The Myth of the US Social Security Shortfall

Executive Summary

  • Private banking interests continually tell us that social security is at risk. This is impossible if the government creates its own money. And even without this, the “shortfall” is a myth.

Introduction

Under a debt-free currency and a government-controlled central bank, the US can set the level of social security that it sees fit. Thus, the only reason one can forecast a shortfall in SS (which is often stated to be after 2035) is that first, the current system is based upon debt-based money. This is explained in the following quotation.

“Well, what happened at the social security crisis? Were was resolved by simply cashing out its federal bond holdings with newly issued US notes. With dangerous inflation results. The answer is that it would not because the Social Security fund would have no more money than it had before. The government would just be returning to the fund with the taxpayer started had all along.” – Debt Free Money