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Fraud At The Heart Of Social Security: It's Really $76B In the Hole THIS YEAR

Photo:  What's in store for America's retirees (Fancy Feast?)

By Dr. Pitchfork

This is an amazing piece of analysis by Charles Hugh Smith.  Most articles on Social Security are (let's be honest) boooor-ing, but this one uses publicly available data to show that Social Security is $76B in the hole -- THIS YEAR!  That's $76B, plus interest.  No other analyst has actually looked at the flow of funds at Treasury to see exactly what's going on.  If you were told that Social Security is "solvent" until 2037 or some-such, then you were being lied to.  Read this if you want the truth.  Be sure to click through to the full article so you can see the numbers for yourself.


The Fraud at the Heart of Social Security

by Charles Hugh Smith

To understand the fraud at the heart of the Social Security Trust Fund, we start with a very simple fact: cash can only be spent once.

There are two frauds at the very heart of the Social Security system, and I am going to describe and source them in detail.  After spending a number of hours poring over public data from the Social Security Administration (SSA), The U.S. Treasury and the Congressional Budget Office (CBO), and additional hours searching the Web for other published analyses, I can state with some authority that there are no published analyses or accounts of Social Security which incorporate the actual outlays and receipts from fiscal year 2010 in a context which includes the Social Security Trust Fund.

In other words, all published analyses are based either on SSA or CBO estimates, not the actual numbers from the Treasury, and all media reports I could find are simply cut-and-paste repetitions of these estimates.  I cannot find a single source which provided any evidence of digging through the data and assembling a coherent picture of the Social Security system.

The media simply repeats "conclusions" published by "official sources" based on estimates, not facts. The laziness this implies is staggering. Meanwhile, pundits such as Paul Krugman and Robert Reich, however knowledgeable and talented they may be, have obviously never performed a single minute of original data collection and analysis of the voluminous public accounts available to anyone with a computer and web browser.

If this is the best our most prestigious pundits and media resources can manage, then we truly are in dire straits.

All claims that Social Security is "secure for decades" are based on bogus fantasy-estimates, as are claims that the Trust Fund is anything but a carefully contrived fraud.  I am rather shocked--and I don't shock that easily--that it comes down to me, the classic independent-journalist "blogger in old blue jeans" to actually assemble the data and draw the simple common-sense conclusions which reveal Social Security as a fraud with two components: the bogus estimates, and the bogus Trust Fund.




Kotlikoff says we're already bankrupt...

Just listen...


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Reader Comments (18)

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read this story...
Jan 17, 2011 at 3:43 PM | Registered CommenterDailyBail
Jan 17, 2011 at 3:43 PM | Registered CommenterDailyBail
How Much of Your Money Wasted on ‘Climate Change’? Try $10.6 Million a Day

While reading the budget requests for FY 2011, remember to be "civil."


Check the American Association for the Advancement of Science’s 2011 budget request, and go to chapter 15: Climate Change in the FY 2011 Budget. The numbers are staggering. In 2011, your government will spend $10.6 million a day to study, combat, and educate about climate change.

The big winner in the climate change money train is the National Science Foundation — they are requesting $1.616 billion. They want $766 million for the Science, Engineering and Education for Sustainability program, a 15.9% increase from their last budget. They also need another $370 million for the U.S. Global Change Research Program (USGCRP), an increase of 16%. They say they also need another $480 million for Atmospheric Sciences, an increase of 8.1%, and Earth Sciences, up 8.7%.

Oh, and $955 million for the Geosciences Directorate, an increase of 7.4%.
Jan 17, 2011 at 3:45 PM | Registered CommenterDailyBail
Well, the media have obviously done a terrific job of burying any history about the decision in Flemming v. Nestor from 1960, where the feds were forced to admit in their brief submitted to the court that everything they they had told the Amerikan sheeple from day one about SS was total fucking bullshit. Otherwise, I would think that there would have been no need for the author of the article to dredge this stuff up.
Jan 17, 2011 at 4:20 PM | Unregistered CommenterBig M
Now we get 2% of our S.S. deduction back on our checks, that will help speed the demise.
Jan 17, 2011 at 4:53 PM | Unregistered CommenterS. Gompers
But wait, were just holding our head above water here. So 2% of almost something means, "Nothing" to us.......almost enought to buy a can of Beer for saterday night.
Jan 17, 2011 at 5:34 PM | Unregistered CommenterTexas Dar
Jan 17, 2011 at 5:53 PM | Unregistered Commentermike hunt
Nice research. I agree with Mr. Smith's supposition that the missing trillions in SS represent a fraud on the people and companies who had that $2.6 trillion withheld... well, that hardly seems the right word. More like stolen, or taken under false pretenses, like a confidence game... yeah, a fraud.

The surpluses began in 1983 because that is when Alan Greedspan suggested it. It could be that the Central Banker is also a Master Fraudster, and he set up the fund with no marketable bonds deliberately. We should ask. In this new civility era, I suppose water boarding is out of the question. As to the eventual demise of the nonexistent surplus, in the Greedspan plan the SS system would revert to a pay as you go as it was pre-Central Banker fixing. The surplus was specifically to pay for the post war generation that is larger in proportion than the generations following. If the same Central Bankers and political wankers had not tanked the economy, if jobs were plentiful and wages strong, the problem would not appear as dire as it does now. It is one symptom of worker distress, with older workers retiring even when they don't want to because they can't find work, and younger workers not able to board the hamster wheel and start their own upward mobility to utter serfdom.

Once again, those in positions of power and knowledge have curiously failed us, and to be politely civil we must chalk it up to ongoing massive incompetence and never, ever mention the nagging belief that they are corrupt instead.
Jan 17, 2011 at 6:09 PM | Unregistered CommenterG Street
So what are the alternatives to the SSA deficits?

1. Continue to over-prescribe fatal drugs from the big pharma companies (reduce population)
2. Continue to make access to medical care difficult and expensive (reduce population)
3. Continue to engorge americans on preservatives, GMOs, and other food additives that will poison
individuals in chronic terms (reduce population)
4. Continue to ignore massive pollution problems (gulf oil spill) that chronically poison people (reduce population)
5. Continue war and other imperialistic actions (reduce population)
6. Continue to release other poisons, biological agents, radiation, chemicals into the air, water and food (reduce population)
7. Continue other ponzi financial schemes and fraudulent foreclosures to result in more homelessness (reduce population)
8. Continue to inject controversial among the sheep/cattle so they will kill and maim each other (reduce population)
9. Continue to utilize false flags that kill thousands of innocent lives (reduce population)
10.Continue to create psychoactive drugs so people are more prone to kill themselves (reduce population)

Well....how many million do you think that will kill? I can go on but I think we're at a point where we can manage the budget now.
Jan 17, 2011 at 7:05 PM | Unregistered Commenterdogismyth
Welcome to Agenda 21. But they will never reach a point where they will manage the budget.
Jan 17, 2011 at 7:14 PM | Unregistered CommenterS. Gompers
Lol...you're so right Gompers. In fact, it makes you wonder why they call it a budget when they keep raising the debt limit. The one (and possibly) logical solution would be to revalue gold at $5,000 / oz. Of course that would mean someone would have to verify the integrity of the US gold holdings. Bahahahaha......

Tunisia baby. Its the revolution model that keeps on giving!! And I can guarantee you that there are few Arab leaders paying attention and rethinking things.
Jan 17, 2011 at 11:44 PM | Unregistered Commenterdogismyth
OK ... its time to get get some facts straight right from the Supreme Court ....

THERE IS NO INDIVIDUAL TRUST FUND, and there is no RIGHT to social security, see ...


Since then, nothing has changed. Its a PONZI scheme.
Jan 18, 2011 at 3:13 AM | Unregistered CommenterArti Choke
There is a "right" to pay into it, just not a right to receive it.
Jan 18, 2011 at 7:58 AM | Unregistered CommenterS. Gompers
Speaking of retirees..........

Unsealed files tell David vs. Goliath tale



Dever’s ordeal began in 2004, when a banker called Oppenheimer’s general counsel to report that Toussaint, who worked in the Boston office under Dever, was depositing checks from the retired Fall River couple’s Oppenheimer account into his own Wellesley bank account. Instead of referring the matter to a top company lawyer or to the authorities, as is standard practice, the general counsel at the time instructed Dever to look into it.
Jan 18, 2011 at 10:36 AM | Unregistered Commenterjohn
@ dogismyth

You know what I know. Its hard to get people to belive the goverment is out to kill us. One way or an other, they are after us. But in the short term, read this.
Why Obama will repeal ObamaCare within 60 days


And Boehner's response? As Eliza Doolittle said to Professor Henry Higgins, "Not bloody likely!" Zero and the Dems (and the Enemedia) are going to get the shock of their lives when they learn what Boehner has planned for them.

Get ready for this, folks, for it's going to knock the polka dots off your undies. This is going to make Boehner's bones.
"Its getting close to having a big party"..................................what I wouldent give to watch Creepy Little Zero, sign away his health care bill by force from the Rep......!
Jan 18, 2011 at 2:35 PM | Unregistered CommenterTexas Dar
Its just another circle jerk Texas Dar. Boehner's a fucking douchebag just like most of Congress. BFD...it still does not change our situation with increasing prices, access limitations, exclusions, insurance fraud, no patient privacy and 10s of millions of uninsured. Our health needs is a fucking game to them. They could care less unless it affects them, their family or other elite scum. I have no insurance and often wonder why the government doesn't subsidize cheap clinics. To get a goddamn prescription for something simple (antibiotics, pain meds, conjunctivitis, etc) you have to pay out the nose. I pay more as an uninsured patient than those with insurance. I live largely by natural remedies with proven track records and virtually zero side effects. Like England, that will soon be taken from Americans as well.

The healthcare system in America is designed to treat the illness, not prevent it. They poison us with their synthetic pills. Hospitals are a disgrace with ever increasing infection levels. Mortality rates are higher now in hospitals than they have ever been. Why would that be? Because its a for-profit organization, and they know you must have it, therefore, the quality is sacrificed. I do agree that there are many wonderful and hard working individuals working in hospitals. But its like every other institution nowadays....go along with the policies and you keep your job.

As a side note, I think what Reagan did to the air traffic controllers was a crime. I knew controllers back then and the conditions were horrid. Inadequate equipment, confined working conditions and long long hours. What right does a president have to walk in and destroy the livelihood of thousands of workers? To destroy their union? You get what you pay for is what I say. And if Americans want everything so goddamn cheap then don't bitch when this country turns into a banana republic with society crumbling like Haiti after some natural disaster. Where will you create the compassion and commitment when people are asked to do work for sub-standard pay? Its complicated, there's no doubt about it. I never claim to have the answers but I look at the solutions from the past and where we are at today, and I see nothing but FAIL!

2012 is around the corner. The politicians already are in-heat for their next campaign season. Its like hunting season for them. More play, and less work. Nevertheless, these fools in Congress will say and do anything to sound like they are the best looking pig in the pen. Let me tell you now....they are all criminals. Only because they are not behind bars in prison, doesn't mean they deserve my respect or should be allowed access to govern over us. They have sold us out a thousand times over to their foreign entities and the interests of mega-corporations. They refuse to tell the truth. They continue to kick the can down the road.

I don't give a damn what they plan on doing in Washington because I know they do not have our best interest in mind, and they never have. And I still want accountability for their past actions, fraud, deceit, treason and murder of American people, and those innocent lives around the world that must endure the testing of our innovative military weapons. The house must be put in order before I can side with this government institution ever again. And that should be echoed by all those who truly give a damn. It may seem to you that I am bitter, and that is because I am quite bitter. I have tasted the wrath of the American government. And they have fucked with my life mightily beyond levels of comprehension. I know of their destructive power and I know the deep and dark game that is played with the people of this country. We are treated as cattle, an debt slaves, as revenue generators and bond holders. We are not treated as human beings. That is what needs to change. And until it does, nothing changes in my mind.
Jan 18, 2011 at 7:48 PM | Unregistered Commenterdogismyth
Just to let you know Texas Dar...I did read the entire article and I thank you for bringing it forward. Sorry for my rant, it was not directed at you. Take care.
Jan 18, 2011 at 7:53 PM | Unregistered Commenterdogismyth
Its just another circle jerk Texas Dar. Boehner's a fucking douchebag just like most of Congress. BFD... I agree, he is nothing more than a Rino. But, that said, and what Pat T is saying, If he dose do it I would give him a 2nd chance.

You sound just like Dar. You sure have done yr home work too...................! My wife is Head of the Billing Dept. at our hospital. She fights with the Ins. Co. all day long. Can tell ya many sad storys how the people are being screwed over.

The Ins. we have now is fine. Just take all the goverment set up fraud out of it and our costs would go down and coverage would go up. Many more could aford it. But no, goverment set it up for a "Free -4-All" and 59% of the money gos to the Crooks.

At least they know were on to them and thAre Shit about the Fake Swine Flu scare this year. I will try and get you a few links that I have threw DB. Its info I got by snooping where I shouldent of been snooping. Remove "All Names" if you let this info out.

It makes the Obama Decption look like saterday morning cartoons. Glad to have someone on DB 's site that thinks along the same lines. Only a few know whats realy going on behing the black curtian...................... Tex !
Jan 19, 2011 at 3:01 PM | Unregistered CommenterTexas Dar

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