Thursday Sep 20, 201212:59 AM GMT
Fed destroys social security, retirement plans
Thu Sep 20, 2012 12:57AM
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Last week the mainstream media hailed QE3 as the "quick fix" that the U.S. economy desperately needs, but the truth is that the policies that the Federal Reserve is pursuing are going to be absolutely devastating for senior citizens.

 

By keeping interest rates at exceptionally low levels, the Federal Reserve is absolutely crushing savers and is systematically destroying Social Security. Meanwhile, the inflation that QE3 will cause is going to be absolutely crippling for the millions upon millions of retired Americans that are on a fixed income.

 

Sadly, most elderly Americans have no idea what the Federal Reserve is doing to their financial futures. Most Americans that are approaching retirement age have not adequately saved for retirement, and the Social Security system that they are depending on is going to completely and totally collapse in the coming years.

 

Right now, approximately 56 million Americans are collecting Social Security benefits. By 2035, that number is projected to grow to a whopping 91 million. By law, the Social Security trust fund must be invested in U.S. government securities.

 

But thanks to the low interest rate policies of the Federal Reserve, the average interest rate on those securities just keeps dropping and dropping. The trustees of the Social Security system had projected that the Social Security trust fund would be completely gone by 2033, but because of the Fed policy of keeping interest rates exceptionally low for the foreseeable future it is now being projected by some analysts that Social Security will be bankrupt by 2023.

 

Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years. The collapse of Social Security is inevitable, and the foolish policies of the Federal Reserve are going to make that collapse happen much more rapidly. The Economic Collapse

 

FACTS & FIGURES

 

QE3 was announced on September 13, 2012. In an 11-to-1 vote, the Federal Reserve decided to launch a new $40 billion a month, open-ended, bond purchasing program of agency mortgage-backed securities; to continue until at least mid-2015. According to NASDAQ.com, this is effectively a stimulus program which allows the Federal Reserve to print $40 billion dollars a month for an unlimited amount of time. nasdaq.com

 

Ratings firm Egan-Jones said it believes the Fed's decision "will hurt the U.S. economy and, by extension, credit quality." As a result the firm once again slashed the U.S. bond rating bringing it down to AA-. Federal Reserve chairman Ben Bernanke acknowledged concerns about inflation. foxbusiness.com

 

The average rate of interest earned by the Social Security trust fund has declined from 6.1 percent in January 2003 to 3.9 percent today, and it is going to continue to go even lower as long as the Fed continues to keep interest rates super low. The Economic Collapse

 

Two out of three Americans (67%) believe Social Security and Medicare costs are already creating a crisis for the federal government (34%) or will do so within 10 years (33%). The vast majority believe the programs will create a crisis at some point. Gallup

 

A study obtained by CNBC says Americans are $6.6 trillion short of what they need to retire. The study, conducted by Boston College's Center for Retirement Research, says savings have been squeezed by declines in stock and housing values. cnbc.com

 

In America today, millions upon millions of senior citizens are very deep in debt. In fact, more elderly Americans than ever before are going bankrupt. Millions of others are living in extreme poverty or are just barely getting by on meager fixed incomes. Meanwhile, the price of food is going up, the price of gasoline is going up, the cost of heating homes is going up and health insurance premiums are absolutely soaring. The American Dream

 

ISH/SM

 

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