Thursday, February 18, 2010

Dead broke

According to economist Gary North, 2010 is the year that Social Security (SS) becomes insolvent. The budgeting scam whereby excess SS tax revenues have been siphoned off to fund the perpetual budget deficit is over. The growing depression has reduced SS tax revenue below the amount required to pay Grandma and Grandpa their monthly checks, so the missing billions must be acquired from the general fund. Nowadays the government borrows 40 cents for every dollar it spends from the general fund; this means that Social Security is now living on borrowed money and will do so indefinitely into the future. The amount of money the government must borrow to keep the system from failing will keep growing without limit as millions of Baby Boomers reach 65 with each passing year. Chinese and Japanese chumps are now funding American retirements. Lucky them. How long can we soak these chumps for loot? Not long if the recent Chinese divestiture of $45 billion in US Treasury debt is any indication. More divestitures seem certain as the federal government floods the world with trillions of freshly printed dollars that keep losing what little value they started with. The budget deficit/public debt mess is beyond repair, and the Ponzi scheme called Social Security is rushing to its inexorable climax: total bankruptcy. What are we going to do?

Well, first, listen to the following talk by Gary North about your future prospects both as a worker and a retiree. Then start preparing yourself for a really bleak future because we’re in this mess for the rest of our lives.

Retirement Armageddon

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