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continuation of Social Security System…..

There is a major problem though. The Baby Boom Generation (ages 50-62) will start retiring this year and will continue to do so through 2017. The Baby Boom generation outnumbers the next two generations (the workforce remaining) 4 to 1. There will not be the tax base to support the amount drawn out by the Baby Boomers. Mathematically, the USA SSS is inevitably doomed. Anyone 45 and under knows it will not be available. Those who think it can be fixed haven’t looked at the very basic math.

The money is gone. There are more Baby Boomers drawing from it than there are work force aged people paying in. There are three options to meet the demands. Raise taxes to the tune of $43,000 per household, slash government spending by 60%, make people work longer or a combination of them. However, any repair had to be in place in 1996 to take advantage of the remaining working years of the Baby Boom generation. Now, it is too late.

There is another detail that will turn you off even further. This information can be found going over financial news from most reputable websites. The US Congress decided to manipulate the numbers in 1980 on how the rate of interest was calculated. They removed the cost of fuel and food from the equation and focused it on durable goods like furniture and such.

Why would they do this? Anyone who lives here and pays a slight bit of attention to the world around them knows this answer. The cost of food and fuel go up the fastest. That makes the rate of inflation go up fast. If you calculate the food and fuel costs into inflation, you have an annual number of 6-9% instead of the 2% they report. We know from the pain at the pump, heating bills, and food what impacts our lives the most.

Why does it matter on how they calculate interest? Many of the programs in which the USA Federal government pays out on are tied to the inflationary index or calculated rate of inflation. The Social Security payments are tied to them. So each year, your retired parents lose about 6% of their spending power a year. The money doesn’t go as far because of the food, fuel and heating bills. People lose their homes or have to choose between heat and food or medicine. This 2008-2009 winter is predicted by the Farmer’s Almanac, standard recorded weather patterns for 400 years, and solar activity (Yah know the sun which they conveniently ignored in the global warming hysteria), all point to a very cold winter.

So when the bills for your retired parents get out of their range, you can thank the US Congress for betraying the public trust on Social Security, failure to have any comprehensive energy plan for 30 years, and jacking up the food costs with the poorly thought out corn ethanol legislation.

Thank you,

Anah