Confirmation: Social Security is insolvent

If you viewed the post with Gary North explaining why Social Security is now officially insolvent, then the news account below is no surprise. If you haven't, then "SURPRISE! Social Security is insolvent."

This so-called "pay as you go" Ponzi scheme is now entering the going broke stage. There is not enough money coming in to pay out, so the government must borrow money--billions and billions--from anybody it can swindle to keep the checks a-comin'. Does this remind you of Bernie Madoff? It should because Bernie's empire was a "pay as you go" rip-off that worked exactly the way Social Security works. Bernie's in prison now; his investors-cum-victims are impoverished. When will the Social Security Administration be arrested?

Soon Grandma's and Grandpa's Social Security checks won't buy a MacDonald's cheeseburger because the Chinese and Japanese chumps who have been funding American government debt up to now have had enough. Recent sales of Treasury debt have been funded largely by the Federal Reserve, which simply prints a fresh batch of dollars to buy the freshly printed Treasury debt certificates. This monetary inflation will gut what little is left of the dollar's value. Get ready for Weimar Republic-style hyperinflation in which you toss out your wallets and replace them with wheelbarrows to carry around the bales of worthless dollars you'll need to buy a taco for lunch.

Read it here

Extra: Below is an article explaining why Social Security is doomed: the Chinese are finally beginning to divest themselves of American government debt. Little by little, the Chinese are dumping current debt and not buying new debt. They're proceeding slowly so as not to start a run on the dollar. They want to get as much value as they can before the market for dollars begins a free fall. Of course, everybody who knows the currency markets knows what's going on. Only the American government thinks that it can rack up colossal debts and debase its currency with impunity. How long before this trickle becomes a torrent? Who knows, but the people of world are clearly not going to finance Mr. Obama's $1.56 trillion deficit with their hard-earned savings anymore than they financed last year's $1.3 trillion deficit. The Fed did that by printing up gobs of play money pretending to be sound dollars. The Chinese know the jig is up. Why doesn't Mr. Obama?

Read it here