I can remember back around 2002 telling people that Social Security was starting to run out of money. Some people looked at me like I had three heads. They would say things like, “Well I’m getting my social security check regularly” or, “I ‘m paying in so they had better have the money to pay me when I retire.” I just kept on sounding the alarm, letting people know “it’s going to happen.”
Well… the chickens are coming home to roost. Simon Black, The Sovereign Man and others are reporting that one of the two social security trust funds, the one labeled The Disability Insurance or (DI), will be flat broke by the end of 2016! That’s next year folks. The other trust fund, called the Old Age Survivor’s Insurance fund or OASI, will be bankrupt in 2034!”
By the way, the Old-Age Survivors Insurance Trust Fund began in 1937; the Disability Insurance Trust Fund in 1957. These trust funds are managed by none other than the infamous Department of the Treasury.
This revelation of insolvency means people that are currently receiving social security will lose around 20% of their benefits starting next year, and if you’re 47 years old or younger, you will NOT be receiving social security at all – even though you’ve been forced to “contribute” thousands of dollars to this Ponzi scheme!! This is the government’s own data, not mine or anyone else’s calculations.
As a matter of fact, they’ve been telling you about the ensuing bankruptcy of social security for a long time now. When I looked at an old social security statement of mine from 2004 there is an asterisk with the following message:
“The law governing benefit amounts may change because, by 2042, the payroll taxes collected will be enough to pay only about 73 percent of scheduled benefits.”
A few days ago The National Review published an article entitled, “Did You Ever Notice the Asterisk on Your Social Security Statement?” This article states that the 2015 sentence related to the asterisk says:
“The law governing benefit amounts may change because, by 2033, the payroll taxes collected will be enough to pay only about 77 percent of scheduled benefits.”
There are eleven years between these two statements, but the amounts to be paid out is still less than 100 percent and the number of years till the fallout is now nine years earlier than before.
But wait – Congress has come to the rescue. They’ve developed a House Resolution called, the “One Social Security Act”, or HR 3150. This House Resolution fixes the problem of a depleted social security DI trust fund by eliminating the fund altogether!
Yes, you heard me right – instead of keeping the two separate funds that, by the way, have two different purposes, this resolution’s purpose is to combine the two into one fund. In performing this magic trick there will no longer be a requirement to separately report the DI funds insolvency!! These crooks are trying to make the problem vanish by eliminating the requirement to report it.
Social Security is already the largest Ponzi scheme to ever exist. It takes money from the last people to contribute in order to pay the people that contributed years ago, because the money that the first people contributed was spent on government waste. Now thousands of people are retiring daily – too many for the current work force to support with their contributions. The current work force is paying in for people other than themselves. This is fraud on so many different levels!
I’m not really surprised though, because congress has a history of solving problems by acting like they don’t exist and obliterating any semblance of transparency and accountability. They have become more brazen in their fraudulent actions each year, as we sit by and let them destroy our finances! You and I would be placed in the slammer if we attempted such a foolish stunt. But the congress critters have deemed this hoax a legitimate solution!
This is who they are – this is what they do best. If the American people wake up and grasp what’s really happening with that large chunk of money that comes out of their paychecks there will be blowback!
For years I’ve been telling people to stop thinking that social security will be there for them and start preparing their finances before it goes broke. Here are some things you can do to prepare:
- Get out of debt – pay yourself first by having plenty of savings. Pay your bills on time to eliminate all of the extra late fees and interest. Stop shopping at malls and on line, buying things you don’t need.
- Start a business – I have a consulting business where I conduct financial seminars, I have a new book called Basic Financial Survival and I have several people that have headed the advice in the book, ultimately decreasing their expenses and increasing their income.
- Invest in real assets – Since my finances are just beginning to improve I can’t afford real estate or oil and gas interests, but I have a gold savings account.
Karatbars International is my home-based business – where I get to invest in gold as a hedge against inflation and financial turmoil, and at the same time make money helping other people do the same.
The only way to avoid going broke along with social security system is to invest in yourself, particularly in a home-based business and in your financial education. Make all of your plans and decisions based on the assumption that Social Security is non-existent. Get out of debt, Start at least one home-based business and acquire gold and other real assets.
I’m not yet financially free but you best bet I am heading away from the Ponzi scheme called social security and towards having real financial freedom – being able to thrive and not just survive day to day! Thanks for listening. If you like what you heard share it with others.