The Social Security Sham, more sinister than you think.

Since President Bush has a difficult time with the truth, I immediately became concerned with his “reforming” social security rhetoric. As there is always an ulterior motive with this President, I began to investigate and have concluded the president is not really concerned with Social Security, but he is willing to use it as a pretext to accomplish something more sinister.

I t does not take a financial whiz to understand that all the facts indicate a huge financial bubble is about to burst. A review of the current situation shows key economic realities as follows:

· The $7 trillion national government debt (accumulated debt over the years by the US government) is the largest debt in history of mankind, in part because of the endless war policy the President has employed by misleading the American public.

· The budget deficit (the amount by which government spending exceeds revenues) this year alone will be about $500 billion. The cost of constant wars is almost beyond human comprehension (see: http://costofwar.com/ ) and the national debt is appallingly dangerous.

· In addition to the government’s debt, the public debt is at an all-time high, with Americans mortgaged to the hilt and credit card balances at an all time high.

· The trade deficit for 2004 was $617 billion and has been breaking records every month this year. We have an enormous trade deficit because we no longer are a manufacturing nation, and therefore have very little except Weapons of Mass Destruction to sell to the world. On the other hand, we are giant consumers of goods and our needs can only be met by purchasing foreign goods. Hence the huge trade deficit, and as more and more money leaves the country, we become poorer as a nation.

· Meanwhile to further complicate things, the value of the dollar is shrinking rapidly in comparison to other currencies, while the federal government prints more paper money to pay for it's wars and its debt. As money is printed and the spending continues, the value of the currency depreciates. This brings us to a most frightening situation. Historically, the accumulated debt has been bought by foreign investors who purchase US bonds and notes. Recently however, foreign investors have watched the value of their investment shrink as the dollar shrinks, while the federal government on the other hand, can only pay it's bills by floating more loans to meet expenses. Presently many foreign investors are no longer willing to buy government bonds as the US dollar continues to lose buying power, and investors have begun to shy away from financing the American debt by purchasing bonds and notes.


· Additionally oil producing nations have been using the dollar as the means to buy and sell oil, but as their accumulated dollars continually lose value, they are beginning to question why they should use the dollar in the selling of their oil. They collect and accumulate dollars for oil sales, but then must use shrinking dollars to make purchases of products on the world market. Each time they exchange dollars for others currencies they lose money, as the dollar now is worth much less than major currencies. It is no wonder they are reluctant to trade oil in dollars.

So what does Social Security have to do with the diminishing dollar one might ask? The President has called for private accounts as a supplement to Social Security, which accomplishes two things. It lessens government expense by not requiring the government to fully subsidize Social Security, and the creation of private investment accounts will force the public to invest in stocks, and bonds. The President will argue that a percentage of the citizen’s portfolio must go to US bonds, as a hedge against risky investments. The President is hoping that his “reform” will force the public into supporting the US debt by investing in government bonds. As foreign investors retreat from using and buying dollars, someone must step forward to support the debt.

The President’s real motive behind Social Security Reform is to help prop up the enormous national debt by forcing taxpayers to purchase government bonds, as part of their private portfolio. The American public will be collecting dollars that are depreciating. So there you have it, a sinister plot of “forcing” the people into buying increasingly worthless dollars because no one else in the world will. All the while you probably thought the President really cared about Social Security.