Destroying

War and Conflict • Destroying our country, our military and our very existence

Published May 10, 2013 | By admin

Demanding the truth about Extortion 17
Destroying our country, our military and our very existence

By Paula Helton

Thursday, May 9, 2013

How many Americans have heard of Extortion 17? Extortion 17 was the call sign for the Chinook helicopter shot down in Afghanistan on the night of August 6, 2011. Killed in that crash were 25 special ops forces, including 15 members of Seal Team 6, 5 national Guard troops and 8 Afghans.

Today, the families of the military killed in that crash held a press conference to lay out the coverup by Obama and the military that has gone on since that crash. The video of the press conference can be found here

I watched the live stream of the press conference, admittedly crying throughout. Then the point came that the tears turned into white hot anger. Every American citizen must watch this video. The major Obama regime coverups did not occur only in Fast and Furious, the New Black Panther voter intimidation case and Benghazi. The man sitting in OUR White house is methodically destroying our country, our military and our very existence.

Islamist Imam praying over our soldiers at Bagram Air Base
At the beginning of the video is footage of the Islamist Imam praying over our soldiers at Bagram Air Base. Of course he prays in Arabic, but in the English translation he sent our heroes into eternal hell as infidels while praising the Islamist relationship with our country. You read that right, and our Government and our military let that happen.

This operation reads like a set up from the beginning. All the Special Ops forces were packed into one National Guard Chinook. There was no escort for the Seals that night, no pathfinder, and conveniently the “eye in the sky” (drone) didn’t work. The seven members of the Afghan military that were to accompany our service members were switched out just prior to take off. The names of the seven Afghans appearing on the flight manifesto were not the seven that boarded that helicopter on the night of August 6, 2011.

Apparently the call to switch out these seven Afghans was made by an “out of theater” commander. To this day, no one has come forward identifying that commander. America needs to demand an answer to that question. Remember, prior to this crash, Barack Obama and Joe Biden had identified Seal Team 6 as the forces that killed Osama Bin Laden. One has to ask, “were they a trade off for Bin Laden?”

In October 2011, US Central Command (CENTCOM) announced that an investigation carried out following the shoot down concluded “that all operational decisions, linked to the incident, were deemed tactically sound” and the helicopter crashed after a RPG round impacted the aft rotor assembly.

While the Obama administration was busy spinning the coverup, other reports were surfacing that the Taliban had laid an elaborate trap for U.S. special operations forces, luring them in with false information. A senior Afghan government official, speaking anonymously, said that Taliban commander Qari Tahir had fed U.S. forces false information about a meeting of insurgent leaders and fighters waited for the helicopter from both sides of a steep valley: “The Taliban knew which route the helicopter would take. That’s the only route, so they took position on either side of the valley on mountains and as the helicopter approached, they attacked it with rockets and other modern weapons. It was brought down by multiple shots.”

It was heart wrenching listening to Karen Vaughn, a mother who lost her only son. He was a proud member of Seal Team 6. She is angry that current rules of engagement put her son’s life, and that of every son and daughter serving in the military today in grave danger. She demanded to know if reaching the hearts and minds of Muslim extremists is more important than her son’s life. She also expressed anger at the form letters the President keeps sending out when our children are killed.

Her husband, Billy Vaughn, recounted the visit they received from Admiral William McRaven, who was apparently sent to put a lid on their inquiries. The Admiral was the head of the Joint Strategic Objectives Plan (JSOP), as well as runner up for Time’s Man of the Year in 2011.

As the Vaughns are residents of Florida, they also approached Sen. Marco Rubio to enlist his assistance in their quest for answers. Sen. Rubio told him he would talk to his new BFF, John McCain, and see what they could do. Mr. Vaughn’s response was “No, thank you, I’ll do it myself, I don’t trust John McCain or the GOP establishment to pursue this.

Doug Hamburger, another grieving father has questioned why no interviews were done with Afghan Command or military in compiling the 1,250 page official report.

Charles and MaryAnn Strange lost their 25-year-old son, who had been a Navy Seal for 6 years. Mr. Strange made inquiries as to the whereabouts of the black box. He was told it washed away in a flood. His response was, “in Afghanistan?” After repeated questions, Mr. Strange was told everything was in “the book”. After requesting a copy of said book, he was presented with a book with no ink in it. When he questioned this and requested a true copy, he was told the original had been burned. They were then given a disk. Unfortunately for Mr. and Mrs. Strange, the disk was full of white outs.

Also present at the press conference was retired Admiral James Lyons. Admiral Lyons has a distinguished 36-year Naval career, mot recently as Commander in Chief of the Pacific Fleet. Admiral Lyons has also called for an answer to the question, “who made the decision to put them all on one helicopter”? He stated emphatically that this mission was compromised as the Taliban knew we were coming. The Admiral stated emphatically this was a dereliction of duty just like Benghazi; not to come to the aid of our people is unconscionable.

Joining the press conference were Army Major General Paul Vallely, General Tom MacInerney, Lt. Colonel Allen West, former Seals, Benjamin Smith and Larry Bailey and Act for America’s Brigitte Gabriel. From all of them came an admonition and dire warning that the American people must wake up and realize who the true enemy is: Islamist Jihadists. They are all unanimous in the belief we are being destroyed from within. Former Seal Benjamin Smith went so far as to say he believes Barack Obama is guilty of treason. I share that belief.

A recurring theme during this press conference was that we, the American people, must stand together and demand a Congressional hearing into Extortion 17. To date, only three of our House Representatives, Michelle Bachman, Louis Gohmert and Trent Franks have been actively working to assist the family members. Unfortunately, the same Congress that held a hearing to address drug usage in the NFL, has no interest in holding hearings to get to the bottom of what actually happened on the night of August 6, 2011 and the ensuing cover up.

It’s up to “We the People” to demand a hearing and help the families of our fallen heroes get the answers they rightfully deserve. Please not only watch this video, but make sure it goes viral. Then pick up the phone and call your Representative in Congress and demand a Congressional hearing. Keep calling until that hearing is scheduled. We’ve kept up the pressure on Benghazi. These families deserve no less from us.

http://canadafreepress.com/index.php/article/55097

Statistics: Posted by yoda — Fri May 10, 2013 12:28 am

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Posted in Of interest | Tagged Conflict, COUNTRY, Destroying, Existence, military, Very | Leave a comment

American • How the Banking System Is Destroying America

Published March 29, 2013 | By admin

How the Banking System Is Destroying America
by Washingtons Blog – March 29th, 2013, 1:00am

Stunning Facts About How the Banking System Really Works … And How It Is Destroying America

Reclaiming the Founding Fathers’ Vision of Prosperity

To understand the core problem in America today, we have to look back to the very founding of our country.

The Founding Fathers fought for liberty and justice. But they also fought for a sound economy and freedom from the tyranny of big banks:

“[It was] the poverty caused by the bad influence of the English bankers on the Parliament which has caused in the colonies hatred of the English and . . . the Revolutionary War.”
- Benjamin Franklin

“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.”
- John Adams

“All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.”
- John Adams

“If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied”.
— Thomas Jefferson

“I believe that banking institutions are more dangerous to our liberties than standing armies…The issuing power should be taken from the banks and restored to the Government, to whom it properly belongs.”
- Thomas Jefferson

“The Founding Fathers of this great land had no difficulty whatsoever understanding the agenda of bankers, and they frequently referred to them and their kind as, quote, ‘friends of paper money. They hated the Bank of England, in particular, and felt that even were we successful in winning our independence from England and King George, we could never truly be a nation of freemen, unless we had an honest money system. ”
-Peter Kershaw, author of the 1994 booklet “Economic Solutions”

Indeed, everyone knows that the American colonists revolted largely because of taxation without representation and related forms of oppression by the British. See this and this. But – according to Benjamin Franklin and others in the thick of the action – a little-known factor was actually the main reason for the revolution.

To give some background on the issue, when Benjamin Franklin went to London in 1764, this is what he observed:

When he arrived, he was surprised to find rampant unemployment and poverty among the British working classes… Franklin was then asked how the American colonies managed to collect enough money to support their poor houses. He reportedly replied:

“We have no poor houses in the Colonies; and if we had some, there would be nobody to put in them, since there is, in the Colonies, not a single unemployed person, neither beggars nor tramps.”

In 1764, the Bank of England used its influence on Parliament to get a Currency Act passed that made it illegal for any of the colonies to print their own money. The colonists were forced to pay all future taxes to Britain in silver or gold. Anyone lacking in those precious metals had to borrow them at interest from the banks.

Only a year later, Franklin said, the streets of the colonies were filled with unemployed beggars, just as they were in England. The money supply had suddenly been reduced by half, leaving insufficient funds to pay for the goods and services these workers could have provided. He maintained that it was “the poverty caused by the bad influence of the English bankers on the Parliament which has caused in the colonies hatred of the English and . . . the Revolutionary War.” This, he said, was the real reason for the Revolution: “the colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction.”

(for more on the Currency Act, see this.)

Alexander Hamilton echoed similar sentiments:

Alexander Hamilton, the nation’s first treasury secretary, said that paper money had composed three-fourths of the total money supply before the American Revolution. When the colonists could not issue their own currency, the money supply had suddenly shrunk, leaving widespread unemployment, hunger and poverty in its wake. Unlike the Great Depression of the 1930s, people in the 1770s were keenly aware of who was responsible for their distress.

As historian Alexander Del Mar wrote in 1895:

[T]he creation and circulation of bills of credit by revolutionary assemblies…coming as they did upon the heels of the strenuous efforts made by the Crown to suppress paper money in America [were] acts of defiance so contemptuous and insulting to the Crown that forgiveness was thereafter impossible . . . [T]here was but one course for the crown to pursue and that was to suppress and punish these acts of rebellion…Thus the Bills of Credit of this era, which ignorance and prejudice have attempted to belittle into the mere instruments of a reckless financial policy were really the standards of the Revolution. they were more than this: they were the Revolution itself!

And British historian John Twells said the same thing:

The British Parliament took away from America its representative money, forbade any further issue of bills of credit, these bills ceasing to be legal tender, and ordered that all taxes should be paid in coins … Ruin took place in these once flourishing Colonies . . . discontent became desperation, and reached a point . . . when human nature rises up and asserts itself.

In fact, the Americans ignored the British ban on American currency, and:

“Succeeded in financing a war against a major power, with virtually no ‘hard’ currency of their own, without taxing the people.”

Indeed, the first act of the New Continental Congress was to issue its own paper scrip, popularly called the Continental.

Franklin and Thomas Paine later praised the local currency as a “corner stone” of the Revolution. And Franklin consistently wrote that the American ability to create its own credit led to prosperity, as it allowed the creation of ample credit, with low interest rates to borrowers, and no interest to pay to private or foreign bankers .

Not Ancient History … One of the Most Vital Issues of Today

Is this just ancient history?

No.

The ability for America and the 50 states to create its own credit has largely been lost to private bankers. The lion’s share of new credit creation is done by private banks, so – instead of being able to itself create money without owing interest – the government owes unfathomable trillions in interest to private banks.

Read this background to understand how money is really created in our crazy current banking system. And read this and this to learn why we are paying trillions of dollars to the big banks in unnecessary interest costs.

America may have won the Revolutionary War, but it has since lost one of the main things it fought for: the freedom to create its own credit instead of having to beg for credit from private banks at a usurious cost.

No More Federal than Federal Express

While many Americans assume that the Federal Reserve is a federal agency, the Fed itself admits that the 12 Federal Reserve banks are private. See this, this, this and this.

Indeed, the money-center banks in New York control the New York Fed, the most powerful Fed bank. Until recently, Jamie Dimon – the head of JP Morgan Chase – was a Director of the New York Fed. Everyone knows that the Fed is riddled with conflicts of interest and corruption.

The long-time Chairman of the House Banking and Currency Committee (Charles McFadden) said on June 10, 1932:

Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies ….

And congressman Dennis Kucinich said:

The Federal Reserve is no more federal than Federal Express!

The Fed Is Owned By – And Is Enabling – The Worst Behavior of the Big Banks

Most people now realize that the big banks have become little more than criminal enterprises.

No wonder a stunning list of economists, financial experts and bankers are calling for them to be broken up.

But the Federal Reserve is enabling the banks. Indeed, the giant banks and the Fed are part of a malignant, symbiotic relationship.

Specifically:

The corrupt, giant banks would never have gotten so big and powerful on their own. In a free market, the leaner banks with sounder business models would be growing, while the giants who made reckless speculative gambles would have gone bust. See this, this and this.

It is the Federal Reserve, Treasury and Congress who have repeatedly bailed out the big banks, ensured they make money at taxpayer expense, exempted them from standard accounting practices and the criminal and fraud laws which govern the little guy, encouraged insane amounts of leverage, and enabled the too big to fail banks – through “moral hazard” – to become even more reckless.

Indeed, the government made them big in the first place. As I noted in 2009:

As MIT economics professor and former IMF chief economist Simon Johnson points out today, the official White House position is that:

(1) The government created the mega-giants, and they are not the product of free market competition

***

(3) Giant banks are good for the economy

***

The [corrupt, captured government "regulators"] and the giant banks are part of a single malignant, symbiotic relationship.

Indeed, the Fed and their big bank owners form a crony capitalist cartel that is destroying the economy for most Americans. The Fed has been bailing out the giant banks while shafting the little guy.

Fed boss Bernanke falsely stated that the big banks receiving bailout money were healthy, when they were not. They were insolvent. By choosing the big banks over the little guy, the Fed is dooming both.

No wonder many top economists say that we should end – or strip most of the powers from – the Federal Reserve.

Even long-time Fed Chairman Alan Greenspan says that we should end the Fed.

A Better Alternative

Conservative and liberal economists both point out that the big banks are already state-sponsored institutions … so the government should create a little competition through public banking.

State-owned public banks – like North Dakota has – would take the power away from the big banks, and give it back to the people … as the Founding Fathers intended.

Even a 12-year old sees the wisdom of public banking.

http://www.ritholtz.com/blog/2013/03/ho … g-america/

Statistics: Posted by yoda — Fri Mar 29, 2013 2:26 am

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War and Conflict • Destroying the U.S. Military

Published January 27, 2013 | By admin

Operations, Maintenance and Training will be gutted
Destroying the U.S. Military
– Alan Caruba

Saturday, January 26, 2013

——————————————————————————–

The author of “1984”, George Orwell, once said, “The quickest way to end a war is to lose it.”

In the preamble to the U.S. Constitution, among the priorities listed is to “provide for the common defense” of the nation. After having fought a six-year war during the Revolution and replaced the failed Articles of Confederation, the framers of the Constitution, many of whom had fought beside George Washington, well understood the need for a standing army and navy to protect the new nation.

In the nation’s earliest years, Americans repeatedly elected Presidents with military credentials and experience. In addition to Washington they included Monroe, Jackson, Harrison, Tyler, Grant, Teddy Roosevelt, Truman, Eisenhower, Kennedy, Johnson, Nixon, Carter, Reagan, Bush41 and 43. FDR had served as Secretary of the Navy.

In recent times, two Presidents, Clinton—a draft dodger—and Obama have had no military experience to draw upon. Over the objections of their generals, both introduced policies to include and protect homosexuals in the U.S. military services. Now the doors have been opened to permit women to fight beside men. The military is not a place where one conducts social experiments. It’s a place where men go in harm’s way to protect the nation.

Today, thanks to the failure of the Congress to address America’s spending and growing debt problems, the U.S. military faces a draconian “sequestration”—massive cuts to the defense budget—that would so seriously decrease the nation’s ability to defend itself and project power globally, that it reminds one of the failure to maintain a strong military that required a massive effort to get up to speed after the Japanese Empire’s attack on Pearl Harbor in 194. The WWII declaration of war included the Nazi Third Reich that threatened the United Kingdom, all of Europe, and Russia.

A recent Rasmussen Reports poll found that 40% of likely voters “believe the United States spends too much on defense and national security” while only 22% disagree and 32% believe the amount spent is about right. This is a definition of stupidity.

A nation requires a standing army, navy, coast guard, and air force, along with a trustworthy banking system. After the 2008 financial crisis—the result of government policies regarding housing—we had to bail out the banking system to the tune of billions. Today we face the prospect of a military that is flying an aging fleet of airplanes, has a navy that has as few ships in service as we had at the end of World War I, and a volunteer military that requires that support of thousands of civilian personnel.

Out-going Secretary of Defense, Leon Panetta, has been loudly warning that the result of any spending cuts would be “catastrophic.”

One can argue that we have spent a fortune in treasure and blood in the Middle East since 2001, but only the most foolish would argue that America and the West is not facing the greatest threat in its history since Moslem armies were defeated at the doors of Europe in 732 AD and 1529 AD.

In a recent press conference, Panetta said that the practical results of the proposed cuts in defense would be less training for units not imminently deploying to Afghanistan; less shipboard training for all but the highest priority missions; less pilot training and fewer flight hours; curtailed ship maintenance and disruption to research and weapons modernization programs. He described it as the hollowing out of the defense force of the nation.

Noting that members of our military are fighting and sometimes dying to defend our nation, Panetta said, “Those of us in Washington need to have the same courage as they do to do the right thing and try to protect the security of this country. We must ensure we have the resources we need to defend the nation and meet our commitments to our troops, to our civilian employees, and to their families, after more than a decade of war.”

Courage and common sense are two elements that are missing in Washington these days.

Retired General Paul E. Vallely, U.S. Army, states the case bluntly. “President Obama is working very hard to destroy U.S. military superiority, consciously and unconsciously to the advantage (of) our global enemies in an attempt to seize control over national security and (in) another overt attempt to bypass Congress, the Obama administration may have already made this play as of this writing.”

Joined at the press conference by Army General Martin E. Dempsey, chairman of the Joint Chiefs of Staff, Gen. Dempsey described sequestration as “a self-inflicted wound on national security”, bluntly saying it was “an irresponsible way to manage our nation’s defense. It cuts blindly and it cuts bluntly. It compounds risk and it compromises readiness.”

Americans are largely unaware that our air fleet is the oldest in Air Force history, worn down by two-plus decades of combat dating back to the 1991 Gulf War. The average age of the fleet exceeds a quarter of a century. The U.S. Navy is a mere shadow of itself. Under normal operations one third of the fleet is in repair, one third is in port for the rest and relaxation of sailors, leaving approximately 90 ships to patrol the seven seas to protect American interests. There are about 800,000 civilians that provide support to our services and nearly 1.4 million in the active-duty military.

We have until March to know whether Congress will take action to repeal sequestration and replace it with the steps everyone with a lick of sense knows must be taken; reforming the nation’s tax code, reforming Social Security, Medicare and Medicaid to avoid their impending failure, reductions in the spending and borrowing that has imposed more than $16 trillion in debt, and reform of the spiraling avalanche of regulations that are choking the nation’s economic recovery.

How serious is it? Gen. Dempsey warned that operations, maintenance and training will be gutted. “We’ll ground aircraft, return ships to port, and sharply curtail training across the force. (We) may be forced to furlough civilians at the expense of maintenance and even health care. We will be unable to reset the force following a decade of war.”

“Within a year, we’ll be unprepared,” said Gen. Dempsey.

Alan has a daily blog called Warning Signs.

http://www.canadafreepress.com/index.php/article/52685

Statistics: Posted by yoda — Sun Jan 27, 2013 1:49 am

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American • The Federal Reserve Is Systematically Destroying Social Sec

Published September 20, 2012 | By admin

The Federal Reserve Is Systematically Destroying Social Security And The Retirement Plans Of Millions Of Americans

Last week the mainstream media hailed QE3 as the "quick fix" that the U.S. economy desperately needs, but the truth is that the policies that the Federal Reserve is pursuing are going to be absolutely devastating for our senior citizens. By keeping interest rates at exceptionally low levels, the Federal Reserve is absolutely crushing savers and is systematically destroying Social Security. Meanwhile, the inflation that QE3 will cause is going to be absolutely crippling for the millions upon millions of retired Americans that are on a fixed income. Sadly, most elderly Americans have no idea what the Federal Reserve is doing to their financial futures. Most Americans that are approaching retirement age have not adequately saved for retirement, and the Social Security system that they are depending on is going to completely and totally collapse in the coming years. Right now, approximately 56 million Americans are collecting Social Security benefits. By 2035, that number is projected to grow to a whopping 91 million. By law, the Social Security trust fund must be invested in U.S. government securities. But thanks to the low interest rate policies of the Federal Reserve, the average interest rate on those securities just keeps dropping and dropping. The trustees of the Social Security system had projected that the Social Security trust fund would be completely gone by 2033, but because of the Fed policy of keeping interest rates exceptionally low for the foreseeable future it is now being projected by some analysts that Social Security will be bankrupt by 2023. Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years. Yes, you read that correctly. The collapse of Social Security is inevitable, and the foolish policies of the Federal Reserve are going to make that collapse happen much more rapidly.

The only way that the Social Security system is going to be able to stay solvent is for the Social Security trust fund to earn a healthy level of interest.

By law, all money deposited in the Social Security trust fund must be invested in U.S. government securities. The following is from the official website of the Social Security Administration….

By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government. All securities held by the trust funds are "special issues" of the United States Treasury. Such securities are available only to the trust funds.

In the past, the trust funds have held marketable Treasury securities, which are available to the general public. Unlike marketable securities, special issues can be redeemed at any time at face value. Marketable securities are subject to the forces of the open market and may suffer a loss, or enjoy a gain, if sold before maturity. Investment in special issues gives the trust funds the same flexibility as holding cash.

So in order for the Social Security Ponzi scheme to work, those investments in government securities need to produce healthy returns.

Unfortunately, the ultra-low interest rate policy of the Federal Reserve is making this impossible.

The average rate of interest earned by the Social Security trust fund has declined from 6.1 percent in January 2003 to 3.9 percent today, and it is going to continue to go even lower as long as the Fed continues to keep interest rates super low.

A recent article by Bruce Krasting detailed how this works. Just check out the following example….

$135 billion of old bonds matured this year. This money was rolled over into new bonds with a yield of only 1.375%. The average yield on the maturing securities was 5.64%. The drop in yield on the new securities lowers SSA’s income by $5.7B annually. Over the fifteen year term of the investments, that comes to a lumpy $86 billion.

So what happens when the Social Security trust fund runs dry?

As Bruce Krasting also noted, all Social Security payments would immediately be cut by 25 percent…..

Anyone who is 55 or older should be worried about this. Based on current law, all SS benefit payments must be cut by (approximately) 25% when the TF is exhausted. This will affect 72 million people. The economic consequences will be severe.

In other words, it would be a complete and total nightmare.

Sadly, the truth is that the Social Security trust fund might not even make it into the next decade. Most Social Security trust fund projections assume that there will be no recessions and that there will be a very healthy rate of growth for the U.S. economy over the next decade.

So what happens if we have another major recession or worse?

And most Americans know that something is up with Social Security. According to a Gallup survey, 67 percent of all Americans believe that there will be a Social Security crisis within 10 years.

Part of the problem is that there are way too many people retiring and not nearly enough workers to support them.

Back in 1950, each retiree’s Social Security benefit was paid for by 16 U.S. workers. But now things are much different. According to new data from the U.S. Bureau of Labor Statistics, there are now only 1.75 full-time private sector workers for each person that is receiving Social Security benefits in the United States.

And remember, the number of Americans drawing on Social Security will increase by another 35 million by the year 2035.

Another factor that is rapidly becoming a major problem is the growth of the Social Security disability program.

Since 2008, 3.6 million more Americans have been added to the rolls of the Social Security disability insurance program.

Today, more than 8.7 million Americans are collecting Social Security disability payments.

So how does this compare to the past?

Back in August 1967, there were approximately 65 workers for each American that was collecting Social Security disability payments.

Today, there are only 16.2 workers for each American that is collecting Social Security disability payments.

The Social Security Ponzi scheme is rapidly approaching a crisis point.

Sadly, the Federal Reserve has made it incredibly difficult to save for your own retirement.

Millions upon millions of Baby Boomers that diligently saved money for retirement are finding that their savings accounts are paying out next to nothing thanks to the ultra-low interest rate policies of the Federal Reserve.

The following is one example of how the low interest rate policies of the Fed have completely devastated the retirement plans of many elderly Americans….

You can understand the impact of the invisible tax on the elderly by watching the decline of interest income from $50,000 invested in a five-year Treasury obligation. As recently as 2000, this would have yielded about 6.15 percent and an interest income of $3,075 a year. Now the same obligation is yielding 0.7 percent and an interest income of $350 a year. This is the lowest yield on this maturity of Treasury debt since the Federal Reserve started keeping an index of the yields in 1953.

But it’s more than a low interest rate. It’s an income decline of nearly 89 percent in just 12 years.

And after you account for inflation, those that put money into savings accounts today are actually losing money.

Of course most Americans have not saved up much money for retirement anyway. According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.

Overall, a study conducted by Boston College’s Center for Retirement Research discovered that American workers are $6.6 trillion short of what they need to retire comfortably.

So needless to say, we have a major problem.

Baby Boomers are just starting to retire and the Social Security system is still solvent at the moment, and yet the number of elderly Americans that are experiencing financial problems is already soaring.

For example, between 1991 and 2007 the number of Americans between the ages of 65 and 74 that filed for bankruptcy rose by a staggering 178 percent.

Also, at this point one out of every six elderly Americans is already living below the federal poverty line.

So how bad are things going to be when Social Security collapses?

That is frightening to think about.

In the short-term, millions upon millions of retired Americans that are living on fixed incomes are going to be absolutely crushed by the inflation that QE3 is going to cause.

Just like we saw with QE1 and QE2, a lot of the money from QE3 is going to end up in agricultural commodities and oil. That means that retirees (and all the rest of us) are going to end up paying more for food at the supermarket and gasoline at the pump.

But those on fixed incomes are not going to see a corresponding increase in their incomes. That means that their standards of living will go down.

Things are tough for retirees right now, but they are going to get a lot tougher.

Right now, there are somewhere around 40 million senior citizens. By 2050 that number is projected to increase to 89 million.

So how will our society cope with more than twice as many senior citizens?

Sadly, we will likely never get to find out.

The truth is that our system is almost certainly going to totally collapse long before then.

We are rapidly approaching a financial crisis unlike anything we have ever seen before in U.S. history, and the foolish policies of the Federal Reserve just keep making things even worse.

http://theeconomiccollapseblog.com/arch … -americans

Statistics: Posted by yoda — Wed Sep 19, 2012 12:01 am

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The Federal Reserve Is Systematically Destroying Social Security And The Retirement Plans Of Millions Of Americans

Published September 18, 2012 | By admin

Last week the mainstream media hailed QE3 as the “quick fix” that the U.S. economy desperately needs, but the truth is that the policies that the Federal Reserve is pursuing are going to be absolutely devastating for our senior citizens. By keeping interest rates at exceptionally low levels, the Federal Reserve is absolutely crushing savers and is systematically destroying Social Security. Meanwhile, the inflation that QE3 will cause is going to be absolutely crippling for the millions upon millions of retired Americans that are on a fixed income. Sadly, most elderly Americans have no idea what the Federal Reserve is doing to their financial futures. Most Americans that are approaching retirement age have not adequately saved for retirement, and the Social Security system that they are depending on is going to completely and totally collapse in the coming years. Right now, approximately 56 million Americans are collecting Social Security benefits. By 2035, that number is projected to grow to a whopping 91 million. By law, the Social Security trust fund must be invested in U.S. government securities. But thanks to the low interest rate policies of the Federal Reserve, the average interest rate on those securities just keeps dropping and dropping. The trustees of the Social Security system had projected that the Social Security trust fund would be completely gone by 2033, but because of the Fed policy of keeping interest rates exceptionally low for the foreseeable future it is now being projected by some analysts that Social Security will be bankrupt by 2023. Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years. Yes, you read that correctly. The collapse of Social Security is inevitable, and the foolish policies of the Federal Reserve are going to make that collapse happen much more rapidly.

The only way that the Social Security system is going to be able to stay solvent is for the Social Security trust fund to earn a healthy level of interest.

By law, all money deposited in the Social Security trust fund must be invested in U.S. government securities. The following is from the official website of the Social Security Administration….

By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government. All securities held by the trust funds are “special issues” of the United States Treasury. Such securities are available only to the trust funds.

In the past, the trust funds have held marketable Treasury securities, which are available to the general public. Unlike marketable securities, special issues can be redeemed at any time at face value. Marketable securities are subject to the forces of the open market and may suffer a loss, or enjoy a gain, if sold before maturity. Investment in special issues gives the trust funds the same flexibility as holding cash.