Social Security Inflation Lag Calendar – Partial Indexing

By Daniel Amerman – Re-Blogged From http://www.Silver-Phoenix500.com

There is a lot of advice out there about Social Security – most of which is based on Social Security being fully inflation indexed.

However, as we will establish in this first in a series of analyses, Social Security is only partially inflation indexed. As a matter of design it does not fully keep up with inflation.

Sound like an obscure difference?

“Partial inflation indexing” is little understood by the general public, but it could transform your standard of living – along with the quality of life of millions of others – in the years and decades to come. Indeed, partial inflation indexing can mean effectively having only 11 months of benefit purchasing power- or even 8 months –  to cover 12 months of expenses each year.

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Three Myths About Fixing Social Security

By Brenton Smith – Re-Blogged From Newsmax

Social Security is the largest, and arguably most important, program in the federal government. It is a life-line for millions. For the rest of us the program is a set of never-ending, polarizing arguments.

The contentiousness is caused in large part by the number and conflicting nature of the urban legends surrounding the system. Everyone has a fact that is someone else’s myth.

These convictions about the program shape who voters elect, and seriously limit what candidates are willing to say to the electorate. These beliefs have so penetrated the public conscience that actual policy makers are left herding unicorns.

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Higher Interest Rates May Force Higher Inflation Rates

By Daniel Amerman – Re-Blogged From http://www.Gold-Eagle.com

1) Financial analysis of the three way relationship between interest rates, inflation and the U.S. national debt.

2) Higher interest rates causing higher interest payments on the $20 trillion national debt would ordinarily cause soaring deficits over time.

3) Detailed analysis of the “loophole”, which is that if inflation even moderately increases – then interest rates can rise without exploding the real debt.

4) This simultaneous increase in interest rates and inflation would have a major impact on all markets, as well as long term retirement planning.

5) The logical response to rising interest rates may be to sharpen one’s focus on how to better deal with higher rates of inflation over the long term.

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Economy Contracting But Expect Higher Stock Prices

By Chris Vermeulen – Re-Blogged From http://www.Gold-Eagle.com

The United States is the world’s largest and most diversified economy! It is currently suffering through a protracted period of slow growth which has held down job creation and labor market participation.  The Pew Research Center reported, in late 2015, that a mere 19% of Americans trust the government either always or most of the time.

The FED must print more money in order to keep the party going forward.

The bottom line is that this current bull market has been driven mostly by corporations which are buying back their shares, over the years. Individual investors have increasingly been moving out of equity mutual funds and into equity ETF’s.

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$1 Billion in Social Security Benefits Paid to Individuals Without a SSN

Re-Blogged From Minuteman News

How does this kind of thing happen?   The Feds are so hit or miss when it comes to identification/proof requirements.   You can’t buy a pack of Sudafed now without showing a driver’s license.   And, heaven forbid you try to buy a gun (a guaranteed second amendment right) without handing over your right arm.   But, you want to collect money from the government – no proof of SSN needed.

$1 BILLION in tax dollars because these jokers can’t or won’t do their jobs.

The Washington Free Beacon reports – The Social Security Administration paid $1 billion in benefits to individuals who did not have a Social Security Number (SSN), according to a new audit.

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Phasing Out Social Security

cropped-bob-shapiro.jpg   By Bob Shapiro

Social Security is in trouble. Money going out should exceed money coming in within three years. Of course, the current income on the Treasuries in the Trust Fund are counted as real, even though those Treasuries are little more than IOUs from Uncle Sam’s left pocket into his right pocket. In real world terms, the Trust Fund already is in Deficit.

Even with the rosy Treasury assumption, the Trust Fund balance should be zeroed out within 15-20 years, depending on whose projections you use.

Image result for Social Security Deficit

Economics Professor Laurence Kotlikoff of Boston University calculates that the actuarial deficit is around $100 Trillion, so anyone who says that we can tinker here and adjust there to save Social Security is just not living in the real world.

Social Security is dying. Social Security will end. The only question is whether it ends in a collapse – causing tens of millions of retirees to become destitute overnight – or whether Social Security is phased out, allowing current retires to get all they expect.

I suggest a phase out – a very long phase out.

  1. Today, end filing for early retirement for Social Security benefits. Seniors who already are receiving early benefits may continue, but no further applications will be accepted or processed. Transfer all non-retirement portions into one of the Welfare programs.
  2. For all Americans currently over 60 years of age, they may file and receive full Social Security benefits when they reach the current full retirement age.
  3. For all Americans currently under 60 years old, their full retirement age will be raised by one month for every two months until they reach 60. For example, a 50 year old has 120 months before he reaches 60, so his retirement age will be 60 months later than the current full retirement age.

    Image result for roth ira

  4. Americans under 60 may choose to opt out of Social Security. By opting out, they forfeit any accrued Social Security benefits. They will be allowed to deposit their FICA deduction tax free into a Roth IRA – that’s double Tax Free. The employer match, and self-employment tax, will continue to go into the Social Security Trust Fund. (This will cause large deficits near term but large surpluses down the road.)
  5. At some point, every American will be off Social Security, either by dying or by opting out. Any money remaining in the Trust Fund will go into the General Revenue Fund.
  6. Employer match after that point either:
    1. May be ended
    2. May go into the General Fund
    3. May by added to the employee’s Roth IRA

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This phase out easily could take 60 years to complete. It will not be painless as the younger an American is, the less he will receive in benefits. But, it will put the burden where it can be handled most easily – with younger workers who have more time to plan. And, it sets up a system which still requires putting money aside for retirement, but that money is owned and controlled by each individual American worker.

It should be noted that Medicare is under the same pressures, also with a calculated actuarial deficit around $100 Trillion. A similar phase out for Medicare also makes sense.

 

The Preservation of Perks, Privileges, and Power: The PPPP

By Gary Christenson – Re-Blogged From Deviant Investor

The picture is clear: The Powers-That-Be in Wall Street and Washington, the “Deep State,” military contractors, Big Pharma, Big Ag, The Federal Reserve, Mainstream Media, the DNC and RNC and others want to maintain the transfer game…because the following will continue:

  1. The transfer of wealth to the political and financial elite
  2. Payoffs to the President, Congress, and lobbyists
  3. Military adventures – very costly adventures – must be maintained to feed the massive military-industrial-security complex
  4. Ever increasing debt
  5. Power and influence over institutions and other countries

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