Trust?
“Social Security is broke beyond belief,” economist Laurence Kotlikoff told The Brink, Boston University's research news website. “Its unfunded liability is $65.9 trillion — twice the size of official government debt.”
“Trust” and “government” should never be used in the same sentence. Nor the same paragraph. Not even on the same planet.
The Social Security “Trust Fund” Is Just a Stack of IOUs in a West Virginia Filing Cabinet
The Social Security Trust Fund every retiree is relying on is not what most Americans believe it is. Social Security is a scam. They took money out of your paycheck and stole it. Unless you are retiring soon you will never get any of it back.
The brutal truth is this $2.85 trillion fund, which is supposed to keep the Social Security program solvent until the year 2033, has no money in it whatsoever. ZERO! Not only that, it is $66 trillion in debt due to unfunded liabilities.
So where is the money? It doesn’t exist. The government spends all the Social Security tax money in the year they receive it, replacing it with the paper IOUs that now sit in the filing cabinet in Parkersburg, West Virginia.
President George W. Bush made that clear on a little-remembered visit to Parkersburg in April 2005:
"A lot of people in America think there's a trust, in this sense -- that we take your money through payroll taxes and then we hold it for you, and then when you retire, we give it back to you. But that's not the way it works.
"There is no 'trust fund,' just IOUs that I saw firsthand, that future generations will pay -- will pay for either in higher taxes, or reduced benefits, or cuts to other critical government programs.
"The office here in Parkersburg stores those IOUs. They're stacked in a filing cabinet. Imagine -- the retirement security for future generations is sitting in a filing cabinet."
While the public is generally unaware of this, those in the government have always known.
The government steals the money from Social Security to pay for transgender sex changes in Venezuela. Well, not really. They claim that is what they are doing but the money actually goes into their pockets. Foreign aid is code for money laundering. That has become all too evident with the unbelievable situation in Ukraine.
Social Security is Broke, but American Taxpayers Just Gave Ukrainian Pensioners a Double-Digit Raise
As American taxpayers paying into Social Security today stare down the barrel toward substantial cuts to their own benefits, estimated to take place in 2034, they can at least take solace in knowing that all categories of Ukrainian pensioners will get a 20% raise in March 2023. “As early as this March,” says Ukrainian Prime Minister Denys Shmyhal, “the government will index pensions by 20%” for about 10 million Ukrainians.
'Social Security is broke beyond belief'
This Boston University economist warned the government safety net is full of holes.
The Looting of Social Security: The So-Called Trust Fund “Bonds”
Bureau of Public Debt Director Susan Chapman shows President George W. Bush the IOUs that represent the Social Security Trust Fund in 2005.
That's why we retired at 62.
The interest bearing IOU’s that you are referring to are “Special Issue Treasury Bonds”. They are “Special” because these bonds will be paid first. Before any other debt is paid. Treasury bonds are considered the safest investment available. That’s why the Social Security Trust Fund invests in U.S. treasury bonds. Treasuries are held in central bank reserves all over the world.
Don’t worry about the money for Social Security. The Federal Reserve can and will print an infinite amount of money to pay Social Security benefits. The uncertainty is; will there be enough goods and services to buy with those benefits?