How Much Is Social Security in Danger?

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FACT: Social Security is solvent
as is at least until 2037 if left alone.
Are “they” getting ready to raid the
Social Security pension fund or privatize it? Christian
morality says it should be left alone for
the purpose for which it was intended. “The Fund”
can also easily be tweaked to remain solvent indefinitely.
Greed should not let us destroy a system which has cared for
many millions of Americans for three-quarters of a century.

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How Much Is Social Security in Danger:
What the Facts Suggest

“The Fund” will run out of reserves about 2037;
Then Still Pay Out Benefits at a Rate
of 78 Percent of Current Payments
(if no Adjustments are Made)

The Daily Walk with Love, May 20, 2020, by Paul Evans. This is a revision and republication of an older article from mid-2017. The facts haven’t changed but the Market keeps blithely climbing higher and higher. Like lemmings towards a cliff? Featured image/Social Security card courtesy of Please Share This Article!

There have been some alarming articles by credible sources warning that Social Security as we know it is about to end. For example, the alarmist headline in the Sovereign Investor runs The End of Social Security (Leaked Evidence Stumps Obama, Stuns Retirees.), a headline featured by no less than CenturyLink, and also How to Prepare for the End of Social Security on U.S. News & World Report, Money page. The Sovereign Investor did properly assess the dangerous state of the economy, with the quoted authority “Davidson warn(ing) that a 50% stock market collapse (as in 1999) is looming, that “real estate will plummet by 40%, savings accounts will lose 30% and unemployment will triple.”

From what I can see a 50 percent sudden drop in stock values is well within the realm of possibility, and in fact has been planned for. See From The Federal Reserve To A New US Republic Via A Global Currency Reset, The Daily Walk with Miracles, August 11, 2016, by Paul Evans, where I describe “the calculated ‘bubble’ created by the Federal Reserve and the investment banks. Unbelievably, according to the linked video’s excellent sources, $552.9 Trillion are invested in derivatives, mostly by just a few huge banks. This dwarfs even the U.S. national debt, which by the way now stands at $19 Trillion. The derivatives market stands at 7 times the total goods and services produced by the entire world in a year. When this bubble bursts, as it will (as Bible prophecy and Dr. Ron Paul both warn), the IMF (International Monetary Fund) stand ready to institute a totally new system, with a global currency reset, but the U.S. will find itself in very hard times, worse than the Great Depression of the 1930’s. (Or else, as the Royal Bank of Scotland website suggests, we are ripe for a 30-40 percent market correction, which MAY be more likely.) It will be blamed on Donald Trump but is in NO WAY his fault. This is completely the fault of the greed of the largest investment banks in the “wild wild west” of the derivatives market” as well as a super-bubble in the bond market. In this article I also describe the terrible situation America faces, The Next Debt Crisis? U.S. to Face $127 Trillion in Unfunded Liabilities By 2027,, August 13, 2015, by Melanie Pfeifenberger, which fact I had initially found from the reliable source, Forbes. The remedy for the situation will likely be traumatic to the average American.

[(IDEA: Money is the root of all evil, and with 40 major nations going off the dollar as the currency of international trade, more currency wars are out of the question. The ability of America to borrow is tied to international use of its currency, in trade, mathematically. Sooo… do away with all currency, paper and coinage, and put it all on plastic. While we get our economic house in order, isn’t an all-plastic currency basically like an “infinite, highly programmable extension or our debt,” at least to some extent? “Plastic makes it possible.” In other words it would give us a certain amount of time to get our economic house in order, and also to offset jobs lost to automation, as Donald Trump is straining to accomplish. And if you want to spread American values and our economic system, make investment in Third World micro-finance.)]

However, the Social Security Trust Fund is an institution theoretically entirely outside of the U.S. budget. As it stands now, it looks the “the Fund” is adequate to continue a full payout of benefits until about 2037-38. When the Fund is exhausted then, the revenue paid into it will be adequate to continue payouts to American Social Security and SSI beneficiaries at about 78% of its current amounts. Did you know that Americans pay Social Security taxes up to about $113,000 income a year, but income above that is not taxed for Social Security purposes? It was proposed to additionally tax income above $250,000 a year but this got nowhere in Congress. Nonetheless, the Brookings Institute has proposed ending Social Security benefits for the very rich, and Social Security’s viable lifetime would evidently be well extended if some amounts above the “cap” of $113,000 a year were made taxable for wealthier Americans. Either change the cap or perhaps deny Social Security payouts at all for those making over, say, $250,000 a year. There ARE easy fixes, we just need the will to enact them. We will either sink due to our own greed, or else we will find the moral fortitude to actually fix Social Security, long term.

The situation with America’s untenable, greedy, poorly conceived investments in derivatives, and our unfunded mandates going forward, do raise the possibility (as evidenced by the dire headlines), that the Congress is getting ready to raid “the Fund.” It’s been done before, and the United States is about the enter very tough economic times. One can only hope that the rich, influenced Congress is reasonable and that average Americans insist on their dignity as taxpayers so that the Social Security Trust Fund is largely left alone. As a monetary entity it stands entirely outside the budget and Christian morality suggests that it should be left for the purpose for which it was intended. Many millions of Americans are depending on it.

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