in April, the sharpest decline since the Labor Department’s Bureau of Labor Statistics has been tracking them dating back to December 2009. This followed a decline of 0.2 percent in March.

The report followed the Labor Department’s announcement on Tuesday that consumer prices dropped by the most since the Great Recession of 2007-2009.

The decline is blamed largely on the collapse in gasoline prices, which have dropped by nearly 60 percent over the last two months. Food prices also declined during the month, along with declines in prices of apparel and airline tickets.

But is that the real reason? It’s easy to be lulled into thinking that the shutdown of the economy is the primary cause: People aren’t driving or flying or eating out. Therefore demand is down, which is followed by declining prices.

Simple. Easy. And wrong.

Keep reading…

Consumer Prices in March Fall by the Most in Five Years

This article appeared online at TheNewAmerican.com on Good Friday, April 10, 2020:

The summary of how consumer prices behaved in March, released on Friday by the Bureau of Labor Statistics, noted that its index registered “the largest monthly drop since January, 2015.” The 0.4 percent drop in March is equivalent to a five-percent decrease in prices at the consumer level for a year.

Its Consumer Price Index (CPI) was pushed down mostly by the price of gasoline, which fell by 10 percent in March. This reflected the virtual collapse in crude oil prices, which dropped more than 30 percent last month.

Apparel prices also were down, along with new car prices, reflecting an absence of buyers in retail outlets and showrooms, thanks to the coronavirus shutdown.

When pressed on the matter, Federal Reserve Chairman Jerome Powell (head of the machinery that is responsible for increasing the money supply) said

Keep reading…

Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2021 Bob Adelmann