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Canuck57[_9_]

On 18/02/2011 10:38 PM, wrote:

That is also the fatal flaw in privatizing Social Security. You could
certainly see big increases in apparent value but that would fall off
pretty fast as soon as you cashed it in.
We simply do not have enough money coming into the system to support
the boomers. It doesn't matter it is social security or your 401k. You
still have 2-3 kids supporting each old person.

Most people, a huge majority, probably 80% or more would have been
better off if Social Security was deposited into a non-redeemable IRA.
A huge part of why Social Security is failing is because of government
skimming and bamboozling, not because enough wasn't paid.

For example, government borrows Social Security moneys for literally 6%
below it's real market value. Collected assets don't even track
inflation. By setting interest rates well below real market, they can
borrow SS for nothing. Over time this depreciates the value of SS.

At this point the fraud on SS has indeed already occured. So moving
forward, yep, there isn't enough money coming in. But I read even if
the US government didn't spend one sent on payout of SS, yet still had
the income, total bankruptcy is still inevitable. That is, the debt
problem is so huge that nothing short of a 66% reduction in government
spending will have a chance in hell. Either that or taxes must triple.

USA may very well be past the tipping point into perpetual structural
debt. Hyper-stagflation is inevitable. And with it, no one wants to
invest in a stagnant depreciating economy. If you tried to tripple US
taxation on business, they would leave the US in flocks. Some already are.

Obama has set the stage for USA bankruptcy. I really think the idea is
to accumulate all the debt into the US Fed then declare it bankrupt. At
which oint USD becoems worthless like toilet paper.

Did you know Washington DC creates more new dollars than the US consumes
in sheets of toilet paper?

--
Socialism is a great ideal as long as someone else pays for it. And when
no one is left to pay for it, they all can share nothing.