The Federal Reserve Is Destroying Social Security

[FaninAma]

http://www.infowars.com/the-federal-reserve-is-systematically-destroying-social-security-and-the-retirement-plans-of-millions-of-americans/

Not to mention what it is doing to seniors whose savings are in fixed income instruments and can't play the casino markets.

[badger]

What collapsed Social Security is people getting more money out than they ever paid in. Now the senior boomers are retiring and us young Millennials will never have a hope to be able to support the SS system. We have high unemployment numbers, we started employment later than most other generations (due to older people staying employed longer and a crappy economy mostly), and there aren't nearly enough of us, regardless.

The retiring generation had it pretty good pretty much their entire lives. It had to end somewhere, sadly.

[FaninAma]

The natural demographic shortfalls are only being hastened by the artificially low Treaury Bond interest rates. By law the Social Security Trust Fund can only invest in government bonds. If, as I suspect, the Federal Reserve keeps interest rates low past 2015 the Trust Fund will probably run out of money by 2020 to 2025.

[pphilfran]

They can only invest in Special Issue bonds that cannot be sold on the open market..then we spend the money as if it were general revenue funds....we then print bonds and then pay ourselves the interest rates...at a low interest rate the growth slows and it runs out sooner...at high interest rates we have to pay ourselves more so it cost us a ton of more money in interest but it last longer...we are damned if we do and damned if we don't...

[KantoSooner]

The only long term solution is the Singapore pension system: You pay around 11% into a lock box, your employer puts a matching 11% in. You get payout starting at 65. Meantime, you can take money out to invest in a primary residence, for personal or children's education or for stipulated major med not covered by national health (such as plastic surgery). You can invest in a list of approved companies and bonds or leave it at money market rates. You can walk into any government services kiosk on the street, type in your ID and pin no. and get up to the minute how much you have in your account.
No dicking around with 'unfunded pensions' or 'pay as you go' BS. Change jobs? New employer simply starts paying in where old employer left off.

Problems? Well, leftists get their tits in a wringer because a guy making $100K a year gets a much larger retirement than a guy making $20K a year. Solution? Life is tough, try hard to get a better job.
Another one: how do we get the US over to such a system? We will have to pay double, in effect for a generation or so. Sucks, but the whole thing is going bancrupt anyway, so we might as well make progress toward something worthwhile.

[Curly Bill]

The only long term solution is the Singapore pension system: You pay around 11% into a lock box, your employer puts a matching 11% in. You get payout starting at 65. Meantime, you can take money out to invest in a primary residence, for personal or children's education or for stipulated major med not covered by national health (such as plastic surgery). You can invest in a list of approved companies and bonds or leave it at money market rates. You can walk into any government services kiosk on the street, type in your ID and pin no. and get up to the minute how much you have in your account.
No dicking around with 'unfunded pensions' or 'pay as you go' BS. Change jobs? New employer simply starts paying in where old employer left off.

Problems? Well, leftists get their tits in a wringer because a guy making $100K a year gets a much larger retirement than a guy making $20K a year. Solution? Life is tough, try hard to get a better job.
Another one: how do we get the US over to such a system? We will have to pay double, in effect for a generation or so. Sucks, but the whole thing is going bancrupt anyway, so we might as well make progress toward something worthwhile.

You mean reward people for working hard, for doing well? Surely you jest?!

[pphilfran]

The only long term solution is the Singapore pension system: You pay around 11% into a lock box, your employer puts a matching 11% in. You get payout starting at 65. Meantime, you can take money out to invest in a primary residence, for personal or children's education or for stipulated major med not covered by national health (such as plastic surgery). You can invest in a list of approved companies and bonds or leave it at money market rates. You can walk into any government services kiosk on the street, type in your ID and pin no. and get up to the minute how much you have in your account.
No dicking around with 'unfunded pensions' or 'pay as you go' BS. Change jobs? New employer simply starts paying in where old employer left off.

Problems? Well, leftists get their tits in a wringer because a guy making $100K a year gets a much larger retirement than a guy making $20K a year. Solution? Life is tough, try hard to get a better job.
Another one: how do we get the US over to such a system? We will have to pay double, in effect for a generation or so. Sucks, but the whole thing is going bancrupt anyway, so we might as well make progress toward something worthwhile.

I could go for something similar...as you say, the transition would be difficult...

[jkjsooner]

The thing that really ticks me off is that most politicians (Republican or Democrat) don't want to make changes for those who are 15 or so years away from retirement.

The baby boomers are going to protect themselves and nobody will stand up to them. Meanwhile, we can't fix the problem by only impacting those 50 and under. There are many facets of the problem but the demographic issue is a big one and protecting the entire baby boomer generation isn't going to solve the problem.

Everyone needs to man up and pay their share. We need to pay more money into the system, accept lower payouts, and increase the age of retirement.

[badger]

The baby boomers are going to protect themselves and nobody will stand up to them.

A lot of baby boomers are in office - why would they go against themselves? The real change will happen when the next generation takes over... and the system will be out of money by then anyways.

Social Security didn't exist way back when and it's about to be gone. The U.S. was around before social security and it'll be around after. We'll find a solution, either through compromise or by force.

[pphilfran]

The thing that really ticks me off is that most politicians (Republican or Democrat) don't want to make changes for those who are 15 or so years away from retirement.

The baby boomers are going to protect themselves and nobody will stand up to them. Meanwhile, we can't fix the problem by only impacting those 50 and under. There are many facets of the problem but the demographic issue is a big one and protecting the entire baby boomer generation isn't going to solve the problem.

Everyone needs to man up and pay their share. We need to pay more money into the system, accept lower payouts, and increase the age of retirement.

SS is a piece of cake to resolve...slowly raise the age limit by a couple of years and raise the limit to 140 or 150k....fixed

[KantoSooner]

Look, I've lived in mid-tier third world countries, and you know what? Life there is not so bad. Not a lot of styling going on and the flat screens are smaller and there's only one to a house, etc, etc, etc.
But, we've got to face facts that we're out of cash. I'm fifty; it's going to hit me right on the nose; but then I've spent most of my life being about 15 minutes late for the Baby Boomers' 'Party Party Weekend!'. So, what the hell, I'll be old and poor. I'll live in a van down by the river and cook over an open fire before snuggling into my blankets with my trusty bird dog companion to nurse a little glass of whisky as I listen to the coyotes and drift of to sleep.

**** fahr! This is sounding better by the minute! Roll on geriatric poverty!

[badger]

Look, I've lived in mid-tier third world countries, and you know what? Life there is not so bad. Not a lot of styling going on and the flat screens are smaller and there's only one to a house, etc, etc, etc.
But, we've got to face facts that we're out of cash. I'm fifty; it's going to hit me right on the nose; but then I've spent most of my life being about 15 minutes late for the Baby Boomers' 'Party Party Weekend!'. So, what the hell, I'll be old and poor. I'll live in a van down by the river and cook over an open fire before snuggling into my blankets with my trusty bird dog companion to nurse a little glass of whisky as I listen to the coyotes and drift of to sleep.

**** fahr! This is sounding better by the minute! Roll on geriatric poverty!

Lol... I was thinking more along the lines of we'll move back in the direction we used to be at, where older generations relied on the younger members of their family and everyone lived together till death-ish (or they got sick of them and shipped them off to a nursing home where they "never" visit).

Alas, there has never been a larger disconnect between generations than there is now, so you old farts heed this warning: You're gonna be relying on us, not the government, so be nice (or vote for a different government).

[jkjsooner]

A lot of baby boomers are in office - why would they go against themselves? The real change will happen when the next generation takes over... and the system will be out of money by then anyways.

Exactly. It will be too late.


Social Security didn't exist way back when and it's about to be gone. The U.S. was around before social security and it'll be around after. We'll find a solution, either through compromise or by force.

I think we'll have riots if they simply get rid of it. Those who have paid in for 30+ years (given not the rioting demographic) are going to want at least some of that money returned.

[badger]

I think we'll have riots if they simply get rid of it. Those who have paid in for 30+ years (given not the rioting demographic) are going to want at least some of that money returned.
Hehe... I am picturing Social Security riots as...
http://zapatopi.net/blog/walking-stick_defence_barton-wright_1.gif
http://sandiegofun.files.wordpress.com/2009/10/old-man-with-cane.jpg
http://defendyourself101.ca/files/images/me_cane.jpg
It'll be like a Tea Party rally... except with even less impact and more TV cameras :D

[cleller]

Singapore again showing the rest of the world the if you force your citizens to accept responsibility, everyone will be better off.

[StoopTroup]

It will be much worse than that.

We have heard these ravings since before Reagan.


The truth is that our system is almost certainly going to totally collapse long before then.

Every time there has been a way to bail it out. If SS fails....we will have more than just one problem. As the article Fan pointed out says....the price of things will go up and the amount of SS people have will go down. However....Unemployment, Detroit, Wall Street were all doomed back in 2009 and everything that this administration proposed as a fix was supposed to be a colossal failure yet that hasn't happened. Many things have gotten better. Proof that the only thing you need to fear is the fear mongers themselves.

[FaninAma]

Food staple prices have quadrupled sonce 2002. Anybody think that might have an effect on the poor? Oh, but we have been told there is no inflation. My bad.

http://finance.yahoo.com/blogs/daily-ticker/rising-food-prices-why-wall-street-partially-blame-174836463.html

Stoop, you really need to stop buying the propaganda the government puts out and do your own due diligence. And I am not just pointing fingers at the Democrats and progressives. The Republicans are just as bad about twisitng government data to make themselves look better.

[diverdog]

Look, I've lived in mid-tier third world countries, and you know what? Life there is not so bad. Not a lot of styling going on and the flat screens are smaller and there's only one to a house, etc, etc, etc.
But, we've got to face facts that we're out of cash. I'm fifty; it's going to hit me right on the nose; but then I've spent most of my life being about 15 minutes late for the Baby Boomers' 'Party Party Weekend!'. So, what the hell, I'll be old and poor. I'll live in a van down by the river and cook over an open fire before snuggling into my blankets with my trusty bird dog companion to nurse a little glass of whisky as I listen to the coyotes and drift of to sleep.

**** fahr! This is sounding better by the minute! Roll on geriatric poverty!

This sounds like something I would post. Lol

[diverdog]

Food staple prices have quadrupled sonce 2002. Anybody think that might have an effect on the poor? Oh, but we have been told there is no inflation. My bad.

http://finance.yahoo.com/blogs/daily-ticker/rising-food-prices-why-wall-street-partially-blame-174836463.html

Stoop, you really need to stop buying the propaganda the government puts out and do your own due diligence. And I am not just pointing fingers at the Democrats and progressives. The Republicans are just as bad about twisitng government data to make themselves look better.

Did you read the article? It places the blame on Wall Street.

[olevetonahill]

The Young have ALL the answers .
The Prob with SS is the Gov, started spending it instead of holding it in trust and letting it earn

[FaninAma]

Did you read the article? It places the blame on Wall Street.

I know and I agree. The Federal Reserve is their facilitator by massively churning out liquidity that those in upper echelon in our economy's food chain, once their cash reserves are topped off, are using to buy hard assets......equities, commodities......or simply speculating in the futures of hard assets which is even worse.

[cleller]

With regard to the original article this is what really jumps out at me:

"Back in August 1967, there were approximately 65 workers for each American that was collecting Social Security disability payments.
Today, there are only 16.2 workers for each American that is collecting Social Security disability payments."

also this:

"Of course most Americans have not saved up much money for retirement anyway. According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement."

This highlights the shift from Americans being a people that provided for themselves into a country of people relying on the government. Those two figures should show you we're a screwed bunch these days. What kind of spineless idiots could allow SSDI to get so ruined?

[badger]

I wonder if people who aren't retired realize how little SS provides for their retirement, as well as end-of-life expenses (it's like $255 or so, right?).

Of course, there are others who read the hyped up news about 10 years ago that Baby Boomers were set to receive the largest inheritances ever as the Greatest Generation died, so they didn't bother saving, because the wealth was about to come their way via estates... and then the Greatest Generation continued living and the inheritances were gobbled up with medical and living expenses.

Sounds kind of like OSU's Gift of a Lifetime failure, eh?