US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

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Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

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Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

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Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

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Content By: The Coming Depression Editorial Staff (dates cited below)
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social security ponzi scheme

Over the past 25 years, five presidents, and the members of Congress, have participated in the great Social Security scam. All Social Security contributions made by working Americans, except the amount which was needed to pay current retirement benefits, has been funneled into the general fund and used for non-Social Security purposes. Some like to say that the government just “borrowed” the money during the time period when it was not needed to pay benefits.

Pensions require discipline in saving for retirement if you want to maintain your standard of living. Any government pension program should only provide enough to maintain a basic living standard. Pensions are not and should not be the backstop for those who choose to blow all their earnings during their working lives and not having enough in retirement to maintain that standard of living.

As powerful as the U.S is it too is living on borrowed time. While there are many wealthy Americans and I’m not referring to only those in the entertainment business or who work on Wall Street, their national debt is more than twenty times that of Canada’s. Indeed, this is all a very haunting reminder of the Argentinian financial collapse that led to, among other things, the looting of the public pension purse to fund marauder bankers looking for compensation.

The elephant in the room for the United States is their national debt and for the present everybody is pretending as though everything is flush and their trillion dollar deficit just bumps in the road.

Fact: When these welfare schemes like medicare and pensions where introcuded, people lived to about 67 and old people made up 1/7 of the population.

Fact: People now live to almost 80, and as soon as the baby boomers retire, old people will make up 1/3 of the population.

According to Dissident Voice, In December, the Obama deficit-reduction commission will make recommendations for budget cuts that will then be voted on, with an up or down vote, by the lame-duck Congress. Already, there is much speculation that Social Security will be one of the big targets. The rationale for cutting Social Security seems to be that, during such difficult economic times, everything should be a candidate for the chopping block, and that the public should support such cuts out of a sense of patriotism.

Think it can’t happen to the US or anywhere else?

Argentina has already vowed to push through similar measures in the name of rescuing the wider financial system. Last month, the government of the South American country signed a bill to mandate the National Social Security Administration takeover of $30 billion worth of private pensions.

The move sent stock markets plummeting with critics accusing the government of stealing the pensions to get their hands on extra money at a time of economic crisis, as citizens protested across the country. Source: infowars

The flaw in this argument is that Social Security has not contributed a dime to the budget deficits or the soaring national debt. Social Security is funded exclusively by payroll taxes (also known as FICA taxes), paid into the fund by working Americans. In 1983, the payroll tax was increased substantially in response to the recommendations, the previous year, of the Greenspan Commission on Social Security Reform.

Prior to 1983, Social Security had operated on a “pay-as-you-go” basis with each generation responsible for paying for the benefits of the generation that preceded them. The 1983 legislation changed the nature of Social Security funding. In addition to paying for the benefits of the preceding generation, as was customary, the baby boomers were also required to pay additional taxes to partially pre-fund their own retirement. The net result is that the baby boomers have paid more into Social Security than any other generation. Yet they are often made scapegoats and blamed for the Social Security funding problem. I am not a baby boomer, but I am very sympathetic to them. They are getting a bum rap.


Canadian situation no better

Liberal MP Ruby Dhalla’s insane plan to allow immigrants the ability to gain a full pension on the backs of Canadian taxpayers after just three years of residency is nothing short of spitting in the faces of those Canadians, many of whom have worked for decades and contributed to the government pension plans as well as their own private plans, is unlikely to make it through the House. The Conservatives won’t support the plan and neither will the Bloc Quebecois. It is unlikely that many of her fellow Liberal MPs will support such lunacy.

The move from defined benefit to defined contribution plans is one of the reasons we are seeing inadequate pensions. Central Banks have over the last 25 years deliberatly maintained a low interest rate policy. Pension Plans have had to get involved in riskier ventures to fund their plans. We saw how this latest financial crisis saw their assets decline precipitously. We are just begining to see a return to year 2000 levels. You can no longer rely on the company you worked for to make up shortfalls. Company insolvency can be hazardous for the best of plans.

Related posts:

  1. Britain Cannot Fund Social Security; Mull Retirement Increase Says IMFBy Alex Brummer of The Daily Mail Gordon Brown was warned last night to raise the retirement age above 65 and introduce NHS charges to tackle the soaring state deficit....
  2. Living standards compared & IMF predicts ‘social explosion’“In the 50′s and 60′s anybody could walk into a job; there weren’t the armies of unemployed men living in their parents basements; they could easily walk into any number...
  3. 401k withdrawals spike 10 year high; will Obama steal your pensions?‘”The current economy has forced some workers to borrow from their 401(k) accounts in order to pay for critical living expenses, ultimately jeopardizing their future retirement,” said James MacDonald, president...
  4. Bolivia nationalizes pensions, lowers retirement ages as lure“The government is preparing a banquet for 300,000 people, but inviting 3 million to partake,” said pensions expert Alberto Bonadona. “It will collapse.” Jacob Funk Kierkegaard, an economist at the...
  5. FDIC wants your retirement cash to save banks: Bloomberg“The FDIC is constantly looking at structures where we can get the greatest opportunity to tap into capital that we have not had the success reaching through previous disposition methods,”...
  6. The bamboozled generation: why today's youth are hopeless“Today the average couple is struggling with mortgages that are consuming 50% or more of their income.” — Pushing Hamburger Is it any wonder they do not vote as much...

This entry was posted on Sunday, July 18th, 2010 at 1:38 am and is filed under Scams. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1 Comment

  1. July 20, 2010 @ 1:07 pm


    Keep posting stuff like this i really like it

    Posted by veterinary technician

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