04/01/10 Tampa, Florida – The fact is that Social Security is seemingly doomed, as, for the first time, this year more money will be paid out to beneficiaries than will be collected from workers.
I am trying not to laugh as I tell you this, but a lot of people are idiotically-unaware that this is a lot of bad news for many reasons, one of which being that the federal government has always spent all those excess Social Security contributions of the last half century or so, by simply taking the money and exchanging some new Treasury bonds for it! Hahahaha!
I laugh because it reminds me of when I tried that crap with my kids. I mean, how could I not? They had all this “idle” money in their piggy banks, or stashed in their “secret hiding places”, or stashed in their college funds, or jingling in their pockets, or left in their wallets and purses which were just lying around unattended.
Naturally, as they are all moronic Democrats, I thought they would appreciate my kindness in exchanging my personal IOUs for their money, under the theory that everyone could have a nicer life by my spreading their money around, and as a result, my esteem would grow, and my income would grow so that I could later redeem the IOUs, with interest, and everyone would live happily ever after.
Well, I will save you all the hysterical screaming and death threats when they discovered my scheme and they tried to force me to redeem the IOUs, which I couldn’t do because I didn’t have any money, which caused their crying and wailing to get worse, even after I patiently explained to them, so that they would understand and just shut up, “If I had any money, I would not have taken yours, you morons! You think the money to support a drinking problem and a golfing problem grows on trees or something?”
Well, the same thing is happening to Social Security, as there are now trillions and trillions of Social Security contribution dollars tied up in these bonds, some of which must now be, theoretically, sold to get the money to pay the Social Security beneficiaries, and soon the wailing and whining and finger-pointing will begin, making me live that nightmare all over again.
This at the same time that the idiotic Marxist-yahoo Obama administration is deficit-spending $1.6 trillion this year – 12% of GDP! – and almost another $9 trillion over the next 10 years! And then these trillions in ObamaCare on top of that! The utter preposterousness of it makes me laugh again! Hahahahaha!
So, at a stroke, the federal government has less money to spend and they are supposed to find buyers for bonds clogging up the Social Security system, although, of course, nothing like that will happen, as that is the magic of a fiat currency!
The government can just force the Federal Reserve to print up as much money, to buy up as many bonds, as is needed or even wanted, plus more to give itself as much money in excess of receipts as the government wants to spend, right up until the day when prices are so high because the buying power of the dollar is so low as a result of this monetary and fiscal insanity that the dollar falls to, literally, worthlessness! Hahahaha! Easy!
And don’t count on making more money to offset the higher prices that are coming as a result of all this massive expansion of the money supply by the Federal Reserve, as a new analysis by the US Bureau of Economic Analysis finds that the average per capita (every man, woman and child) personal income fell a whopping 2.6% nationally in 2009, which means that a man with a job and a woman with a job raising two kids who do not have jobs saw their income fall by 5.2%.
This is, beyond the catastrophe of a huge fall in income, but also a clear, clarion call to reexamine those pesky child-labor laws and put those kids to work!
It makes you wonder how we have done as well as we have when you read that they also found that the national average of net earnings declined 3.7% in 2009, too.
I’ve said it before and I’ll say it again; buy gold, silver and oil to protect yourself against terrifying, bankrupting, ruinous inflation in prices that is surely coming, or be the kind of person who stands around, terrified, bankrupted and ruined, muttering, “I should have bought gold, silver and oil, but I was too stupid to listen to that Wonderful Mogambo Fellow (WMF), or I could have looked at what happened all the other times in the last 4,500 years of history when thousands of other governments did this Same Stupid Crap (SSC)!”
If you had done either, you would know, clear as a bell, “Whee! This investing stuff is easy!”
The Mogambo Guru
for The Daily Reckoning
The Mogambo Guru
Richard Daughty (Mogambo Guru) is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise to better heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning , and other fine publications. For podcasts featuring the Mogambo, click here.
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I have just one question. How can you laugh at at time like this?
@ Brian, b/c it’s better than crying, HAHAHAHAHA!
If the mom makes 50,000 and her pay goes down 2.6% to 48,700 and the dad makes 50,000 and his pay goes down to 48,700 then the combined pay only went down 2,600 on 100k, ie: 2.6%, not 5.2% Mr. Guru. That’s Obvious Third Grade Math (OTGM)
“I have just one question. How can you laugh at at time like this?”
Easy, he hasn’t run out of liquor yet from pinching the kids’ money. Just like taking candy from a baby. Hahahaha!
“That’s Obvious Third Grade Math (OTGM)”
Well no one said he was smarter than a Fifth Grader. But that’s how easy this investing really is.
My experience is that people add up percentages only when greed is running high.
MY experience is that people pile up stacks of dollar bills when greed is running high.
Maybe, maybe. But then, the little prick is after gold, silver and oil, only. Ask any Southern Belle you can find…
about 2 days ago, on mad money, cramer spoke out against some of the theories on this site. one was about the banks, he said that it will never resemble what happened in japan, because while the japanese let their bad loans linger for years,the U.S. stepped in right away and fixed the problem.
also he said the japanese are savers and by saving could not pull their economy out of its slump, while the americans are spenders and will spend their way out of the crisis. i think that our politicians agree with him, because while the american people may try and buckle down and save, the government will take the people’s money by increasing taxes and spend it on stimulus programs.
Cramer? That goof can’t see the forest for the paper mill.
He also helped crash the market by scaring the hell out of frightened investors in 2008 – a$$hat.
Yeah. I paid into S.S. my whole life and the Gubment stole the money. Pretty funny. but get this. I’m in the process of filing my third personal bankruptcy. That’s right. Rolled over on the credit companies THREE TIMES. Hahahahaha