Submitted by Deepcaster:

The Prospective Rigging of the CPI Calculation for Social Security recipients would , yet again, make the “Official” CPI even further removed from The Inflation Reality.   The Reality is that the current U.S. Inflation Rate, 9.4%, is already Threshold Hyperinflationary.
The Key Point for Investors is understanding the Motivation behind Government and Mega-Banks pushing for Mandatory Government Securities Investment, and changing the way Inflation is calculated.

The Powers-that-Be in the Global Banking and Finance community know that the ever-increasing Money Printing – QE to Infinity – is already leading to increasing Price Inflation, which they wish to hide, and thus eventually to Massive Sales of Paper Treasury Securities, for which they wish to have Buyers, via 401(K) Funds.


2013 Silver Eagles As Low as $2.59 Over Spot at SDBullion!


As the miscreants in Washington negotiate solutions to the “fiscal-cliff” and debt-ceiling crises, trial balloons have been floated that agreement has been reached to use a new CPI measure—the C-CPI-U, which tends to understate inflation even more than the CPI-U—as way of deceptively reducing cost-of-living adjustments to Social Security, etc.  Not too surprisingly, public reaction appears to be turning increasingly negative, as the concept gets broader exposure in the popular press.

Public Furor Mounts Over Proposed Use of the C-CPI-U to Short-Change Social Security Recipients on Their Cost of Living Adjustments.  The chain-weighted CPI-U (C-CPI-U) is the fully substitution-based inflation series that is under serious consideration by those in Congress and the White House as a replacement for the CPI, with the goal of cutting Social Security cost-of-living adjustments (COLA) by stealth.  A fully-substitution-based inflation index used in COLA calculations would reflect lower inflation than would the CPI-U or CPI-W (used for Social Security), resulting in fraudulently- and artificially-reduced cost-of-living adjustments to social programs, retirement funds, etc.

If the people controlling the U.S. government were honest, they simply would tell the COLA recipients that payments were being cut as part of the effort to balance the budget.  Yet, no one in Washington has the political courage to suggest such a thing, openly, hence the regular deception that so often surfaces in the headline budget bargaining.  …

Reducing COLA by artificially reducing CPI reporting is not new.  Had the politicians not pursued similar policies successfully in the 1980s and 1990s, Social Security payments would be more than double current levels… annual SGS – CPI Inflation… (using) the 1980-based measure came in at 9.4% in November …” (emphasis added), “November CPI, Industrial Production”, 12/14/12


The proposed forced Investment of Present and Prospective Retirees 401(K) Assets in U.S. Treasury Paper about which we earlier wrote, is now followed by yet another prospective attack on Retirees Security, and indeed on the Wealth Security of those who hold $US Denominated Assets.


The Prospective Rigging of the CPI Calculation Protocol would , yet again, make the “Official” CPI even further removed from The Inflation Reality.


The Reality is that the current U.S. Inflation Rate, 9.4%, is already Threshold Hyperinflationary.


And, of course, Official Numbers-Rigging is not limited to the U.S. We have earlier noted Chinese and Eurozone Numbers-Rigging as well.


But the Key Point for Investors is understanding the Motivation behind Government and Mega-Banks pushing for e.g., Mandatory Government Securities Investment, and changing the way Inflation is calculated.


The Powers-that-Be in the Global Banking and Finance community know that the ever-increasing Money Printing – QE to Infinity – is already leading to increasing Price Inflation, which they wish to hide, and thus eventually to Massive Sales of Paper Treasury Securities (for which they wish to have Buyers, e.g., via 401(K) Funds).


Of course, Part and Parcel of The Powers’ attempt to extricate themselves from the Crises of their own making is the Ongoing, for years, Campaign by The Cartel (Note 1) to suppress the Price of Gold and Silver.


That is because increasing recognition of the legitimacy of Gold and Silver as Real Money tends to devalue their Paper Treasury Securities and Fiat Currencies.


Regarding the Ongoing Takedown of Gold and Silver Prices, the Advice of Precious Metals Guru, Jim Sinclair, is worth heeding.

Dear My Dear Extended Family,

Hi Jim,

How should I read the negative pressure over gold and gold stocks? What’s going to change this negative scenario?


Dear CIGA Arlen,

This is capitulation everywhere. This event has been a manufactured market move since $1800, with clearly planned and executed intervention. The gold price take downs during low volume periods internationally is a known price moving only tactic.

I simply shut off the machine because all the regular causes for the gold price will make themselves effective with time. A manufactured market event will not change the trend. Even the most professional can be reduced to sheeple by their emotions.

I refuse emotions and emotional people in a market context. To save yourself from all this that has happened and will continue to happen requires commitment and courage.

You have it or you do not. Admit who you are and act accordingly.

Like every mistake made by Westerners, what you see today is simply driving gold into Asian control.


“How To Read The Negative Pressure Over Gold And Gold Stocks”
Jim Sinclair,, 12/18/2012


My Dear Extended Family,

You cannot fix the problems of the Western Economic system by breaking the telltale thermometer, which is the price of gold.

There is not one professional who does not know sales in extreme volume at a time of low activity internationally have but one purpose, and that is to reduce the price of gold.

Charts and TA in such a manipulated, manufactured market, as understood by you, are totally useless. This is a move of desperation by the Fed via the gold banks based on the false premise that attacking symptoms without meaningful economic intervention is going to cure the problem.

Gold is going to $3500 and above. The US dollar is headed to .7200 and lower.

We are once again giving away greatness by driving gold into the coffers of Asia at bargain process that a powerful academic bureaucrat has selected. It is just that simple.

Nobody said survival from the onslaught of the demons would be easy, but it will be successful.


“A Move of Desperation By The Fed”

Jim Sinclair,, 12/20/2012


And the Advice of brilliant Commodities Trader Dan Norcini is worth heeding as well.

“Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.”

Trader Dan Norcini



Regarding Official Political data, fortunately, there are Official as well as privately Numbers which tend to better reflect Economic and Financial Realities knowledge of which is essential for successful investing.


In China, for example, electricity usage is a better indicator of GDP than say their Massaged and Political GDP Numbers.


Generally, the Prices, Prospects and Trends of Essential Assets which get used, and get used up, are the very Best Indicators upon which to base wise Investment Decisions.


They are the best Indicators because, since they get used up, their prices are hardest to manipulate.


That is why we Metaphorically say that the Price of Crude Oil “tells the Truth”. Similarly, the Price of Essential Food Grains, Wheat, Corn and Soybeans, “Tell the Truth” about Inflation and Economic Activity generally, as well increasing demand the World’s 80 Million per year population growth.


For Profit, Protection and the Real Numbers which reflect Inflation and Economic Activity, track the Prices of the aforementioned Assets which get used up. Regarding our specific Recommendations for profit and protection, see Notes 2, 3 and 4.


Captain Hook’s advice regarding the $US is applicable to most Fiat Currencies.


“…Western central banks are having their bullion reserves run down to keep their scheming ways from being discovered, which will eventually cause the need for a price adjustment upwards. The bad news associated with this is unfortunately most Westerners will not participate because they neither understand nor own many precious metals, which will make surviving a financial meltdown difficult indeed.  


… “without a doubt the ‘big event’ that is coming down the pike eventually that will define the endgame for the American Empire is when it becomes apparent to everybody (including American’s themselves) the $ is on its way out as the world’s reserve currency, and they accelerate the sale of $ denominated and US based assets, which includes debt securities. (i.e. if they are held as investments.) This process is of course already well underway, with direct trade and petro-dollar exclusion deals between countries becoming increasingly common. But the real problem for the $ will come when it loses it’s safe haven status – that’s when there will be no saving the $ from the type of dramatic waterfall event implied possible by the Fibonacci resonance related projection… .


“First they will sell US assets, and then the $, with both of these conditions favorable for higher interest rates and precious metals prices. This is when the Dow to Gold ratio will reach unity, or lower, as the masses realize the emperor has no clothes, meaning the US is as much a financial basket case as Greece, and the only way to preserve one’s wealth is to exit fiat currency related economy(s).


“And there’s only one way to do that – in desired tangibles – with gold and silver at the top of the list.”


Captain Hook via



For Protection against the Rapidly Eroding Purchasing Power of Fiat Currencies, favorably consider investing in Essential Assets which get used up and above all Buy Physical Gold and Silver and Quality Mining Shares on the Dips.


Best regards,


December 21, 2012


Note 1: We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster’s December, 2009, Special Alert containing a summary overview of Intervention entitled “Forecasts and December, 2009 Special Alert: Profiting From The Cartel’s Dark Interventions – III” and Deepcaster’s July, 2010 Letter entitled “Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds” in the ‘Alerts Cache’ and ‘Latest Letter’ Cache at Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at, including testimony before the CFTC, for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster’s profitable recommendations displayed at have been facilitated by attention to these “Interventionals.” Attention to The Interventionals facilitated Deepcaster’s recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably.


Note 2: A well-known Billionaire increased his holdings in one Asset by 49% to $224 Million in the third quarter, according to SEC filings. We have earlier recommended investing in this Asset. We agree with the Billionaire that now is the time to dramatically increase ones Investment in this Asset.


Therefore, last week, we issued a recommendation suggesting you consider doing the same, via a leveraged double long ETF. We suggest this in spite of the less-than-positive Economic news.


In spite of the Washington, D.C. gridlock.


In spite of ongoing Financial scandals.


We expect this Sector could begin its launch up strongly as soon as tomorrow. If so, now would be a time to “get in.”


To see our Recommendations and Forecasts for Key Sectors, read our recent Alert, “Buy Reco re. High Potential Asset; Forecasts: Equities, Gold, Silver, Crude Oil, & U.S. Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates,” in ‘Alerts Cache’ at


Note 3: The world’s population increases by over 200,000/day. That’s net births over deaths. That’s one heck of a large potential market increase for Goods and Services, provided that the increasing population has the Purchasing Power to acquire the goods and services they need and want.


Since not all desired goods and services can be acquired, people have to prioritize. Thus some goods and services get bought and others not.


Our High Yield stock recommendation earlier this month is for a company that makes a product essential to a Sector which is the very Top Priority when it comes to consumer purchasing decisions. And its recent yield is 8.8% to boot.


And perhaps best of all it is very well situated to be profitable regardless of general economic and financial conditions, including Prospective Central Bank-generated Hyperinflation.


[And for those very sophisticated Investors who like to sell covered calls or naked puts, the high option premiums on this High Yield Recommendation could make that very lucrative as well.]


And we issued a Markets Warning recently regarding a substantial impending Market Risk for Traders and Investors.


To see our High Yield Recommendation and Market Warning read our recent Alert “8.8% Yield in Top Sector Reco; & Markets Warning! & Forecasts: U.S. Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates, Gold, Silver, Crude Oil, & Equities” posted in ‘Alerts Cache’ at


Note 4: There are Magnificent Opportunities in the Ongoing Crises of Debt Saturation, Rising Unemployment, Negative Real GDP growth, over 9.0% Real U.S. Inflation (per and prospective Sovereign and other Defaults.

One Sector full of Opportunities is the High-Yield Sector. Deepcaster’s High Yield Portfolio is aimed at generating Total Return (Gain + Yield) well in excess of Real Consumer Price Inflation (9.82% per year in the U.S. per

To consider our High-Yield Stocks Portfolio recommendations with Recent Yields of 10.6%, 18.5%, 26%, 15.6%, 8%, 6.7%, 8.6%, 10%, 14.9%, 8.8%, 10.4%, 15.4%, and 10.7% when added to the portfolio; go to and click on ‘High Yield Portfolio’.


  1. The Elite are not ready for everything to crash yet as they have not created enough debt yet. When the Elite are ready that’s when the PM’s will go up as Gold and Silver are the Elites Currency.
    As for Social Security, hell I’m expecting to lose mine including my house that’s why I’m stacking big time. ( If I lose SS I Lose My House) But I’ll Buy It Back Later On, With Some Of My Stack.
    As for the Fisical Cliff don’t worry about that as it’s a smoke screen for what’s really happening behind closed doors. I wouldn’t be surprised if Obama hasn’t signed an extension for the Federal Reserve to continue after the end of December.
    It’s Going To Be One Telling Year Coming Up. Stack, Stack, Stack.

    • @Marchas45: I read somewhere that back in the 50s or so that congress passed some laws that nullified the 100 year charter of the federal Reseve System and that its charter is now basically opened ended. I don’t know if it’s true but I have yet to hear anything in any public forum to the contrary. There has been nothing about having to renew or extend its charter in the news that I’ve read about. Have you?

    • @RRG Well you got me thinking and went and did some research, what I came up with was a 50-50 split Lol
      Here’s what’s I came up with but I’m still not a 100% convinced. Lol Maybe I don’t want to be. lol
      The original Federal Reserve Act of 1913 did indeed provide for expiration of the corporate “power” of the twelve Federal Reserve Banks to exist in 20 years from the banks’ organization (not the adoption of the Act).

      Sec. 4 … the said Federal reserve bank shall become a body corporate and as such … shall have power: … Second. To have succession for a period of twenty years from its organization unless it is sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law. Federal Reserve Act of 1913 (P.L. 63-43, 38 STAT. 251, 12 USC 221).

      However, this 20-year corporate life was changed to perpetual in 1927 by Act of Feb. 25, 1927 (44 Stat. 1234) as follows:

      Second. To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.

      This is codified in the United States Code, 12 U.S.C. § 341. See…1—-000-.html

      This is where it stands today. Each of the U.S. Federal Reserve Banks can only be dissolved by an act of Congress or “forfeiture of franchise for violation of law.”

      Another One:

    • I’m right there with you, Charlie, only I prefer stacka-stacka-stacka!  It rhymes better with BRAKKA-BRAKKA-BRAKKA!  Full auto Rock-n-Roll!  🙂  lol

    • “Second. To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.”

      Seems to me that the LIBOR rigging that has been going on with the Fed’s knowledge should constitute a crime of sufficient magnitude to fulfill this obligation for “forfeiture of franchise for violation of law”.

  2. A little off topic but in the news today…..Carleton Fisk, famous retired catcher for the Red Sox had a break-in at his residence and all they took was his SILVER COINS! Poor man. Didn’t have it hidden well enough or showed the wrong person his stack. Hope he doesn’t have to rely on social security now….

    • I’m deeply saddened EVERY time I here of these things. All the sacrifice and self-denial (let alone the ‘market’ crap staged to scare the hell out of folks to boot) that a stacker endures is all wiped away by some self-indulgent, sociopathic low-life scum-bag thief. Oh, for the ‘good old days’ when that sort was tried and hung.

      That and unexpressable distrust for government, is why I just leave my stuff in the ground. I guess if things really do go totally haywire, a few lucky sods a millenium or two down the road will find it little by little.   

    • “Oh, for the ‘good old days’ when that sort was tried and hung.”

      Or, when caught in the act, was simply hung without wasting tax-payer money on a trial or a lengthy incarceration.

      Speaking of such acts of cowardice, I recently read that homes with even rudimentary video security systems were 3x less likely to be broken into than homes without any security system.  Failing that, a small to medium sized dog is a pretty good deterrent to those planning any mid-night banking withdrawals… especially when backed up with a pump 12-gauge.

      Personally, I am FAR more concerned about the thieves in congress and the white house.  That idiotic plan that we keep hearing about to force  401K and, presumably IRA and other retirement funds, into US sovereign debt instruments absolutely sucks.  Last year my mutual funds gained just under 14%.  Not too shabby.  Would hate to see that converted into a bunch of low-paying junk sovereign debt earning what… 2% or less?

      This is like the old joke:  

      Question:     What is the difference between congress and 535 hookers?  
      Answer:       Congress can screw everyone in the whole damned country all at once.


  3. “All inflations are created equal but some are more equal than others”  QE Farm

    The Mega Banks hold trillions in private pension accounts. The administration will ‘nudge’ them into compliance with these pension expropriation mandates. By waving billions of fee income in front of these banking whores, the government will demonstrate  benefits in myriad ways, (least of all the great ‘get out of jail free’ card). As the bankers avoid the cross bar hotel the new pension grab will help them lock down a death grip on client accounts profiting immensely from this forced rotation into Government controlled GRA (Guaranteed Retirement Annuities)
    Two major benefits
    A  They are losing hundreds of billions of dollars in accounts fleeing the retail market.
    B. They would quickly gain quick permanent  control over these trillions, thus avoid the leakage of accounts.

    1. Conversion out of  stocks  and bonds will produce fee income
    2. Conversion to GRA accounts generate immediate income
    3. Annual fees charged on  the forced conversion accounts–mandated by goverment and corrupted in nature
    4. Fees for payment of monthly income
    5. Fees for maintenance on line or in person
    6. Fees for disposal of assets upon demise of the account holder
    7. Reward fees from the government of acquisition and retention of accounts
    8. Fees for acceptance of monthly and annual forced payments by beneficiaries
    9.  Fees for retention and payment of taxes remitted to the goverment.
    10. Fees paid to government for annual audit and maintenance.

    It reminds me of a limerick

    A prostitute from Peru
    Flled up her privates with glue
    She said with a grin
    If they pay to get in
    They’ll pay to get of here too

    The Treasury, Fed and US Government at all levels knows the game is ending.  Endless printing is in(hyper)flationary.  Selling US Treasury bonds into this certain knowledge of 10% plus inflation with coupon rates of 1.8% is a complete non-starter. No one will voluntarily buy this garbage (except for governments in worse financial condition, like Japan.
      It is absolutely necessary to extract pension plan funds to pay for government.  Once the $8 trillion in private plans are frog marched into the GRA plan the government will  no longer have the need to lie about the true inflation rate. It is also manadatory that the government require a forced annual ‘contribution’ of 5% to the fund, soon to increase to 7%, then to 10% or more, just like the forced taypayer payments to Social Security.

    The government interest rates will rise by 200-300%. The investment rates for the GRA will remain static at 3%, insuring a 50-75% decline in the face value of the bonds.  Value COULD drop even more if inflation based interest rates rise to nominal levels.  The GRA recipient will receive a fixed rate of income, declining in monthly   buying power as the inflation rates continue upwards.  Once the recipient passes away, half the GRA escheats to the governent, despite the fact that this retirement plan was once the private property  of the GRA owner.  The heirs will receive virtually nothing of value after the erosion in hard value goes to zero. 
    This is how the government defaults on its entire debt structure.  In California, this plan is already being implemented to help save and stabilize CALPERS, the worst run pension plan in the country
    If you doubt for a moment any elements of this plan, I have researched it. It is real and has been voted into law and upheld with several Obama Executive Orders. It’s coming.
    If you have a private retirement and can extract yourself from that plan, you will be immeasurably better off in the long run. Your heirs will thank you too.

  4. RGR and Pat Fields. I’m thinking Executive Order is in order for the Fed.  NDRP probably has that provision.
    Our situation reminds me of Mort Sahl and his definition of Transcendental Meditation. 
    TM consisted of a ‘hairy little mother talking above your head while putting a bite on your wallet.’
    Our politicians are nothing more than quasi eloquent narcissists. 
    At least with TM you could  get in your car and drive yourself “OM”with gas costing 25 cents a gallon

  5. They are most certainly talking about it in the finance committees of the Senate and the House. They will get around to it as they become more and more desparate to hide the truth of our national fiscal situation. With the levels of debt the gov. is accumulating even the retirement accounts will not stem the tide of collapse but mearly give them a little more time to prepare their reaction to the publics reaction when it fanally “gets it”, we’ve been robbed!  Rob them slowly, then smash them quickly if nessesary.

    • Correctamundo RGR  You’re accurate that this just buys some time.
       I heard the  extraction will take place at about 25% a year.  That is $1.5-2.0 trillion a year, probably just enough to manage the deficits that’ll rack up in the next year or two.  This plan might buy 4 years if the pension plans that are still private don’t crater in value due to a decline in equities. 
      When C. Fernandez,  the Pres of Argentina,  expropriated $30 billion, the entire private pension system, she said it was to protect the peso.  Once that was spent, the country is now in peril of default on its entire foreign borrowings,  if it hasn’t already happened.
      When leaders of a country have an insatiable desire to separate the people from their money to keep the financial wheels on for another year, whatever scraps left over will look like a fortune to these buggers.  Our private plans are just a small part of the Road to FIAT Perdition.

    • “When C. Fernandez,  the Pres of Argentina,  expropriated $30 billion, the entire private pension system, she said it was to protect the peso.  Once that was spent, the country is now in peril of default on its entire foreign borrowings,  if it hasn’t already happened.”

      Right… and the value of this is that not only is the government financially f***ed but so are the citizens, who now have next to nothing left of their once generous retirement savings accounts.  

      My thought is that if the US Gov is so intent on financially screwing itself to death, it really ought to leave us alone.  This is like a farmer sparing some seed from the table THIS year so he and his family can plant and eat NEXT YEAR.  Of course, with the month-to-month thinking in which these idiots specialize, no one in the Gov is thinking THAT far ahead!  🙁

  6. M45  Funny you mentioned about control and coming at us from all sides.  Nature is instructive in its violence.  I am watching Nat Geo Wild.  4 Killer whales surrounded a seal on a small ice floe.  They couldn’t reach the seal directly so they lined up 4 whales wide, surged forward with enough force to create a bow wave that washed the seal off the floe.   The result?  Seal dinner.
    My lesson drawn from this?
    When 4 mega banks want to push me off my position, nothing they can throw will dislodge me.  Being in debt is like sitting on a very small ice floe.  Sooner or later the killer banks will get you.  Living with no counterpart risk is one of the best defenses.  Harpoons are handy too. 
    No gun show today.  The highway was closed due to snow but a local news paper reported that the crowds were 10 deep. I don’t like feeding frenzies whether they are killer banksters or people rushing to buy the last box of ammo. 

    • Yeah, I saw that show and kept wondering why they HAD to grab the seal by the tail.  The narrator said that they wanted to avoid the seal’s snapping jaws but my thought was that one CHOMP! from a killer whale on the seal’s belly or chest would end ANY thought that the seal might have at snapping at anything.  Seemed to me like the killers were working hard for not much meat.  That seal was about 1/10th of the size of any one of them and there were 5-6 of them.  Seal snack, anyone?

  7. Its all about realizing/defining WHO is the King of the Jungle.  In “our” jungle, the government, banks, politicians, and unions are the collective Kings.  We (silver stackers), while being the peons, still have a distinct advantage over the peons that don’t stack.  Now THERE is a group that is FUCKED!  When the Obama gimmies run out–and they will–then we will need our reserves (food, water, etc.) and guns/ammo to ensure we are able to continue to…..STACK!

  8. People I know who are on social security like myself have been feeling the inflation crunch for to long. They screw with it more and they are going to have the entire retired population of the US on their backs screaming. 1.7% increase for next year, a whopping $21 a month more I get. Might buy a few groceries…

    • The inflation numbers they report are a lie anyway they changed the reporting under clinton. You won’t be alone screaming either plenty of my Veteran friends are pretty sick of this crap being foisted on the American people who paid for SS.

      Is the Government Wrong About Inflation?

      The American Institute for Economic Research, a Massachusetts-based firm, produces a monthly Everyday Price Index, which finds that as of September, prices had grown by 5.2 percent over the course of 2012
      Honestly I am pretty sick of people claiming SS is a welfare program myself and wanting to stick it to the people who paid their dues! The largest block of voters the GOP had was older people but they want to throw them under the bus on Social Security too.  

      Republicans About To Fall For A World Class Social Security Bait-And-Switch Con
      Social Security is a self funded program paid for by people and their employers. By law it can’t tax or deficit spend and it doesn’t add one red cent to the deficit.  Our government owes SS $2.7 Trillion dollars key word here is OWES.  In fact the SS trust fund is the LARGEST holder of our debt.

      The TRUTH About Who Really Owns All Of America’s Debt

      Would they try to default on China?  Let the politicians cut their own cushy pensions or real welfare programs that do add to the debt.  SS is a debt like any other and furthermore the Constitution has this to say…
      Sect. 4 of the 14th Amendment. It reads in part:
      ”… .the validity of the public debt of the United States, authorized by law… shall not be questioned”
      And second, there is this Criminal Mischief statute 18 US 1361. Government property or contracts
      “Whoever willfully injures or commits any depredation against any property of the United States, or of any department or agency thereof, or any property which has been or is being manufactured or constructed for the United States, or any department or agency thereof, or attempts to commit any of the foregoing offenses, shall be punished as follows:
      If the damage or attempted damage to such property exceeds the sum of $1,000, by a fine under this title or imprisonment for not more than ten years, or both; if the damage or attempted damage to such property does not exceed the sum of $1,000, by a fine under this title or by imprisonment for not more than one year, or both.”
      Even Ron Paul collects Social Security btw
      The Great American Retirement Scam: Why The Wealthiest CEO’s In America Want To Take Away Your Social Security

      Even the Weekly Standard recognizes the difference between Welfare and Social Security

      ‘Welfare Spending Equates to $168 Per Day for Every Household in Poverty’
      The universe of means-tested welfare spending refers to programs that provide low-income assistance in the form of direct or indirect financial support—such as food stamps, free housing, child care, etc.—and which the recipient does not pay into (in contrast to Medicare or Social Security)
      Who Pays for Social Security?
      NSC Warns Means Testing Could Be Part of Congressional Deal
      “Now let’s look at how that $2.7 trillion Social Security surplus arose. In 1983, President Ronald Reagan sponsored an increase in Social Securitytaxes, changing the program from pay-as-you-go to collecting much more taxes than it paid in benefits. The idea was to have the Boomers prepay part of their old age benefits.”
      “According to a 2011 study by the Urban Institute, a married couple retiring last year after both spouses had worked throughout their lifetimes wound up paying about $598,000 in Social Security taxes. If the man lives to 82 and the woman to 85, they can expect to collect about $556,000 in benefits.”

    • @Lady Liberty

      In the 1960 case of Fleming v. Nestor, the U.S. Supreme Court ruled that workers have no legally binding contractual rights to their Social Security benefits, and that those benefits can be cut or even eliminated at any time.

      Ephram Nestor was a Bulgarian immigrant who came to the United States in 1918 and paid Social Security taxes from 1936, the year the system began operating, until he retired in 1955. A year after he retired, Nestor was deported for having been a member of the Communist Party in the 1930s. In 1954 Congress had passed a law saying that any person deported from the United States should lose his Social Security benefits. Accordingly, Nestor’s $55.60 per month Social Security checks were stopped. Nestor sued, claiming that because he had paid Social Security taxes, he had a right to Social Security benefits.

      The Supreme Court disagreed, saying “To engraft upon the Social Security system a concept of ‘accrued property rights’ would deprive it of the flexibility and boldness in adjustment to ever changing conditions which it demands.” The Court went on to say,“It is apparent that the non-contractual interest of an employee covered by the [Social Security] Act cannot be soundly analogized to that of the holder of an annuity, whose right to benefits is bottomed on his contractual premium payments.” 

      An extremely small minority is so neanderthal that they want to simply pull the plug on socialist security.  What serious folks want to do is stop the charade of it all. Young folks ought to be cut loose to build personal retirement savings while the living expenses of oldsters are ‘grandfathered’ into continuation … contingent on genuine need.

      I’m very nearly 65 myself. I live an … exceedingly … humble life, yet in my 50s I irrevokably withdrew from the scheme by Duly Certified Notice. Dragging down the whole country’s economy for selfish principal didn’t seem morally correct so I couldn’t remain associated with it anymore.

      You’d better face up to it. The politicians have been lying to you and stealing from you your whole life. What they’d taken is gone. No less an authority than the Justices of Supreme Court (in rare plain candor) are on record as having told you so.

  9. Mary B   You eloquently point out the dilemma of Social Security. The people who made the decades-long forced contributions have received -0- return on investment capital, thus the piss poor yields. The government lies about inflation so the shortfall on social security can be hidden by placing on the people’s back.  No one has a voice loud enough to protest the grind of diminishing income.  The one thing that can front run this is precious metals.  I hope they launch soon to.  My wife and I are both at the age where we can apply for SS and it ain’t no picnic.  They are so busy they will short my wife one month of income since the paperwork process is so slow. When you compare what public employees get, roughly 3 times the income and usually without any out-of-pocket costs.  That disparity stinks IMO

    All my best to you. 
    You have made yourself very self reliant and that is the other way people can reduce their overhead.  That should be an inspiration to others,  Merry Christmas

  10. @PatFields:  Well Done!  Yeah, the Supremes took us (collectively) to the wood shed.  I’ve been trying to explain this exact case to my wife so she can start to get adjusted to NO SSI when it goes by the wayside in the coming weeks.  Of course, should that indeed occur, then the folks should get ready for the next shoe to drop–401K and IRA’s–.  Lots of mortgages will become upsidedown in a hurry.

  11. Lady Liberty  your post is excellent and has some much detail about the social Security system that it should be the ‘Best Of ‘category.   The one part that fries me is the Means Testing.  I’ve suspicioned for years is that a person will soon be required by Social Security to disclose their tangible net worth.  Failing to do so would result in refusal of benefits. If a person was found to have rightfully declined to diclose their asset base then the benefits would have to be repaid and subsequent denial of payments.  The means testing is used with income, something that is harder to keep under the radar. But imagine if you had $1,000,000 in precious metals and failed to disclose this. 
    Disclosing it would reveal the government that you had these assets.  This would be very unwise.  A $1,000,000 nest egg of phyzz is hefty but in the minds of the gremlins in the SS administration, they could easily say this was TOO MUCH MONEY and ‘you are on your own’  Eat your phyzz Chuck, nothing from the gummint from you. 
    You would also subject yourself to scrutiny if you sold some precious metals with the dealer announcing this sale through a 1099 form disclosure.  Once again the gummint will sniff out your physical assets and come after you for failure to disclose.  That paper trail would be as wide as an interstate highway.
    Of course, the best way is to tell the government nothing. It’s none of their business.  It’s your money, forcibly extracted from you for 40 years by the draconian and heavy hand of the government.  Denying you the payments of YOUR MONEY would be tantamount to theft of your personal resources.  Silly me that I’m so trusting to think the government is not capable of being this since this the largest part of the government operations. Theft, plain and simple.
    The best think I can think to do to protect yourself from this thievery is tell the government nothing. Woudl you tell a common thief the nature of your assets. Not likely. Telling the government of your asset base is little more than telling the world’s largest criminal enterprise what you own.
    Maybe it’s just me and my paranoid nature but telling the goverment anything essential make no sense.
    Do not report sales of precious metals (My personal stance) and tell them nothing of your asset base. The government that thinks the increase in value of your REAL MONEY should be taxes is a government that is beyond redemption.
    The government lies, cheats and steals from us.  Turnabout is fair play if that is what it takes to protect ourselves from this rapacious beast in Washington DC.
    And now I’ve gone and gotten all ranty on Christmas Eve.
    What the heck, I had to get that off my chest

    I wish all the Silver Doctor readers and those you work hard to make this site possible, the Merriest of Christmases.
    We have our families, friends and the people important in our lives to spend some time with. We have the knowledge to protect our loved ones and prosper in ways both financially and spiritually.
    Three cheers for the New Year, 2013 will be lively

    • @AGXIIK The matter of ‘Means Testing’ is simple enough from my view. If someone makes a claim, they undergo the tests. If they make no claim, no questions asked (or even permitted). We have to remember that States of the Federation are separate, foreign entities in relation to their General Administrator (‘federal government’) and its Treasury is in its own domain. Making a claim on that Treasury is like demanding foreign aid.

      The fact is that there’s no authority in the Constitution (Law on governance) for this, as regards the State jurisdictions. So, to make the claim, one has to traverse under exclusive federal jurisdiction and by provision for it at Art. IV, Sec. 3, cl. 2, no Constitutional limit applies. No Constitution, no ‘Bill of Rights’. “I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents…” –James Madison

    • @Marchas45: Say it ain’t so! Mightn’t you have a dollop of acreage where someone could pay you tribute to park an RV or store a shipping container with their stuff to help ease your financial pain?

  12. Good Morning Pat Fields.  Good morning Doc. I see you are signed on  Merry Christmas to you both and to all the Silver Seekers and Silver Speakers.
    Pat, you make a good point and I think I understand the gist of your note.  That foreign entity aka the Federal Government seems to willfully and gleefully cross borders to make our lives unpleasant, even to the TSA and its business with our business. If we have to cross state lines or exit the country they must think that this gives them permission to handle our ‘private’ affairs. At least they use rubber gloves.
    The federal goverment required rendition of tax funds from the people to fund a retirement plan.  What they pretend to extend of benevolence in retirement funds is then just an illusion, a paper entry of the hundreds of thousands in FIAT currency extracted from each their subjects.  Promises of the past are little more than an ‘ahem, cough, cough, look away SHAM. They take without representation but give back with strings attached.
    I got that part, most certainly, after my research into Social Security, Medicare and whatever upcoming GRA boondoggle awaits.   After reading that every prior retirement plan promised by the government of just about every nation in the last 100 years, most particularly that of Kaiser Wilhelm’s socialist pension plan foisted on the German people, has ultimately failed after removing a signficant portion of the people’s well being, I am not at all sanguine about our chances. 

    You mentioned that you withdrew with a Duly Certified Notice. I’ve never heard of that.  What did it accomplish and what did you withdraw from?

    And a quick good morning to Jim Rogers. The precious metal markets are not manipulated. All markets are subject to perfect vertical price movements on Christmas Day. LOL

  13. Thanks for all your cogent and thoughtful posts Pat.  They make me think and remind me to keep working on my writing skills. I’ll drill down into the Gordon link asap.
    Aw Crap Crap Crap I just listened to Gordon and wrote a statistic post that did not stick. Suffice it to say, I got what Gordon is saying and went off on what has happened to the American family as a result of the various tax burdens. If you devised a plan to damage the families in this country, the power to tax is certainly being used as an WMD

  14. @AGXIIK The ‘tax burdens’ only apply to folks who’d been blindly tricked into signing undesirable ‘contracts’ like ‘Marriage License’ and ‘Birth Certificates’. among myriad others … all initiated fraudulently … by government’s intentional obscuring of material facts that if divulged would cause MOST folks to completely reject them. When did government EVER tell ANYONE that signing these things obliterates our Natural Rights in the ‘bargain’? NEVER! It’s ALL DEMONSTRABLE FRAUD.

    For instance, I’m currently contesting a Sheriff Sale of my land and building premised on Property Tax (an oxymoron in that ‘Property’ in things is a right and rights can’t in themselves be taxed) purported on government’s post-contractual presumption that since I agreed to assume the Seller’s tax obligation when I contracted a Principal Money Mortgage, that that point of agreement could be extended … infinitely! What government is doing is presuming that because profitable revenue was generated (to the Seller) during the course of the Mortgage, such lawfully taxable revenue continues beyond the Mortgage’s satisfaction! They’re depending on belief in my ignorance (which is, of course generally the case) of the fact that the tax ia an excise on the presumed … PROFITABLE REVENUE. They fraudulently presume that that taxable revenue stream continues FOREVER. 

  15. Pat Fields   I amon the same page as you. Property taxes are taxes most foul.  You may be able to live a humble life with very small income, something we practice daily, but if one owns property the tax man knows who you are and will literally kill you to collect the king’s extortion.
    The original Engllish taxes were established by William the Conqueror about 20 years after the Battle of Hastings. growing up in Canada we were foce feed a steady diet of  British history. Willie the Konk as we called him, create the Domesbook, named thusly because of its doomsday effect. The property owners were asked to voluntarily provide an description of everything they owned including servants.  Once this was recorded in the Domesday Book, Willie had the property owners by the nards.  That Olde Englishe for bollocks, but I’m sure you knew that. 
    This data, which heretofore was completely unknown, allowed Willie to extract taxes from the property owners to finance the expansion of his wars, castles and empire building.   As far as I am concerned, everything went down hill from that point.
    I hate property taxes for many reasons, not least of all it is a forced expropriation of my financial corpus without any form of representation.  Living in Nevada, a state with no income, capital gain or estate taxes,it has a means to coerce the citizenry into paying for their rapacious government.  Of course, I could still live in Taxachuesetts West, the late great Sheeples Republic of Californication.  There is no in way in Nevada that one can get property tax abatement if one’s residence declines in value.  That stinks too.  The king hates to get less when economic conditions decline.
    I wish the best for you in your battle with the Sheriff of Nottingham.   They were SOBs then and they are jsut as bad now.  Good luck to you

  16. In as far as SS is concerned, it seemed to me the very best of ideas to apply for this money ASAP.  This is not a retirement plan.  It is merely the return of SOME of the money extracted from me and my wife over a period of about 36 years.  These were not contributions, although the SSA will try to tell us that.  They were no more contributions than one contributes their wallet to an armed and dangerous mugger.  

    In any case, it seemed best to me to start receiving this money at age 62.  Why?  Because of 4 things: 1) the actuaries at SSA have calculated the payment for an average lifespan and whether one takes more smaller checks at age 62 or fewer larger checks at age 66, the total will be exactly the same; 2) I wanted to get MY money back into MY hands and not leave it in the government’s hands one nano-second longer than absolutely necessary.  I KNOW how to manage money, nurture it, and make it grow.  I have a 50 year history of doing exactly that and the government does not.  Quite the contrary, in fact; 3) the longer the government has our money the more likely they are to screw it up.  Minimizing their opportunity for this seemed wise; and 4) I am absolutely convinced that means testing will be done.  This is less about politics than it is about mathematics.  The numbers simply do not add up and a desperate and insolvent government WILL do desperate things in its attempt to bring in as much revenue as possible.  What we do not know is whether or not this will affect anyone who is already getting their SS money back.  My thought is that if we are already getting it, we will likely continue to do so, while those who are not may fall through one of the many cracks now forming in the system.  It is certain that younger Americans will be means tested but where they decide to draw that line is unknown.  They keep talking about no changes for anyone age 55 or older.  That may be true or it may simply be their impossible desire and only time will tell which actually occurs.

    There is no way to know how long it will be before the SS system collapses but before it does, by God, I WILL get some of our money back.  This is not some government give-away program, it IS a return of capital… and stolen capital at that!  The good news is that the part that I get is of considerable help in silver stacking.  😀

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