Read What I See

 

     Retirees and the elderly need to be aware as the Social Security deception is beginning to unravel.  Decades of an uneducated public has allowed this situation to become a reality.  Trust of the people in the system has permitted politicians to deceitfully offer our citizens something that they well knew they could at one point not be able to deliver.  They were always hoping that they would not have to deal with it and treated it as if it was someone else’s problem.  Politicians have known of the problems with Social Security for decades but have brushed it off as something that wasn’t imminent.  They chose to treat it as if there was always time to solve this problem in the future.  Unfortunately, it has not worked out that way and the time to face this problem is very, very near.

Follow up:

     Our nation and the world are at the verge of and economic disaster and one of the casualties will be our Social Security system.  For decades, we have heard of actions needed to repair the system but little has been done about it.  It is hard to tell what exactly will become of it as our economy keeps on taking a turn for the worse.  The current unemployment is draining the system of revenues and everything indicates that this situation will aggravate even further.  The trillions in unfunded obligations requires that those who are presently employed pay for those who are receiving the benefits.  One would think that after paying into the program for decades there would be this vault in the Treasury holding the trillions that have been paid into it.  Unfortunately, for those who are receiving the benefits and for those who are nearing, such vault does not exist.  All that the Treasury has to account for is trillions in IOUs to those who have paid for decades.  The generation receiving payment today is not using their money for their contributions were used to pay for the generation before them.  Those who are presently receiving Social Security payment are being funded by those who are paying now.  So what would happen if tomorrow they would stop paying?  Simply there would be no money to pay the current generation of recipients.

     You may choose not to believe so but we are in the early stages of a total economic collapse and also of a tax revolt by the people.  With the shrinking of their assets, unemployment and personal defaults, they are left without the means of providing for themselves and their families and they will refuse to be overburden with more taxes.  Sense current payments for Social Security are made by the two generations coming behind them a revolt and refusal to pay on their part would leave no money for future payments.

     Below there is a paragraph of an article published by the CATO Institute on August 14^th 1995.  You can read the entire article by visiting this link.

     “Contrary to popular belief, no American has any vested rights to Social Security benefits.  Social Security essentially represents an intergenerational "social contract," whereby the next generation implicitly promises to pay for the retirement of the previous generation.  Unlike participants in funded private pension plans, system participants have no property right to their benefits.  System payouts, as well as eligibility requirements, are entirely in the hands of the Congress elected by the next generation, which may choose to change the rules to meet current economic necessity as it sees fit.  In Fleming v. Nestor (1960), the U.S. Supreme Court settled the matter of Social Security property rights, ruling that workers do not have any accrued property rights associated with the system, and they have no legal claim to either their accrued contributions or their anticipated benefits.”

     Our government although out of funds to finance its spending and with the inability to secure more credit is reluctant to restructure the system as business commonly do when revenues are down and cannot longer meet expenses.  At one point, they will have no choice but admit that they are bankrupt and default on the debt, and then they will be forced to make the necessary changes.  There will be massive cuts in government jobs.  We are now seeing California issue IOU’s to the private sector.  It won’t be long before they stop offering their services for free to a State that is bankrupt.  The unemployment will drastically rise and the next wave of unemployment will come from government itself.  What is happening in California will be the national trend, they just happen to be the first one.  How long will it be before Social Security recipients begin to get paid with IOUs from that vault filled with IOUs?

     We can only guess what Congress will do about Social Security by the time our economy finally bottoms out and begins a true and real recovery.  Since Social Security is not guaranteed and can be change by Congress they can abolish it or modify it as they see it fit at the time of the much needed restructure.  It is very possible that Social Security may be abolished and turned into some form of Welfare for those who are really in need and it will be tuff luck for the rest that paid into it for their entire life and have other means.  If it comes to this, we the people need to take away the politicians pensions including that of previous presidents.  Those who are responsible for the demise of Social Security should suffer the same fate.

     It is sad to see that our country has been mismanaged in such a way for so long.  Many new things will happen and many changes will come about in the near future. This outlook on the future of Social Security may be near to becoming a tragic reality.

Borne during a depression, died during a Depression. (1935 - 2010)