Printer Friendly

eMail Article

July 30, 2005

The Social Security Sting! One of the Great Scams!
by Wayne Krautkramer

We constantly hear of the Great Depression of the 1930's. We are never told that the depression of 1896 was far worse! Why not?! The Depression of the 1930's was engineered to return the US to its prior status as a financial slave to the Corporation of the City of London!

Milton Friedman did us a great service by loudly proclaiming the insanity of the massive contraction of the money supply in 1929 and 1930. This simple act created the Depression of the 1930's.

The question is why? We must now use the time tested the criminal investigative rule of Cui Bono?

The socialists had to find a way to begin financing their utopia without a revolt. They were under increasing pressure from the newly franchised voters to deliver the bacon. In 1920, the 19th Amendment extended the right to vote to women.

The Great Depression of the 1930's was created to put fear and uncertainty into the American public. A free nation was to be broken, and redesigned into a socialist utopia. To accomplish this, total economic disruption had to occur. A fearful and desperate population would grasp onto any hope.

A general tax increase was out of the question in the 1930's. Many states allowed racetracks to open for gambling as they became desperate for revenue. Each year became more depressed.

Then the Roosevelt administration pulled the Social Security rabbit out of their hat. No one would object to a government security program during a depression. Roosevelt created the Social Security Act of 1935. Withholding taxes began for the American worker in 1937.

Before the New Deal of the 1930's workers received their pay in cash in a pay envelope with no deductions. The income tax had been around for 23 years and the income tax did not tax wages. People were paid in cash in a pay envelope, not by paychecks!

After 1937, the withholding technique of Social Security has provided the socialists with enormous amounts of tax money, without calling it a tax. It has also allowed the government to see, tax, and control your earnings!

Now you will say, wait a minute! Social Security is not a tax, but a contribution to the Trust Fund.

Wrong! Social Security withholdings were always just a tax!

But Roosevelt said there was a Trust Fund! Yes, he did say that!. But Roosevelt lied to your grandparents to get support for his collectivist scheme!

Can I prove this? Absolutely. In No. 837, Steward Machine Co. v. Davis,--U.S 1937 The Supreme Court ruled that the Social Security Act lays a special income tax upon employees to be deducted from their wages and paid by the employers. Further, the Court found that the proceeds of both taxes are to be paid into the Treasury like internal-revenue taxes generally, and are not earmarked in any way!

Where has all the money gone? Round up all the usual suspects! Military spending, entitlements, foreign aid, junkets for the Congress, etc.

You might ask, if this is true, where is the money going to come from to pay for me? That's a very good question.

We must first define just what programs we are talking about. Social Security is just part of the problem. We must also factor in Medicare, and Medicaid! The best estimate at this time shows the present value of unfunded future liabilities for Social Security and Medicare to be at least $45 trillion (some nine times the size of our "National debt"). This means that the government would need $45 trillion in the bank today to meet the commitments that the politicians have promised to pay!

To understand the difference between the estimate of $45 trillion, and the current reported national debt, you need to know the assumptions.

The reported national debt is now some $7.6 trillion. This includes only expected expenses that are payable this fiscal year. The $45 trillion is the current value of all of the commitments the government has promised to pay both now, and in the future.

However, the debt picture may not be as gloomy as it first appears. There is an escape hatch that the government can use.

You have no legal right to Social Security!

Yes, I know! You think I've gone around the bend with this statement. I must be wrong. Surely the AARP would have told us if this were true! Dr. Lorraine Day exposes the AARP, and explains how they really make their money!

Surprise. I'm absolutely correct! The Supreme Court has already ruled that you have no guaranteed right to Social Security!

To engraft upon the Social Security system a concept of 'accrued property rights' would deprive it of the flexibility and boldness in adjustment to ever-changing conditions which it demands." - U.S. Supreme Court, in Fleming v. Nestor, 363 U.S. 603 (1960).

"The Social Security Administration (SSA) avoids describing rights to future Social Security benefits in terms of guarantees, referring instead to "obligations." The concept of Obligations imply that, at any given time, Social Security's benefits need only be determined by current law. Many events could move Congress to modify benefits, making them lower than a worker might expect. Such changes do not violate the definition of an obligation. (In fact, if trust funds are depleted, as many analysts predict, even the size of the obligation under current law is uncertain. 1) According to SSA, obligations differ from guarantees because they can be changed over time." The Social Security Administration admits that an obligation is not a guarantee! So there may not be a problem after all. The only people who need to worry about the issue are people who are counting on receiving Social Security, Medicare, and Medicaid. "What Me Worry?"

The wheel has turned full circle, and the US is a massive debtor to the world. All those fees and a lot of the interest payments go to whom? The Federal Reserve System and the other international banks are taking their share, and we have lost control of our financial destiny.

Of course you don't believe me! You say that I'm a negative thought thinker! Perhaps the latest forecasts from the Congressional Budget Office will shed some light on the problem.

The first chart is the CBO's forecasted budget surplus or deficit through 2075. Because this is an official government release, it is reasonable to assume that it is biased towards the most favorable interpretation of the data. The current plan seems to be killing ourselves by 2025, and then let the chumps (the next generation) deal with it.

The second chart from the CBO is their current forecast of expenditures through 2075. Pay special attention to the forecasted interest expense, and the projected outlays for Medicare and Medicaid!

This chart proves that the government is forecasting a future where most of the spending is going for interest and social costs. The idea of spending money on anything other than medical costs, interest rates, and retirement assistance is soon to be an alien concept. The US has become some sort of an aging mental ward where the inmates have government issued credit cards!

The last chart shows who we paying all this interest to! This is the "tell" that proves the US has returned to its prior status as a financial colony. Remember, the Federal Reserve officially states that no one owns it.

OK. We are supposed to believe that the Federal Reserve is some totally independent group that reports to no one, and is owned by no one. This unique entity just happens to control the money supply of the US. This might make perfect sense to someone in a drug rehabilitation program!

This chart is based on 1999 data supplied by the Treasury Department. When one combines the interest paid to the Federal Reserve and Foreign institutions, we find that we are paying over 60 percent of all interest to foreigners. The percentage is higher in 2005 than it was in 1999.

The CBO chart forecasting government expenditures (shown above), is predicting much higher interest rates. I'll bet that your grandchildren are not going to be impressed by you. We have seen the future, and it's UGLY!

Now it's time to return to my opening argument. I stated that the Depression of the 1930's was engineered to return the US to its former status as a colony of the Corporation of the City of London.

Actually, the brutal Depression of 1893-1897 was also engineered to break the independence of the US.

The proof of the premise follows. We must use deductive logic, as we can't expect them to admit this publicly!

Has anyone noticed that those terrible economic collapses to have disappeared since we returned to our debtor status under the British Crown? It has been over 70 years since we have had a financial problem. This could be mere a coincidence, but we must ask one question.

Would you engineer the financial collapse of a country that was paying you a lot of wealth through interest payments? I'll bet that you will say no! I'm also betting that your financial masters will say no!

The master watches after his slaves, once he has conquered them! Otherwise there would be no point in having slaves, financial or physical. Slavery is illegal, you say! Yes, physical slavery is illegal. Financial and psychological slavery is the norm! Why do you think that they banned physical slavery? They discovered new technologies. Pharmaceuticals, television, and Social Security withholding!

"Welcome to the Hotel California
You can checkout any time you like, But you can never leave!" -- The Eagles

Wayne N. Krautkramer
http://onlypill.blogdrive.com/

Image rendition and html coding Copyright © 2000-2008 SafeHaven.com

« BullionVault.com -- Buy gold online - quickly, safely and at low prices »
« Honest Money: A History of U.S. Gold & Silver Currency -- by Douglas V. Gnazzo »

« Opinions expressed at SafeHaven are those of the individual authors and do not necessarily represent the opinion of SafeHaven or its management. Articles are available via RSS/XML. Please visit RSSHelp for instructions. »