Social Security Explained – Equal In Poverty

SOCIAL SECURITY EXPLAINED:

 

Jane:   Why do we have Social Security?

Mary:   Because 80 years ago people didn’t save money so our president decided to mandate savings.

Jane:   You mean I ‘have’ to pay into this ‘savings account’?

Mary:   Yes!   Of course, Silly.   You pay and your employer pays too.

Jane: Why?   Can’t I just put money into my own savings?

Mary:   Yes and no. You can save as much as you want, but the government wants to make sure you do in case you don’t… it’s a law.

Jane:   So why don’t I just invest in the stock market?   Why can’t I save that way?

Mary:   Because 80 years ago the stock market crashed and everyone lost all their money.   Many people starved and many more died.

Jane:   So Social Security will keep me from starving?

Mary:   No.   Because what they pay you is based on the cost of living 80 years ago and so you will still starve.

Jane:   But doesn’t the government invest my savings?

Mary:   Yes, but they don’t tell you how or ask your permission, they put the money wherever they want.

Jane:   But it is my money, right?

Mary:   Kinda yes, kinda no.

Jane:   What does that mean?   Can’t I get it back?

Mary:   Sortof.   You get some of it back each year after you get old.

Jane:   But what if I die before I get old? Does all the money I put into savings go into my estate?

Mary:   Silly you!   No way!   The government confiscates the money.

Jane:   But it was my money!

Mary:   It was before you gave it away.   It is kindof like charity.   You give it to them and they use it however they want and you can only hope it is going to benefit the purpose for which you gave it to them…

Jane:   But the purpose of Social Security was to benefit me!   And I didn’t give it to them willingly!

Mary:   Well now, yes you did.

Jane:   WHAT?? That makes no sense!

Mary:   Of course it does.   The government takes your money, puts it into a witch’s brew of entitlement programs to support a bunch of illegals who are escaping poverty so that you can live in poverty when you refuse to work any longer. That way, everyone is equal in poverty.

Jane:   But isn’t that exactly what FDR said he was creating this mandated savings for?   To make sure no one ever lived in poverty again?

Mary:   Boo –

Jane:   Mary!   So is poverty reduced now?  I mean compared to 1930?

Mary:   HAHAHAHA!   We only started measuring poverty rates in 1959, not 1930, not 1920.   And the numbers are all estimates.   You know, like the numbers used by the CDC and WHO.   Everything is an algorithm.   And the algorithm is only so good as what concoctions the Masters choose to insert in the formula.   They make it all up and we are told to believe it.

Jane:   But I thought that was what China did – not the US?

Mary:   Oh Jane…   Haven’t you figured it out yet?   We are China.

US DEBT: The Good, The Bad, the Ugly – AND The Solution

On the face of it, Dave Ramsey is the go-to king for helping people pull out of their personal debt crisis.   Typically it involves restructuring the current debt, forgiveness of some of the debt, and the creation of a revised budget.

But that type of approach is not as effective when it comes to the debt of a country, and what has now become the debt of the globe. They are not comparable as apples to apples.   In the Ramsey scenario – the typical analysis reveals the person/household is in a negative to assets and income. The US debt is typically compared to GDP, which is loosely defined as income – not assets. The GDP of the US currently stands at just over $22 trillion.

Global debt is estimated to be between $250-335 trillion.   Is it even possible to ever pay that amount of money, to be debt free, or even close? Is it even necessary?

The short answer – NO and NO.

The World Bank, the IMF, the UN, always suggest that wealthier countries simply forgive the debt of the poorer countries, particularly in Africa, so that they can borrow more money that they will never be able to repay.   As a result, those poor countries sell their assets whether it is land or the resources on/within the land.   Until they have nothing left to sell – and the creditor takes control of the country.   Which is similar to the micro-lending Ponzi schematic.

The IMF advocates for “voluntary sovereign debt buybacks’.   And cites corporations as a model example.  That too is a blah economics understanding.

Assuming the number that is dangled in the atmosphere is correct and the US debt is roughly $26 trillion, the US would have to sell something, given the available cash on hand is inadequate.   In order to sell anything, the US would need a buyer with cash on hand, or at least a sufficient portion to give the deal credence.   So you have to sweeten the deal.  How does that work?  Ask a businessman/woman.

Only 30% of the debt is foreign owned – $7.8 trillion. Of the foreign holdings, the two largest holders are: China which owns about $1 trillion and Japan $1.3 trillion.   The remainder is disproportionately lumped into retirement obligations including Social Security which is $2.9 trillion, military pensions, government pensions and Medicare which account for an additional $2.1 trillion. Much of these funds are pushed into the General Fund so that they can be disbursed for emergency use and invested for liquid gains. Which is why these moneys are not sitting in a proverbial bank account earning zero percent interest and doing nothing.  HELLO!

While there is no point in buying back treasuries that are not linked to retirement, if we simply wanted to buy back foreign debt that would only amount to selling assets worth $8 trillion (rounded).

What does the federal government own?

The government assets are divided between those above ground and those below ground. Above ground includes:   land, buildings, levees, dams and hydroelectric facilities. Nothing that we ‘want’ to sell. Below Ground includes:   mineral and oil rights and leaseholds.   The asset that would generate the most cash is oil and gas resources valued at roughly $128 trillion.

That means if we sold reserves valued at $8 trillion, we would only be shorting our asset reserve by 6%. Both China and Japan are oil poor. In 2019, Japans oil imports came predominantly from Saudi Arabia and UAE. The value of those imports to Japan totaled $130 billion in 2019.   The value of oil usage annually in China is roughly $150 billion.   That would give them a breakeven on the purchase of US reserves/debt exchange of roughly 8 years.

The internal debt for pensions and such is a constant flowchart.   In other words, an expanding workforce creates the wealth to support the annual debt load.   If you contract the workforce and their paycheck volume, then Houston – you have a problem.

Everything in this world is based on one core premise:   Expansion – more people. It is the reasoning behind the mass migration of refugee illegal immigrants into Europe.   Their expansion had become a negative growth with birth rates plummeting given abortion rates rising exponentially.   People wanted more money to hoard on themselves – and children sopped up that hoarding.   So birth rates dropped to such an extreme that the very core basis of continuation as an economy began a backpedal that gained speed!

Soros convinced Merkel that allowing massive migration would help that economic curve as these immigrants contributed to society and were productive.   Obviously, that was a lie, and as soon as the unchecked immigration flooded Germany, Soros declared that Merkel had made a ‘fatal mistake’.

Merkel’s legacy will be rife with ugly regard.

And so, the Shadow Ingrates discussed how they could destroy the global economy in the shortest span of time given all of Europe was already precariously in a recession.   And they devised a pandemic.

Locking down the global economy, this was their final arrow.   Their quiver was thus empty.   They believed they had won.   The EU caved, the respective governments wholly willing to support a further indebted destruction.

But there was – One Man.   President Trump.   And despite all our allies foaming against the US, President Trump, America, and The People, our President defied what NO OTHER government dared.

Make America Great is about realigning our economy with the people.   It is about NOT giving up.   It is about curbing our deficits so as to curb our debt.   And I believe, if we were left to our own resources under a Trump presidency – we would be An Economical Power House working For The People – instead of For the Corporate Cabal/Mafia.  

And THAT is what they fear – the most!