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The Fed Is Systematically Destroying Social Security And The Retirement Plans Of Millions
Submitted by ilene on 09/24/2012
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 fun 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, so it cannot just be thrown into the stock market. 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. ~ Ilene
The Federal Reserve Is Systematically Destroying Social Security And The Retirement Plans Of Millions Of Americans
Courtesy of Michael Snyder of Economic Collapse
Last week the mainstream media hailed QE3 as the “quick fix” that the U.S. economy desperately needs, but the truth is that the policies that the Federal Reserve is pursuing are going to be absolutely devastating for our senior citizens. By keeping interest rates at exceptionally low levels, the Federal Reserve is absolutely crushing savers and is systematically destroying Social Security.
Meanwhile, the inflation that QE3 will cause is going to be absolutely crippling for the millions upon millions of retired Americans that are on a fixed income. Sadly, most elderly Americans have no idea what the Federal Reserve is doing to their financial futures. Most Americans that are approaching retirement age have not adequately saved for retirement, and the Social Security system that they are depending on is going to completely and totally collapse in the coming years.
Right now, approximately 56 million Americans are collecting Social Security benefits. By 2035, that number is projected to grow to a whopping 91 million. By law, the Social Security trust fund must be invested in U.S. government securities. But thanks to the low interest rate policies of the Federal Reserve, the average interest rate on those securities just keeps dropping and dropping.
The trustees of the Social Security system had projected that the Social Security trust fund would be completely gone by 2033, but because of the Fed policy of keeping interest rates exceptionally low for the foreseeable future it is now being projected by some analysts that Social Security will be bankrupt by 2023. Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years. Yes, you read that correctly. The collapse of Social Security is inevitable, and the foolish policies of the Federal Reserve are going to make that collapse happen much more rapidly.
The only way that the Social Security system is going to be able to stay solvent is for the Social Security trust fund to earn a healthy level of interest.
By law, all money deposited in the Social Security trust fund must be invested in U.S. government securities. The following is from the official website of the Social Security Administration….
you are sadly misinformed, there is no social security! the only guarantee is that those who possess a social security number and are employed or have a taxable income are obligated to continue payments TO the government!
Social Security benefits are not guaranteed.
They are not guaranteed legally because workers have no contractual or property rights to any benefits whatsoever. In two landmark cases, Flemming v. Nestor and Helvering v. Davis, the U.S. Supreme Court ruled that Social Security taxes are not contributions or savings, but simply taxes, and that Social Security benefits are simply a government spending program, no different than, say, farm price supports. Congress and the president may change, reduce, or even eliminate benefits at any time.
Now stop propagating the false notion that social security is a benefit or in any way guaranteed.
I would go on about the trust fund but if you extrapolate the aforementioned information you can deduce that there is in fact NO TRUST FUND!!