Saturday, January 29, 2011

The Social Security Crisis in 2037

Social Security currently has a $2.6 trillion surplus. It has enough to pay every penny of SS obligations through 2037, at which point it will "only" have enough to pay "only" 78%.

We have 26 years to figure out a solution. But conservative leaders seem to be trying to scare us into thinking we have to act immediately!

I believe that they are trying to scare us into thinking here is an immediate problem so they can "privatize" it and give that $2.7 trillion to Wall Street. Then Wall Street executives will get even higher bonuses (and make even higher contributions to conservative politicians) by playing with our money.

When Wall Street collapsed because of the bad investments they made, aggregate losses for (i) the stock markets, (ii) housing and (iii) retirement savings totaled $8.3 trillion. Since peaking in the second quarter of 2007, household wealth is down $14 trillion.

Because of its defaults, bank failures and losses, Wall Street had to be bailed out by the US Government.

The United States has never defaulted on it obligations. Not a penny.

So which which is the safe investment of our money? Wall Street or the US Government?

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