Social Security

 ..a good idea or just a scheme to get money into the stock market

for the benefit of the market and corporations?

It is said that, through the Magic of Compound Interest, citizens could earn much more than the historical 2.5% on their Social Security ‘investment’ if those payments went into personal, ‘privatized’ retirement accounts rather than the government ‘pool.’

Let’s take a close look at ‘Compound Interest’.  Often we are told of the wonderful power of compound interest (earning interest on both principal and previous interest) and how compound interest can make a modest investment grow into a great amount. For example: If you invested $10,000 in payments to your social security retirement account at 7% compound interest for 30 years; you’d expect your investment to grow to $76,122.52! Sounds Great! Compound Interest must truly make money grow! For a moment, let’s step out of the dream world hype of banking, financial planning and Wall Street. Just HOW DOES MONEY GROW? Where does the interest money come from? When you put money into an interest-bearing account, does it turn into something like rabbits that mate and quickly reproduce? What happens? The increase of money in your account had to come from someplace. To understand financial planning, economics, growing public and private debts, ever increasing taxes and prices, etc. we must learn and always remember what it is we now use for money and how ALL new money is created and put into circulation.

“..the actual creation of money always involves the extension of credit by private commercial banks.” —Russell L. Munk, U.S. Treasury Dept. If the private sector doesn’t borrow it, the government must or the money cannot exist. If you invest $10,000 in payments to your Social Security account and 30 years later get $76,122.56; somewhere, someone in the private sector or the government had to borrow $66,122.56 before it could get into your account! Now, you have the money. They have the debt which can never be paid because there is no way to create the interest money when money is created through the lending process. Therefore, the debt must constantly grow. Some claim that the interest money comes from increased production (worker productivity). But, when was the last time your personal production (goods and services) turned into money? Did you ever wave a magic wand over a shoe, shirt, bushel of corn, a new car, an hour of labor etc. and see it turn into money?

There are only 2 ways to get money from what we produce.

# 2: We can sell our production to someone in exchange for money that was created as a loan. Production NEVER turns into money.

Creating money as interest-bearing loans ONLY CREATES THE PRINCIPAL, NEVER THE INTEREST! The interest must be borrowed too! “Money for paying interest on borrowed money comes from the same source as other money comes from.” —Russell L. Munk, U.S. Treasury.

“Money that one borrower uses to pay interest on a loan has been created somewhere else in the economy by another loan.” — John M.Yetter, Attorney-Advisor, U. S. Treasury.

Interest is never created as money, only as a debt, (interest is always a cost of doing business) that must be constantly added into prices that are expected to be paid in money. This the reason that we have a $160 Trillion Debt but only a near $10 Trillion in liquidity. This makes it increasingly difficult to meet the rising cost of living. We work longer, harder, for less purchasing power. For every Social Security ‘investor’ to get a greater return there must be a constant rise in the total indebtedness and a constantly growing gap between the prices and the money supply. A bigger return on private Social Security contributions means the money will have less purchasing power than it did for past recipients!

America’s money was intended to represent someone’s production ‘monetized’ (declared money) and exchanged into circulation as a wealth to the people. This totally debt-free medium of exchange provided for and encouraged economic freedom. The principle by which we put all new money into circulation has been changed. Now our money represents our production monetized as unpayable debts placing us in economic servitude. Someone borrowed every penny in circulation including your paycheck or it could not exist. The loan only creates the principal. More borrowing is required to pay the interest. To have Social Security, we must ‘save’ some of the borrowed money. But, time only increases the indebtedness (compounding interest on the borrowed money.) Time does not increase the money supply. Unless we convert our money back to an evidence of wealth; there will be nothing but debt and a constantly lowering standard of living to pass onto our children.

Under the monetary principles of the 1792 Coinage Act, ‘money’ was created debt-free. A person worked first to get gold and silver bullion. Then, that producer could take it to the U.S. mint. The mint would ‘monetize’ (turn into money) it by assaying, weighing and stamping the bullion into coins. The producer would leave the mint with the same bullion he took in now ‘monetized’ in the form of coins that he OWNED. The coins would pass from hand to hand as our medium of exchange as they were spent or traded into circulation for other produce. The coins represented the wealth of the people as a wealth to the people. They did not OWE the money. They OWNED the money.

The quickest, most effective way for America to convert to a wealth money system is to have the federal government ‘monetize’ America’s public Roads, Bridges and transit systems. How? Clearly, you cannot stamp a picture on a piece of road and carry it around in your pocket! But, certificates’ can be created ‘representing’ the bid value of the road work. Think of them as ‘silver certificates’ representing’ the value of the silver coins. The certificates circulated as money–NOT THE SILVER. Social Security ‘dollars’ would buy a lot more if the unpayable compounding interest debt did not need to be added to the prices of goods and services. Americans would not even need Social Security if the unpayable compounding interest debt didn’t constantly destroy the purchasing power of a ’dollar’ and savings. In addition, when all we use for money is loan principal it may be possible for some to save but not everyone. A large Lobby stands to gain much in sales commissions from privatization of these ‘funds.’ Private SOCIAL SECURITY Accounts are not a good idea and will not solve the growing ‘money shortage.’ Remember your investment portfolio after 911?

Money does not grow!

The money supply only increases with more borrowing. When the loan principal is repaid it is uncreated (Extinguished) and withdrawn from circulation. Creating money as loans creates Economic Servitude and a mathematical impossibility as money to pay the interest is never created.

                                                   Money can’t reproduce it self!  Money does NOT Grow!

Congress should combine 3 of its powers to: promote the general Welfare, coin Money and established post Roads into one act! Monetize the value of building, upgrading and maintaining our public roads! Create the numbers. Spend them into circulation in lieu of taxation or bonding as a debt-free, final payment earned as wages through production that benefits the general public. As soon as Congress does so, your life, the life of every American, every person, would begin to improve immediately.