A pensioner would no longer be ‘guaranteed’ to receive a set amount. The amount he would receive per month would depend on the present value of the fund, the number of pensioners, the number of contributors, and the closeness to retirement age of the contributors.

Thus, as others have pointed out earlier, the ‘money’ people put into the ‘fund’ disappeared immediately into general revenues. The ‘fund’ is just a tax.

They were in denial about the automaker’s economic woes until the situation became so dire they could no longer ignore it, the same will happen here. Until borrowing becomes cost prohibitive and the Ponzi scheme called social security implodes there’s not a lot we can do.

We never have the political will in this country to act on anything that negatively affects voters until the problem is so big that it can no longer be ignored.

I for one cannot not wait until the fiscal day of reckoning arrives. Then all the sacred cows and special interest and welfare minded constituents will finally be told NO! in no uncertain terms.

public service salaries should be published with the liability of their annuities included

then we can watch them scream

From Germany, France, England to the USA, all social security is underfunded and will cost much more to the world governments than all wars fought to date.

Simply put, it’s a generational ponzi scheme that has come to it’s death and there is no way that this pyramid scheme can be revived. They will tax us more, they will increase the contributions to the scheme and they will inflate the currency like there is no tomorrow.

This is a complete disaster.

The idea behind the low rates is this: The problem is a lack of desire to borrow, not a lack of desire to lend.

http://www.dallasfed.org/news/speeches/fisher/2011/fs110112.cfm

… the FOMC collectively decided in November to temporarily undertake a program to purchase U.S. Treasuries that, when added to previous policy initiatives, roughly means we are purchasing the equivalent of all newly issued Treasury debt through June …

The entire FOMC knows the history and the ruinous fate that is meted out to countries whose central banks take to regularly monetizing government debt. … But here is the essential fact I want to emphasize today: The Fed could not monetize the debt if the debt were not being created by Congress in the first place.

Those lawmakers who advocate “Ending the Fed” might better turn their considerable talents toward ending the fiscal debacle that has for too long run amuck within their own house …

When they start pointing fingers at each other, it must be a sign that the unholy alliance of Fed and Congress is breaking up.

He is however a hundred times more honest than that mendacious clown The Ben Bernank who had the nerve to tell 60 Minutes “we’re not printing money”. Not that it matters whether these people are honest or not, the ending will still be exactly the same.

This system works perfectly except when unemployment rates climb and fewer individuals rely on pensions from employers these days as well. Increasing payroll deductions to cover the pension shortfall only creates for more economic pressure and downward trend in quality of living standards.

Well funded Well managed and Well maintained public pensions afford individuals the security of income they need to take the business risks necessary in capitalist marketplace.