"Social security is a ponzi scheme" - Rick Perry

Our quality of life is on decline. An entire nation cannot borrow for decades and then hope that all will be fine when the pay back time arrives. Inflation or deflation, the outcome is going to be the deduction of the real value of debt from the money supply. What was borrowed will be paid back one way or another. If Bernanke prints too much, savers will pay alot. If Bernanke prints too little, borrowers will pay alot. But at the end, when the dust settles, it does not matter who pays in a global economy. Deflation is more likely than inflation in the near term. This is because if Bernanke does not print, then it is outright deflation as debt deflates. If Bernanke prints too much, then creditors will not lend at low rates, thus reduction in credit supply will be deflationary for credit dependent markets such as housing. In any case, deflation means pool is shrinking. Here is how the monetary system is prone to inflation and deflation:

www.kondratieffwavecycle.com/credit-inflation/

Our real problem is not unemployment, or housing, or productive capacity. Our real problem is man made. Self induced. We have borrowed from the banks for many decades. Banks use fractional reserve banking and they legally counterfeit money. This new money inflates the prices and salaries. Now our entire money supply is created by the banks like this and it is N. But we promised to pay back N+I, I is the interest.

I hope it is obvious to you that entire population cannot possibly be employed with salaries that makes it possible to earn N+I. Thus, bankruptcies, foreclosures are a guaranteed part of this debt based monetary system. But then the question is: If borrowers are guaranteed to fail, why does the bank get to keep the house?

When the economy is strained by excessive debt burden like this, do not hope to find employers who can hire people. They are in trouble too. Their customers are in trouble too. Everybody is in debt and nobody wants to spend. It is a deflationary crash.

Our problem is unemployment , someboy, just ask anyone out of work. The main problem is that our economy and capital went to China, our borders are open to lower wages, our visa programs lower wages as well, we are bankrupt from bailout of banks and endless wars-that is pretty much the story. All this is due to corrupt politicians and globalist agenda.

Social Security Raise Needed in Tough Economy

Really???? You don't say.

NO ONE in MY company has received a raise in THREE FREAKING YEARS. And WE'RE making do with what we have.

Gee, I, certainly along with MILLIONS of other WORKING Americans, sure could "live a little better" with an extra 3.6% in MY pocket too. Ever think of that? Probably not if you're part of the entitlement crowd.

Why is it so hard for people to understand Cost of Living Adjustmenst (COLA)? The flat fact is that because of inflation, it takes an adjustment equal to the rate of inflation just to stay even. This 3.6% increase does not even come close to that standard.

The rates of inflation involved are: 2008 - 3.85%, 2009 - -0.34% (deflation), 2010 - 1.64%. So far this year it is approximately 2.7%. So if you add up the inflation rates since the last Social Security increase, you get 7.85% (2008 thru the end of Sept 20-11.) That means that people on Social Security lost over twice what the 3.6% will replace. So, you should be thinking of it as making permanent a 4.3% PERMANENT cut in Social Security benefits for everyone already retired and those who will retire in the future. The woman in the article would have gotten $20.04 increase against $52.44 lost to inflation.

What is really troubling is the 2011 rate of inflation: Jan - 1.63%, Feb - 2.11%, Mar - 2.68%, Apr - 3.16%, May 3.57%, Jun - 3.56%, Jul - 3.63%, Aug - 3.77%, Sep - 3.88%. There is a very obvious trend for 2011 that is troubling with the inflation rate projected to top 4% by the end of the year.

Inflation really hits those on fixed incomes the hardest. This is because next year's payments are based on previous inflation rates, and inflation that does not result in a COLA is dismissed out-of-hand.

And if you haven't had a pay raise at your work in three years, what you have actually had is about a 4% pay cut. You didn't even stay even.

How is all that hope and change working for all you liberals out there?

I'm sorry that you are upset you haven't gotten a raise at your *job* for 3 years. But i guarantee you that you make more at your *job* than I do with my social security check. I am unable to work, unable to even leave my home most days, and I live on a whopping 689 dollars a month. With that, all my bills are paid, and I am able to eat a meager diet, with no amusement other than the internet. When was the last time you went out to dinner? When was the last time you bought yourself a beer, or new socks, a shirt, shoes? I wear clothes that are 10+ years old. I don't have cable TV and haven't for 12 years. I have no cellular phone. I have no car. I live in a 1 room apartment smaller than my childhood bedroom in a neighborhood rife with crime and murder.

So again, so sorry that you didn't get a raise in 3 years, but I guarantee you bring home 3-4 times the amount I get every month. I guarantee you would not be able to survive on what I do and that you would demand more.

In other words, thanks for the whole PENNY that you contribute every month to me, and if I ever saw you on the street, I'd make you eat it. You think I think I'm entitled to this money. I say I am entitled to LIFE. I am a human being, and so is everyone else on social security. People like you would rather see us homeless, starving, and dying. Which one of us is the better person?

those greedy social security people, they worked for 30-45 years, had 6% taken out of their payroll, paid taxes on the 6 %, and they expect the government to give them a income; come on now, congress has much more important things to spend the social security money on, they just bought a 200 million dollar computer system for congress to handle junkets, paid for from social security funds, they just bailed out the banks for 1.5 trillion dollars, paid for by social security funds, their health care benefits, paid for by social security funds; if the people have no bread, let them eat cake !

Don't forget the million$ for Obama's new buses and the cost of the circus he brings along on his road trips for re-election. "CHANGE YOU CAN BELIEVE IN"..... Suckers! LOL!

Came across this on Facebook. It is true, and something for SS opponents to think about, especially the ones who fail to realize they are paying into this every paycheck too.

Remember, not only did you contribute to Social Security but your employer did too. It totaled 15% of your income before taxes. If you averaged only 30K over your 49 year working life, that’s close to $220,500. If you calculate the future value of $4,500 per year (yours & your employer’s contribution) at a simple 5% (less than what the govt. pays on the money that it borrows), after 49 years of working you’d have $892,919.98. If you took out only 3% per year, you would receive $26,787.60 per year and it would last better than 30 years, and that’s with no interest paid on that final amount on deposit! If you bought an annuity and it paid 4% per year, you’d have a lifetime income of $2,976.40 per month. The folks in Washington have pulled off a bigger Ponzi scheme than Bernie Madhoff ever had. Entitlement, my foot, I paid cash for my social security insurance!!!! Just because they borrowed the money, doesn't make my benefits some kind of charity or handout!! Congressional benefits, aka free healthcare, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days, now that's welfare, and they have the nerve to call my retirement entitlements!!!!!! They call Social Security and Medicare an entitlement even though most of us have been paying for it all our working lives and now when it’s time for us to collect, the government is running out of money. Why did the government borrow from it in the first place?

Hotticket has a job and yet feels justified in whining.

Yes, this extra money will serve seniors well! Now they can buy the top-quality canned dog food for their dinners rather than the generic.

Not even.

It's better than nothing.

Will oppose what, Jim? This raise is part of the COLA law that's been around since the mid-1970's. It's about 40 years too late to oppose it, so you'll have to find some other non-issue to attack Cain with.

Spider> Bingo. The liberals will gloss over facts in an attempt to impart some spin but it's the law and regardless of whether Social Security is a Ponzi Scheme or not (and it truly is) it happens to be law as does the COLA kicker.

The real issue here is replacing SS, gradually, that allows citizens freedom of choice and the ability to opt out of any governmentally sponsored "retirment" plan - which, incidentally, was never originally designed to be an individual's sole means of retirement support.

Rick- Most of us never intended for it to be either. My kids had that same attitude until they saw first hand what happened to my retirement savings. Now they are grateful that social security is there and they realize how quick you can go from ok to broke. And the fact is that most of your age children expect your parents to send you to college and pay for it. No one paid for mine. Once we were grown and out of public school we were expected to pay for our own "futher education". And we did so. If our parents had to pay for us, there would be nothing left for them to retire on.

I get a COLA raise of $31. the mobile home park, then raised our lot rent $15. mo. Medicare went up $46. mo. No COLA for the last two years. I am a 99%. Slow starvation. Net loss mo. $30. Thanks you Wall Street.

michelle, what does Wall St have to do with the rent on your trailer lot and Medicare rates?

AG-COLA stands for Cost Of Living Adjustment-What she's saying is that the $31 didn't come close to covering it.

I know she did, but she's blaming Wall St.

(Luv the TARDIS, by the way. Ten Forever!)

HE LEFT US, MUM!

Aww, I wanted to be ginger! I've never BEEN ginger! And YOU, Rose Tyler! Fat lot of good you were! You gave up on me... Ooh, that was rude. Is that the kind of man I am now? Am I rude? Rude and not ginger?

lol!

That does seem to be the common reply. That, along with, "Go back to school!" Which makes sense, right? Blow thousands of dollars learning something "guaranteed" to get you a job in today's market... only to find out that it doesn't!

Jobs? What jobs? And many of the elderly receiving this pittance worked 40 plus years for their benefits.

My grandparents were poor farm folk--moved from northern Michigan down to Detroit in 1941. Both started working, making good money during the war and after. Even though they also raised three kids (Grandma was pregnant four times), within twelve years, they were able to buy a suburban lot and build their own house on it. They lived out their lives decently with the help of Social Security, and got to enjoy their senior years free from economic struggle.

That will never be my fate. I envy them.

Plus many of these seniors have pensions to supplement their SS. Something most of us won't. I'm not saying they had it easy, but I think the cards are definitely stacked against the younger generation.

Robin, The medicare is supposed to go up to about $240 mo. premium by 2014. Next year near $140 if I remember correctly. When it goes up, I'll have a whopping $480 to live on and that will have to pay the co-payments on Dr. Bills and meds that medicare doesn't pay for. Forget the heating cost, the food cost, any insurance on my home, forget glasses or dental care.

It seems alot of these younger ones want us dead..but they too, will have to meet their maker and walk that lonesome valley by themselves. I doubt their children will help them one little bit. Their sons and daughters will be swooped up on the great military machine and hopefully they won't be sent home to them in a box. These wars aren't about terrorism, they're about greed, oil, gold and position. Its called financial terrorism. Who are the terrorists? A vast majority sit in DC and they are constantly thinking up ways to instill fear in the americans. People just don't see thru the eyes of us that know what is really happening. They will starve us older ones out...and control the minds of those behind us. Then they will die too. They just don't have a clue.

I guess you should have thought about that all those years when you didn't put away any of your own money for retirement.

Spider: until you've been through a serious illness and had your savings drained by medical bills... until you've had children... until you've lost life-sustaining jobs (not the piddly little office or McD fast-food jobs that do little more than put temporary cash in your pocket)... shut up. You're ignorant. A lifetime of savings can disappear with a snap of the fingers and no amount of "saving" will "save" you.

Spider, have you checked your own retirement investments lately? Most are rapidly diminishing.

Are you healthy? You never know what the next day will bring.

Are you certain your job will be there next year? So did a lot of folks.

Count your blessings but don't think you are anyone special. Things can change in the blink of an eye.

spider-737231

Takes all kind dont it spider even the ones who think they rich.

Shhhhh...don't wake spidey up from his dream. He won't like reality.

What comes around goes around! You could be the next to be let go from your job or find your savings cut in half or come down with a bankrupting illness, god forbid.

The stock market has tanked what...3 times in the last 12 years. Savings accounts pay about .05%, tell me oh wise spider, just how does one save for retirement?

Oh, come now! You should know better than to ask questions of someone who thinks "all you gotta do is save" is the answer to all things fiscal... because, like, money is, like, forever! Right, dude? "Whoo, look at me, I've got a hundred grand in the bank! I'm set for life!"

(cut to horrific car accident caused by Spider driving drunk... the loss of a spouse, bail and lawyer expenses, the loss of a limb, three months in the hospital, eight months of rehabilitation... and finally homelessness due to being unable to pay medical bills or work any more...)

No matter how much money you THINK you have, it's never enough when tragedy strikes. And nobody is indestructible.

It is everyone's issue, to that I'd agree. But those of us who still have healthy bodies and are young enough can find work ten times easier than a senior with mobility issues.

bluntone -- you try finding a decent job even at the age of 50, let alone 65 or 70. Most likely the people who depend solely on SS had low-paying jobs to begin with, making saving difficult. As a country we should be ashamed at how we treat our seniors. Actually, we should be ashamed for not using our brains and voting in those politicians whose interests are entirely self-serving and who have no compunction about letting this country go to hell in a hand-basket, seniors and all.

Susi-Oh: actually, good luck on finding any decent politicians to vote for. They are few and far between.

Finally, some one who can count three years from 2008 and not just two.

I used to think the problem was that the corporations had captured government, but I realize now it's worse - the corporations and government have the same interests, needs, and desires. What benefits the corporations also benefits the government, and the government (like most people and organizations) tends to act in its own interest.

Exactly what do you think the "government's interest" is?

This is for all the youngins on here. Rather than complaining about us old folks getting government handouts which we earned by the way by paying into their mandated insurance program...............Learn to take your lunch to work, learn to brew your own coffee and put it in a thermos, get out and mow your own lawn, walk your own dog, go on line or to a library and read the repair manuals for everything in your homes, paint your own house, quit going to happy hour for your three dollar beers and your seven dollar cocktails, Don't buy a thirty thousand dollar car on a 30000 dollar salary, don't upgrade your cell phone every time there's a new model, don't buy a 2000 bicycle when a two hundred dollar one will do the same thing, quit buying gadgets that you don't need and maybe you'll have a little bit to save each month, but don't count on a bank paying interest. You are better off putting it in a safe as the bank will probably charge you for the use of your money. Learn to cook at home and save eating out for special occasions such as anniversary and birthday. Quit complaining about life being so unfair. We had to learn to tighten up our belts since the first depression, again in the 50's, 60's, the depression in the 70's, the dot com crashes in the 90's. 2011 is not the first time this has happened. Granted, insurance didn't cost as much as you might be paying. Most of us did without it and hoped for the best. Most of us had to save up for the down payment on our homes. We had to qualify for the mortgage. We bought the houses we could afford and we read the small print on the loans. Most of us had common sense which is a learned trait and becomes a gift if it is used wisely. Please stop hating your elders. Old age comes sooner than you think. And the final advice I will offer is use your head for what God gave it to you for. Think with your brain and stop listening to the crap that is being spewed from the the mouths of Fox news.

Fighting for rights, you were right on.. until your last comment & it was stupid.

Tera, I am yet another one that paid my SS taxes for 40 years. The money I receive from SS is not a benifit, it is my money coming back to me.

Your attitude of "you want" but you "you haven't paid" is the base problem today.

Give Me, Give Me, Give Me without paying is what has put this country in a hole. Quit whinning and pay your fair share and don't complain about those that have.

Fightin for Rights...

Nice blog there...funny how my hubby has worked for the last 37 years of his life but he will never see retirement. How you ask? He is one of the youngins you are stereotyping. He has worked since he was 6 years old. The only man of the house, even at that age, he chopped down trees and then chopped them into log sized chunks to burn to keep heat in the home for his family. He also did roofing, pumping gas, newspaper, etc. He has paid into the SS system since he was legally "of age" to do it. Didn't purchase a home until 3 years ago because a house payment was cheaper than rent. Never owned a new car. The only shoes he has is what his work provides. My only pair of shoes is over 3 years old. We have been to a movie theater one time in the 6 years we have been together. Paycheck to paycheck...the only savings he can acquire on his own dime is the 401K he invests in with a company match. But, that has lost over a 1/3rd of what has been put in-and he is a lucky one. He also has a pre-existing medical condition that has sucked up any money he has earned since he was 19--yet he continued to work despite pain. With it managed now thanks to employer medical insurance he still has some medical costs on the side but nothing as bad.

This youngin worked for over a week with Shingles and NO pain killer. The Shingles covered his right cheek--through his hip and groin, and completely down his leg through his calf. Every time he stood up, it brough him to the floor in tears from the pain. Yet he went to work every damn day. With your old age status--surely you must have a little notion as to what Shingles is and the pain and permanent nerve damage it can cause. Many of his corworkers had never heard of it--so he showed them pictures of his leg. Once he got his biweekly paycheck-we then had money to get him to the doctor to get medical attention and prescriptions for it.

He was raised with the true MAN mentality. And he is a true MAN. He has never hired anyone to do anything for us. He has fixed his own car despite the problems with it. He has done his own construction on homes, cleaned out our sewage line and is making plans to dig up the front yard to replace a main sewage pipe that is busted...because he is a Jack of All Trades.

He can't stand watching news--so he is not a fan of Fox news--he is not into politics so he doesn't put himself in anyone party...he does however support gun rights because he comes from a family of hunters with hunting traditions and inherited guns and memories, is against abortion (a topic we disagree on), and is willing to ask for help when we need it because he puts his family first over personal dignity when it calls for it.

This youngin and many others have stopped listening to the crap being spewed from the mouths of old farts because they come from a mentality of the only generation that knows everything and deserves everything--look around, because it is the generations that come after you that you rely on to wipe your a$$ when you loose your independence. Don't bite the hand that feeds you...just a recommendation.

CrabbyPatty73: Thanks. I hope the best for you.

ww2vet: Thanks for your support. My husband is 100% Combat disabled Vietnam Vet. Thank God the VA is improving. As of yesterday the House still hasn't decided if Vets will get a COLA and we have to wait till they come back from their Vacation to find out. Ain't that nice? These young posters on here DO NOT have a clue. It would be nice if just once in the last 40 years one of them had offered to mow our lawn, but they probably don't know what the DV tag stands for on the back of our 1989 pickup truck. Yep, My husband gave a leg fighting for the rights to be verbally abused still. The more things change the more they stay the same.

I'm a veteran as well (USN, served 2x), and I joined the military so that I could do the jobs that someone else either couldn't do (physically or mentally) or was too weak-willed to do ("Oh, no, I could never be in the military! I can't stand having someone else tell me what to do!"). Any verbal abuse from anyone who hasn't served is just wasted words on their part; they're just flashing their true ignorance.

My thoughts exactly Ted.

If I hadn't saved and invested wisely (sheer luck), I would now be living on the street. SS i nothing but suplemental income. Very few people can live on SS alone.......even if huband and wife both get it.

Right now the minimum taken out for Medicare each month is a little less than $100. But if you become ill and don't have supplemental insurance, you are in big trouble. And that can cost from $150/month for anything decent. So there goes a minimum of $250/month. Doesn't leave much, does it?

Ask a retiree about how their IRA has held up because they were saving so hard to SUPPLEMENT their income.

This economy has just taken a dump on our senior citizens and there is nothing they can do about it.

You are right about one thing, Jo Ann-our government is too busy taking care of themselves-stuffing ther pockets. All I can say , you either had a government job or you are very rich , because you have no clue what most people go though.

And taking out of your IRA is taxable, and if you take too much it shows as a higher income and then the Medicare payments go up.

Between a rock and a hard place.

Jo Ann, you are very fortunate to have had money over and above your essential needs to be able to put money aside for your retirement. You must be unaware, somehow, that there are vast numbers of people who just don't make enough to be able to save. It's very easy for someone like you to say "you should have saved". But if there is no money left over after paying for food, housing, clothing, insurance and gas, what are they supposed to have saved?

Another thing you haven't considered, Jo Ann. Some people save only to see it all go away because of life's circumstances. Take my situation for instance.

I worked hard all my life, just like many Americans. There were times I had money saved only to see it eaten away when a job was lost and the economy was bad enough to make finding another very tough.

Then I became ill with a condition that required $5000 per month of chemo to cure, and the cure rate was only %50. The condition was bad enough that I could no longer work, so I applied for SSDI. It took so long to get SSDI that all my savings were wiped out along with most of my possessions. It took so long that if it weren't for friends I would have become homeless.

People can rant and rave all they want about "they should have saved some money for retirement", but things don't work out that way for many. If you have money saved for retirement, that's great! Just keep in mind that you can loose it all in the blink of an eye.

What about people who have been disabled since the age of 18 and haven't been able to work? They (I) never had an opportunity to save. And believe me, I would have. I'm well aware that a savings of only 25 dollars per month starting at the age of 20 can eventually amount to over a million dollars with careful planning and investment - however I have never had an extra 25 dollars a month. Hell, there's one week left and my bank account reads $15.02 for my balance.

Seniors are actually LUCKY in a way, they get far more than disabled adults who have been disabled since coming of age. I get 689 dollars a month, most seniors get twice that.

If I had been able to save, I would have. But I wasn't able to. So what about me and the others like me? Do you want us homeless, sick on the streets, dying? Do we not also deserve to at least live a modest life? I would love a new pair of shoes, these ones from 10 years ago are really getting full of holes.

Seems to be some ignorance in some of these posts. Jo Ann, you apparently don't know your facts. We paid our SS at 6%, our employers also paid, and it was not meant to be a supplement. It is not a handout from your gov't, its our damn money. Your gov't took control of it when it was not supposed to and they have seen fit to raise taxes, raise medicare, see that the cost of products goes up and yet an alcoholic, a drug abuser can (at any age) get treatment and a check that by far surpases most SS checks. I know of several who are under 40 years of age that get SSI and that amounts to about $1200 mo. + medicaid which pays all of their medical.

If it wasn't for the sacrifices of our generation and our forefathers you wouldn't have such a pompous attitude nor would a few more on here. Apparently you do not know the sounds of weaping mothers, wives and children over a lost military member of their family. SS didn't come into play basically until the early 50s when it was enforced. You people that are spitting into the eyes of the elderly on your way up the ladder, will have to look them in the eye on your way down and you are on your way down. It won't be our fault. It will be your lying so called elected officials. Remember, you are not allowed to think for yourself...You and the likes of you are headed for something that you will not be able to control. I wish you alot of grits, homemade biscuits and water gravy to survive on. Oh...and plenty of firewood to keep you warm. We've already seen what you about to go thru. Good luck.

Seniors are actually LUCKY in a way, they get far more than disabled adults who have been disabled since coming of age. I get 689 dollars a month, most seniors get twice that.

That bugs me too, silvershadows. I believe that the minimum amount people receive from Social Security should be no less than the federal minimum wage for workers after taxes.

Exactly, James.

When you consider that the federal "poverty level" states that anyone making under $20,000 a year is to be considered impoverished, what does that make someone like me who receives $8,268 dollars a year?

And the kicker is, that we are PUNISHED for attempting to do for ourselves - a friend of mine who has also been disabled has managed to find a career she is capable of and has decided to start her own business. Note that she hasn't been receiving social security payments for about 7 years because she got married and her husband made too much money for her to receive an SSI check. Due to the headache caused by the paperwork getting her business license, she called the SS office and asked if her name could be removed from the "adult disabled" list in order to make processing the paperwork shorter. She was told if she did this she would have to pay back every cent she had ever received from social security. Her incredulous response was - "So we aren't allowed to get better?"

The Social Security cap should have been done away with from the very beginning. The more you earn the more you should pay.

I understand the concept of the cap but taxes are so full of loopholes anyway that this makes sure the rich pay to help the poor.

Very well put but no one is taking heed.

No one in any position to take heed that is. Our Congress is the best that money can buy and is exactly why a cap will remain in place.

You're right, Buford. Social Security is not a retirement system. It's actually a PUBLIC SAFETY program. And if the poor don't get enough to eat, then the poor WILL retaliate!

You are confusing two different numbers. SS COLAs are based on a law implemented in the late 1970s that bases the COLA on data from three summer months when compared to the same three months from the prior year.

You can thank Clinton and Boskin Commision , Lisa , for that-I call it "cooking the books" or simply stealing from the elderly , which by the way, is a Federal Crime already on the books. Maybe we need to call Eric Holder's attention to it or is it FBI ?- they are supposed to put felons in jail , right ? The whole Boskin Commision need to go to jail for commiting a Federal Crime.

You are wrong , Peter. Check what Clinton and Boskin Commision did.

Joe - at least according to what I saw on the web, that commission concluded that the CPI numbers being used to compute the SS COLAs was too high and was resulting in increases that were too big. I did not see any indication that their suggested changes were implemented.

If the COLA was determined as you suggested, the increase would have been less. For the last two years the inflation numbers were actually negative.

It's all in the interpretation isn't it? Or the definition and the slant in any given direction depending on which direction one needs the numbers to go.

okie joe, I actually believe that how they do it. THey go from the last raise.