The World Finance & Banking Symposium

Central University of Finance and Economics

Ministry of Education

(Accepted June 9, 2013 for Presentation in December 16-17, 2013)

Beijing, P.R. China


“Social Security in the United States of America:  A Positive and Profitable Cash Flow Device; a Powerful Political Control of People Tool”




Thomas J. Coyne, Ph.D.





This paper deals with the USA’s highly profitable, totally liquid with large cash flow Social Security program.  The presentation here contrasts sharply with egregious errors claiming serious financial shortfalls in the USA’s Social Security finances as found in:  “Social Security’s . . . and the Way Forward,” Nils H. Hakanson, World Scientific Series in Finance: Volume 3.


Chinese scholars in particular, scholars from throughout the world, especially financial economists in socialist countries of Europe need and deserve a much better understanding of how the USA Social Security system works, and why it works that way.  Young minds in China and elsewhere need to read and otherwise know the USA’s Social Security system is profitable, having cash reserves in the many trillions of dollars as we speak.  The effort here is designed to explain how it happens.    







The intent of this paper is to alleviate, if not eliminate entirely, innumerable misconceptions appearing in finance literature so as to allow Chinese scholars and students in particular, others throughout the world in general to know how Social Security works in the United States of America and why it works as it does.  Social Security in the USA has not, cannot and never will incur negative cash flows as claimed by some scholars.[1] 


No danger exists that current recipients of Social Security will see benefits reduced due to inability to pay as threatened publicly in April, 2013 by Barack Hussein Obama II.  Social Security in the USA is but one tool created by government to control voters.  It was not created and is not in existence primarily to help American citizens with their finances in their retirement years.


Social Security as currently operated in the United States is a very important device, an almost critical device, thought necessary by life-long professional politicians in big government, ones who do and say whatever is necessary to remain in political power, to get the votes, to get elected and reelected and reelected.  Social Security is flush with cash and with profit while conventional wisdom in our country and beyond may claim, wrongly, it is broken.


 Any U.S. Senator or U.S. House of Representatives member as well as any financial economist could prescribe a fix for our allegedly broken Social Security program by following the brief solution found deeper in this paper.  This paper describes what needs to be done.  It requires common sense and no more than one-half of one 8½ X 11 sheet of paper, double-spaced, 12 point font to explain. The solution emphasizes competition and private property, fundamental institutions critically important to all Americans but current American government appears to strongly dislike (hate) competition and private property.


The existing Social Security Act, amended, is the suggestion herein, resulting in major improvements in benefits to all Americans.  By way of comparison, recently created Health Care legislation in the USA requires well in excess of two thousand pages of printed material to explain and continues to be written many months after its initial passage by a U.S. Congress and U.S. President, each boasting this Health Care Act has not been read by them.  Their recent Health Care legislation will not work.


The amended or ‘new’ Social Security Act proposal here is (1) theoretically sound, (2) capable of gaining and retaining wide-spread public support; and, (3) it will be work successfully, in a fashion similar to all retirement plans in existence in the USA.  Currently the American government’s Social Security Act implementation is out of step with justice and reality.


The Social Security Act was passed in 1935 and is technically known as the “Old-Age, Survivors, and Disability Insurance (OASDI) program and Medicare’s Hospital Insurance (HI) program.[2]  OASDI is financed primarily by employment taxes which, beginning in 1937, amounted to a one percent (1%) tax rate to each employee with one percent (1%) additional to be paid by his employer, or a total tax of two percent (2%).  The revenue collected by government went supposedly directly into a “Social Security Trust fund.” 


The Medicare Hospital Insurance (HI) tax rate was added in 1966 with tax rate collection for Medicare beginning in 1967.  In 1967 the employee and the employer each paid 4.2%  of the employee’s taxable earnings - a total of eight and four-tenths percent (8.4%) into the Social Security Trust Fund, 3.850% for each of which went to OASDI and the balance, 0.350% going for Medicare.[3]   


Tax rates as a percent of taxable earnings for each, employees and employers, in 2013 are 6.2% or 12.4% total between them WITHOUT Medicare tax payments of 1.45% each, or a total of 7.650 percent each = 15.30% total for all non-governmental working Americans. 


Social Security tax rates are 15.3% of taxable earnings for self-employed non-government American citizen workers.  This is the highest Social Security tax rate to date and reflects a negative attitude by government towards self-reliant, hard-working highly independent individuals.  Contractors, food service individuals, trade service persons such as bricklayers, carpenters, painters, management consultants functioning as entrepreneurs as well as wage and salary recipients pay this Social Security tax in addition to federal, state and local income and other taxes.  Total taxation is not a part of this paper, but represents a very hard hit financially to working American citizens.  Many if not most non-citizens living and working in America fare much better as they receive Social Security benefits without having to work, without having to pay Social Security tax!


Beginning in 1990 and thereafter until 2013 the tax rate was 6.2% each for OASDI and 1.45% for HI totaling 15.3% total social security tax revenue to the federal government, but beginning in 2013 an additional HI tax rate of 0.9% is assessed by government on citizen non-government earned income exceeding $200,000 for individuals and $250,000 for married couples filing joint Internal Revenue Service tax returns.  This 2013 increase in taxable income is not included in percentages presented here. 


Except for the higher income persons mentioned here, the maximum Social Security taxable income for American working citizens in 2013 is $113,700; meanwhile, the average income per person in Wheeling, West Virginia, zip code # 26003, and in locations of similar size and financial stature throughout West Virginia, amounted to only $13,718.50 in 2010, the latest date for which statistics are available.[4] Wheeling’s “national rank” in average income per person at the same time, 2010, was #17,712.  Fellow West Virginians in Big Sandy, West Virginia, zip code, 24816, had averaged annual incomes of $1,901.66 in 2010, ranking Big Sandy citizens in #31,879th place nationally.   All working American citizens must pay Social Security taxes!  Failure to pay results in threats, intimidation, fines, fees and criminal complaints resulting in a ruinous reputation and the inability to survive financially for working Americans.  Social Security is a highly regressive tax.  Non-citizens in America and U.S. government persons fare much better.  


Social Security tax receipts to the federal government are in addition, of course, to federal income tax receipts and innumerable other tax receipts such a fuel taxes but focus here is on OASDI only.  Social Security tax receipts are an annuity received by government from each non-government American worker and serve as a major financial subsidy to government in general, to government employees in particular.  “Social Security” underwrites financial support of illegal alien activities in the United States.  This financial support of illegal alien activity has existed and has been financed in non-transparent ways and means for decades.[5]




 An annuity is a specified amount of money paid or received over a specified period of time at a specified interest rate; in other words, a constant flow of cash for a specified period of time, cash to spend or invest.  Investment of annuity cash flow could be in relatively riskless U.S. Treasury Bills, bonds and/or notes.  A private entrepreneur paying fifteen percent of taxable income into the government could be investing that 15% into his/her privately controlled retirement plan.  If paid into a plan owned and operated by the American worker who earns and pays the money, the 15% qualifies as an annuity by definition.    


Calculate future value factors for a Social Security annuity of $1 compounded at k percent for n periods.  Each period (n) is one year; the compound interest rate is k.  k and n and the amount saved differs for each individual in the USA, and the future value of the annuity paid INTO Social Security differs in accordance with the wage and/or salary of the contributor to Social Security, but the final result is the same:  government keeps 100% of all money it receives from a worker if that worker dies before s/he reaches retirement age.


Future Value Factor of an Annuity of $1 Compounded at k Percent for n Periods, where n equals 25 years and k equals six percent (6%):


                                                                           = 4.2919 – 1 / 0.06

                                                                           = 3.2919 / 0.06

                                                                           = 54.865; quite simply,


FVA k,n =  Future Value of an Annuity = / k


The future value factor of an annuity of $1.00 compounded at k percent (6%) for n years (25) years is 54.864.  Any amount of money routinely paid or received higher than $1.00 multiplied by this future value factor at a time when the interest rate is six percent is the future value of that annuity.  A future value therefore is the amount of money resulting from a lump sum or series of cash flows growing in value to some future date at a specified interest rate.  (A future value factor, FVk,n, may be established for an annuity using different rates, k, and different periods or time frames, n, converting/presenting an annuity into a single future value). 


            Assume a resident of Wheeling, West Virginia had average taxable earnings in 2010 of $13,000 (thirteen thousand dollars) annually and invests only ten percent ($1,300) of it at six percent (6%) for twenty-five years.  The future value of this personally-owned annuity would be $71,324.50 at the end of those 25 years.  (Repeat:  The future value factor of an annuity of $1.00 compounded at k (6%) percent for n (25) years is 54.864; thus, $1,300 received at the end of each period times 54.864 = $71,324.50), received at the end of 25 years.  Had this person set aside this $1,300 annually s/he would have a retirement fund owned by him/her of this amount, S71,000.00 (rounded).  When the worker is required by Social Security law to pay this or any similar amount of money (12.4% annually) to government during the same time frame and at the same interest rate, government owns controls and spends his/her $71,324.50 if the citizen dies before retirement.  Should government own this annuity the dollar financial gain is the same $71,324 – when invested at an assumed rate of 6% for 25 years.[6]   


When any person as in this example dies before reaching retirement age of 62 or 65, neither he nor his estate get anything!  This American citizen cited for illustrative purposes only worked and paid taxes his entire working life into the Social Security Trust Fund in the USA and received nothing in return.  His payments amount to nothing more than an additional income tax.  His estate receives nothing! Professional politicians in government keep his $71,324 and spend his $71,324 as they see fit.  The deceased had and has no voice in any of it, nor do persons to whom he might like to leave his estate; in fact, family of the deceased may struggle to pay burial expenses at the very time government persons are spending his $71,324 - campaigning perhaps for reelection? 


Social Security taxes represent a highly profitable annuity to government from working American citizens, one small example of which is presented here.   Persons paying routinely and not dying before attainment of retirement age, 65 or thereabouts, receive a monthly benefit check monthly of approximately $1,000 with government persons deciding how much money the retiree deserves, should receive and cuts payment checks accordingly.  The maximum Social Security allowance for any retiree, calendar year 2012, was $2,500 monthly according to AARP.[7]  Former railroad workers and their families were told their social security checks will include consideration of their efforts on behalf of the railroads.  Many railroad workers, now retired, receive Social Security of $1,000 (approximate) monthly, the same amount as if they had not worked and paid into Railroad Retirement.


How many West Virginia citizens and ones located elsewhere pay the entirety of their working lives into Social Security and die before reaching retirement age, resulting in government keeping 100% of the future value of the annuity paid?  Social Security Administration was asked on more than one occasion: (1) “What is the average worker Social Security tax payment received by Social Security, nationally and by state (WV, Ohio, Pa, other), 1936 to date; and, most importantly, (2) How many American citizens, workers have paid into Social Security by year and location (WV, Ohio, Pa, other), 1936 to date?  Please provide standard deviation statistics associated with each question, if available.”  No answer.  Social Security does not maintain records concerning such matters.[8]  


The Social Security Administration Statistical Research office near Baltimore, Maryland provides detailed statistics for money paid to persons entitled by law to receive retirement money from the federal government, the expense side of this simple equation, but government provides no statistics concerning the money received from working American citizens during the same time frame, the income side to government of this simple equation.  Always, Income to date has exceeded expenses incurred; in fact, in 2009, the year after Barack Hussein Obama II became president, the Social Security Trust Fund had a cumulative surplus of receipts minus expenditures of $2.5 trillion.[9]


Many persons in West Virginia and elsewhere struggle financially to live.[10]  If they make $13,000 per year and pay in excess of $1,300 of that money to the federal government for Social Security taxes and die before reaching official retirement age, families of these people are made poorer than ever by the government they have been supporting their entire lives.  The result is this:  the people who perpetually control states like West Virginia get richer each year; lower income people get poorer each year; worse yet, political professionals to the best of their ability intentionally retain low income classification people in poverty or near poverty so as to get reelected.[11]  Objections are ignored or countered with threats of making life even more difficult if a non political party devotee is elected, a person with integrity perhaps.  Each family having accumulated through social security payments $71,000 under conditions cited in the example above routinely financially subsidize political rulers!  Fear created by threats of decreases in social security checks and/or payments plus threats to cause other adverse financial conditions for the family results in voters again and again supporting the same political party(s).   


People receiving social security checks monthly in West Virginia and nationally receive no more than a small portion of the profits made on their work by the federal government.  If “death squads”[12] exist in the new Health Care Act as alleged, professional politicians have an opportunity to curtail/control even these necessary-to-survive social security income payments (checks) in WV and elsewhere more quickly. 


Families of citizens who die before retirement age who had saved (invested) $10,000 annually for 25 years at 6% during their productive years will witness professional politicians taking $545,650 from each deceased family member’s estate (S10,000 X 54.865, the future value of an annuity factor, the amount to which $1.00 per period will accumulate in 25 years.)[13] 

How:  15.4% is the Social Security tax in 2013 on $200,000 annual income and equals $30,000 payable for “Social Security.”  If only $10,000 of that $30,000 had been retained the family of the deceased family members would have and own and spend the $550,000 (rounded) cited here.


With the lower average income and savings example at the $13,000 level as with the higher average income and savings schedule at the $200,000 level, if the Social Security Act is amended to assure payment into a retirement fund NOT managed by government but managed by a non-governmental investment adviser ALL persons, and all citizens, involved would be exceedingly better-off financially.  American Blacks in particular would benefit because more American Blacks die sooner than age 65 than do whites; thus, blacks are punished by the current system to a far greater extent than society at large; yet, black persons almost to a person seem to vote to support, to defend and promote existing Social Security as a program.[14]


If the U.S. population consists of 315,828,671 people; and births are 10,508,418; and deaths are 6,687,175; and 1,838,973 is the net immigration, but only 1,000,000 of the 6,687,175 were in the work force and died before age 65, the federal government made a huge albeit unannounced Social Security profit on their deaths.   


Huge but unreported numbers of American workers nationally die before reaching retirement age with their estate receiving nothing (the $250 burial ‘grant’ notwithstanding), while unreported tens of millions of men, women and children, many if not most of whom are not citizens of the United States, receive unreported tens of millions of dollars in federal Supplemental Security Income paid by Social Security Administration for which they paid nothing – and will pay nothing in the future.  These records are called “classified records’ and/or “personal information about living people” or “confidential financial information.” [15] 


On July 12, 2011 Barack Hussein Obama II said “I cannot guarantee that those checks (social security payments) go out on August 3rd if we haven’t resolved this issue (the tax increase/budget).  Because there may simply not be the money in the coffers to do it (sic).”[16]


If two million people succumb in a given year to Obama HealthCare “death squads” under terms and conditions used as an example herein for low income persons in West Virginia and elsewhere profit to the existing USA Social Security program would amount to one hundred and forty billion dollars in that year ($70,000 (rounded)  X  2,000,000 deaths  = $140,000,000,000).  This figure is one hundred and forty billion dollars!  Fear, threats, intimidating body language, non-stop speeches, unlimited false news media support contribute mightily to the likelihood of this figure being realized in the near future.      


Current Social Security management has almost nothing to do with proper saving and investment programs designed to help senior citizens financially in retirement!  Current Social Security management has to do with people-control.  Government life-long appointed and professional politicians exercise control over citizen taxpayers and citizen voters destroying as they go (1) private property and (2) competition.  A real Social Security problem exists, but it is not financial; instead, it is political.  Government needs to find an acceptable a way to solidify control over people, but without allowing citizens knowing it and, of course, without allowing free citizens to provide for their own retirement.  Government knows independent citizens do not need or want government in their lives.[17]


Current Social Security management gives little or no thought to maximization of internal rates of return (IRR), or planning for high and rising New Present Values and other and significant finance/economic indicators while minimizing costs of maintenance of retirement/survival plan operations.  Who among us ever heard of government concerning itself with return on investment (ROI) attainment and liquidity preferences for retirees?  Government persons in the US are in charge of investing citizen retirement money without having the education, background or experience in investments necessary to succeed.  Citizens are told they must agree.  


Social Security in the United States is a major source of revenue to the government of the USA and an important political weapon, a political tool to control voters.  It works like this. 


Revenues from working Americans paid into Social Security since inception in 1935 have exceeded payments at retirement to working Americans ever since 1935 by a wide profit margin, a financial profit to government that continues to this day.    Assertions to the contrary are unknowingly untrue at best, intentional distortions of fact or political propaganda at worst!  President Obama/Soetoro[18] made false claims (April, 2013) concerning potential U.S. inability to pay social security recipients in full and on time.  The claims are and must be ignored.  Threats to withdraw partially from Social Security commitments serve mostly to harm and further impoverish senior citizens thereby making them more insecure, more vulnerable, less at ease in their old age, but much more easily government controllable.  All of this at a time when we have our first Black president and Social Security statistics reveal 1/3 of all Black Americans over age 65 rely totally on Social Security checks for food, housing, clothing, for their very survival.[19]


The author is a private citizen, born and raised and in receipt of early education in Wheeling, West Virginia, USA, son of an immigrant from Clonbur, County Galway, Ireland, with mother born and raised in America.  Remarks are his alone, unintended to represent or reflect the views of any university, government, or business in the USA including views, if any, of for-profit or not-for-profit organization(s).    


He writes and studies as a direct result of the Constitution of the United States of America, the greatest document ever reduced to writing.  This Constitution provides complete Freedom of Speech, complete Freedom of Worship, Freedom from Want, and Freedom from Fear, among a host of other freedoms.  Distortions of the truth about financial liquidity associated with Social Security create fear and are, therefore, unconstitutional. 


The Constitution guarantees all American citizens freedom from tyranny.  Our Founders believed every government turns eventually against its citizens.  Power hungry professional politicians seemingly cannot restrain themselves anywhere on earth.  Our founders created the Constitution which intentionally limits the rights granted by us to government to those specifically cited in that document.  All government employees are public servants.  We have no rulers.  No rights are granted by government in our Constitution.    


This Constitution restricts the role of appointed and elected American government persons regardless of rank or title.  It assures all Americans, among an important and large number of other things, the right to vote, the right to bear arms, the right to trial by one’s peers, the right to assemble peaceably, the right to be secure in their persons, papers and other possessions, the right to be free of slavery, and the right to petition government:  Importantly, it assures no person at any time or for any reason shall be declared “king” or hold similar title or rank in the USA.  It is unconstitutional for our president to be anything but a natural born American citizen. 




Freedom of the press is also guaranteed by our Constitution meaning our newspapers, radio and television commentators exist with each being free to express facts and figures and political situations as seen by them, or as they may claim to see them, or as their sponsors/owners require them to see.  This freedom is abused when it results in political propaganda, followed by political corruption.  One dwells here mostly on the financial propaganda side of that equation.   


Propaganda, by definition, is the systematic expression, in writing or verbally, of a particular philosophy, doctrine or political viewpoint. The doctrine presented may be untruthful in content.  Often the message decimated is untrue but effective as many if not most recipients of information are poorly or under-informed and/or undereducated individuals.  Heavy use in modern times of political propaganda may be attributable to Benito Mussolini.


In 1922 in Naples, Italy, Benito Mussolini used his newspaper(s) to introduce fascism, a sophisticated form of socialism.  Mussolini’s propaganda was a financial investment philosophy designed to convert private corporations into socialist organizations and to the greatest extent possible do so with little or no one noticing.  Government could and should purchase shares of equity in privately owned businesses and at the end of the year government should vote business proxies in favor of government persons and positions.  By 1929 Mussolini had perfected his propaganda approach, changing European thought and action into a fascist society.[20] 


Mussolini’s co-conspirator, Adolph Hitler, approved the Mussolini approach but thought it too slow for his needs/desires.[21]  Hitler pursued his better known and almost immediately available NAZI (National Socialism) socialist program.  Of the two strategies, Mussolini’s may have been the better by far because when Mussolini started every major country in Europe was capitalist; currently every major country in Europe is socialist.  Mussolini fascist socialism neutralized the Church and was solidified by 1929 and we find now, 2013, socialists from throughout the world attempting to infest the USA with fascist socialism.  Capitalism may have won World War II battles but lost the war to worldwide socialism.


Benito Mussolini proved at least one fact: in a democracy the majority does not rule.  The majority never rules.  The best organized minority always rules! 


Benito’s plan allowed, and to this day allows, government employees operating through government owned and government operated pension and mutual funds, to vote common equity proxies in favor of government persons and government positions in violation of USA Securities & Exchange Commission requirements that the holder of common equity must seek and obtain written authorization to vote any and all proxies before voting common equity proxies.  This SEC rule is uniformly ignored by government pension fund “holders” of equity.  “Owners” of this equity, the ones who take all the financial risk, suffer financially and politically as a result.   


Freedom suffers, the country suffers when government slowly and surely takes control of corporations while the population at large assumes, wrongly, corporations are privately owned.  This proxy voting procedure is a criminal offense when practiced by non-government persons, but in the USA no citizen has any standing, any legal right to pursue any criminal(s) complaint.   Government has reserved that right for itself; however, our Constitution disallows government elected and appointed personnel to pursue personal political and financial interests.  “We the people” retained proper controls in the Constitution. This Benito Mussolini financial investment policy in practice in the USA is fascism, also not allowed in our Constitution!


Fascism is a sophisticated form of socialism and followers of Karl Marx (1848) demonstrate correctly and quite nicely that (1) socialism is theoretically sound; (2) socialism is capable of gaining and retaining public support, and from a very large number of people; however, (3) socialism does not work!  When an economic theory is proven unworkable time and time and time again what is one doing when one pretends it will work next time? 


Followers of Marx realize socialism has never worked but argue socialist failure is caused only because the wrong people were in charge at the time saying, in effect:  “When I am in complete charge I will make it work because I am smarter than them, smarter than you.” Being “smarter” is proven incorrect each time socialism is tried.  To date no one anywhere has made socialism work long term; yet, the desire to try and try again and again never abates.  The most glaring example of this truism in relatively recent years might be the former USSR (United Socialist States Republic).   It took seventy-two (72) years or thereabouts for USSR socialism to collapse, but it did collapse. Socialism can be made to work in large industrial states (Russia, China) in the shortest of the short run but then only with major help from a rifle butt and bayonet. 


Fascism, promoted in the USA by the Propaganda Press, implemented heavily through abuse of mutual funds and government pension funds, works like this:  All government employees at the federal, state and local level are required as a condition of continued employment to enroll in one or more government pension plan, totally immune from Social Security financial obligations.  The pension plan invests in such things as corporate and/or government bonds and common equity (common stock).  No employee is entitled to know the company in which the shares of equity are purchased with his money.  Each employee incurs one hundred percent (100%) of financial risk of the equity rising or falling in price and one hundred percent (100%) of the risk associated with dividends being paid or not.  Government retains control over the company and holds the equity, presumably in trust for the government employee.  Other government employees vote the most important part of the employee’s equity – the end of year proxy.  When combined with unnecessary licensure and government contract specifications, government takes total control of a company such as General Motors (GM), CitiGroup, Chrysler Corporation, and so on.  There are many, many more!


The USA is a Benito Mussolini style fascist economy as we speak! Social Security in America is a socialist operation, owned and operated by our federal government.  Social Security Administration facts and figures reveal Social Security to be a highly productive source of cash inflow and major profitability center for our government; however, specificity with respect to precise volume of revenue inflows to government is not available.  Only cash outflows are reported with vigor. 


Our Social Security Administration statistical research office produces a “Monthly Statistical Snapshot,” February, 2013 revealing how much money was spent by Social Security in West Virginia, for example; it fails to and refuses to provide a report revealing how much money it collected from workers in West Virginia during the same time frame.  Social Security payments paid by Social Security into West Virginia by date of payment, by age, sex, race and other demographic categories are reported. For Supplemental Security Income (SSI) recipients, government fails to report SSI payments received from Social Security by persons in the State of West Virginia by age, race, and other demographics - or any other state. 


No mention whatever exists in government reports or any reports concerning money collected over the years from workers in West Virginia.  No report is available revealing the amount of money collected by government over time for Social Security, by age, sex, race and demographic categories similar to cash outflows. Cash inflows to government are never matched with cash outflows from government, by state, by category.  How is one to see, to calculate, to quantify, to compare and report the dollar value of receipts from workers relative to payments to workers.  What is known is this:  Cash inflows from workers in WV to Social Security exceed cash outflows from Social Security to WV workers. 


Comparative data is unavailable for the state of West Virginia and for the nation as a whole.  If a financial economist has only Social Security expenditure data at hand, no Social Security revenue data at hand, how in good conscience do government economists subtract one from the other and claim a deficit in Social Security?   How did Obama/Soetoro do it?


On Wednesday, April 24, 2013 Social Security Administrators had this to say in an email to the author:  “We do not compile data in the form suggested in your questions.  We do publish data on the entitled to receive Social Security benefits population.”   People “entitled” to receive Social Security money and how much they received from a benevolent government is available; how much money collected by government from that same work force is unavailable.  How, then, does a scholar in China or elsewhere, or members of our Propaganda Press reduce to writing and publish statements ‘proving’ our Social Security system is incapable of meeting financial commitments.  How does our president, our Senator, our House of Representative member know we might be unable to pay our senior citizens what is owed them in their nominal monthly Social Security check? 


This information in April, 2013 comes during the same time frame as President Obama’s pronouncements that Social Security checks may have to be reduced until and unless he gets his way on budget talks with the Republican Party.  This is fear created intentionally:  Threats, political rhetoric, “bullying,” is business as usual for professional politicians.  This presidential conduct is irresponsible verbiage and causes/creates another crisis for older voters, causing the lowest of low income persons to fear for their livelihoods, to fear for their survival. 


The Statistics/Research arm of our Social Security offices were asked for two pieces of additional data as follows:  (1) “Huge numbers of people collect social security disability and Supplemental Security Income without having paid any money into Social Security; how many people receive such payments and how much money have they received?  I would like the information annually for as many years as you are able to provide; and, (2) How many people paid into Social Security during their working lifetimes and died before they could collect anything at all, for as many years as you are able to provide?  (The $100 or $200 death benefit, or similar, need not be included).” 


This second question is of critical importance because the law of large numbers proves mandated social security payments to government serve as a large profit center for government.  Many uncounted millions of workers paid into the Social Security Trust Fund but died before receiving a penny in return.  Government kept and keeps their money.  The excess is economic profit to government.  How many people died before being able to collect and how much money did the government keep is the question?  No answer.  Those records are unavailable.[22]




We must amend the Social Security Act.  In amendment, retirement benefits shall be removed, totally separated from Disability and Supplemental Security Income payments.  The Social Security Act shall as amended shall specify government employees are required only to administer a retirement plan for each individual worker choosing to assume responsibility for his/her retirement.  Government shall be confined to assurance that specified routine payments into and out of the plan/fund disallow fraudulent withdrawals or contributions.  Legitimate transfers of retirement funds from one investment adviser to another shall be properly protected.  Government shall establish and patrol (only) a reliable retirement/survival plan/fund without making any of the investment decisions.  Someone other than a government employee shall make all buy, sell, hold or trade decisions for common equity, bonds, real estate and other real and/or financial assets.  Should any worker die before he reaches retirement age of 62 or 66, or a uniformly agreed upon retirement age, unused money accumulated by him/her shall belong to the estate of the deceased.  No deceased person’s money shall be absorbed into government or other coffers.[23]  All retirement money accumulated shall be identified as the workers private property; competition from financial intermediaries shall be  required with each investment adviser being required to diligently attempt to generate profit for each worker consistent with the degree of risk acceptable to the worker – as done in ALL other retirement plans in the USA.


Any worker preferring to remain with the existing, un-amended Social Security plan may do so.


No Supplemental Security payments and no Disability payments shall exceed the dollar amount of the average Social Security payments made to workers who have paid into Social Security.  Standard deviation statistics associated with average payments shall not be considered in fulfilling this requirement.


No government employee shall vote common equity proxies for any person remaining in the existing Social Security plan; no government employee shall vote common equity proxies for any person choosing responsibility for his/her retirement; additionally, no government employee shall have any influence whatsoever in selection and/or election of management personnel at any level of any publicly traded business.  No government employee shall have any influence whatsoever in deciding any policy or procedure of any publicly traded business.


This Social Security Act adjustment is a (1) theoretically sound, (2) technically correct, workable, proposal; moreover, (3) it is capable of gaining and maintaining public support.  Implementation of this better plan eliminates a professional politician self-serving profit center, one managed by and for government.  Big government is big business!  U.S. Senators and U.S. House of Representative members would have to vote this improved, workable idea into law, and get it signed by the president thereby depriving these same government persons access to a major source of cash flow, and voter control. 


Honest persons, ones of integrity and ethical behavior, of high character in the White House, the House of Representatives and the U.S. Senate are needed to implement this improvement.  We must have the right people in elected public office to achieve this necessary and sufficient goal.  Currently we have entrusted our affairs of state to all the wrong people,




Look what government is doing for you is the Social Security message in its routine publications.  No recognition of what government is doing to you is published.  Meanwhile, excessive spending and taxation, and issuance of threats concerning alleged necessary reductions in cash flow to senior citizens continue.  Congress spends Social Security money received from American workers, in part, on legal and illegal immigrants, persons who have never paid into Social Security in their lives, but ones who are expected to vote in favor of keeping politicians in office once they arrive in the states and possess proper citizen credentials.  We are a great nation.[24]  We do not need this kind of behavior.


Using news media propaganda, combined with excessive spending on non-social security projects for persons who have never paid into Social Security, our federal government causes citizens and foreigners alike to believe future Social Security payments are in serious financial jeopardy, that our Social Security system is something considerably less than financially secure.  A program is financially secure when revenues exceed expenses, when a program is guaranteed to exceed expenses by a wide margin, when it is supported totally and completely with money from the General Fund of the United States of America, the case with existing and future U.S. Social Security payments.


Did our president mislead us intentionally with his comments in April, 2013 or was he simply confused when he sent word to each of our fifty-seven (57)[25] states claiming the U.S. government may not be able to pay social security benefits in the future as it has paid in the past?


Every year since date of creation of our Social Security program, 1935, the money paid into Social Security by American workers has exceeded the amount of monetary payments made in retirement to American workers.  This statement remains true for 2013.  With ease Social Security payments are able to be made in full and on time as long as the USA remains a sovereign nation.  The president made his claim primarily for purposes of voter control.    People control.  He wants additional political control.  The president feels the need to control everyone and everything that moves.


Social Security as made available in the United States is a socialist idea and practice.  Since 1935 Social Security has been used to control people by making them financially dependent on government.  Many independent Americans dislike the program as administered currently and complain that changes are in order.  Financial support to truly needy older persons is not only acceptable but highly desirable; however, many persons realize the current system harms the very people allegedly it is designed to help.  How to privatize or otherwise change the system has become the legitimate question of the day in return for which we are faced with fear being created by false threatening utterances. 


Creation of fear appears as governmental response to requested and necessary changes in the Social Security Act.  Creating fear in the hearts and minds of senior citizens in West Virginia and throughout the nation has resulted.  People who rely totally upon monthly payments from government in order to survive financially are threatened.  FEAR HAS BEEN CHOSEN AS GOVERNMENT’S WEAPON OF CHOICE!   


“In 2009, the cumulative excess of Social Security taxes and interest received by government in excess of benefits paid-out stood at $2.2 trillion.”[26]


 In the United States of America, 2009, revenues generated by Social Security exceeded expenses paid by Social Security, cumulatively, by +$2,200,000,000,000.00 (rounded).   If any financial economist believes this number to be negative and revenues exceeded expenses, put up your hand![27]  Obama/Soetoro was elected president in 2008 and again in 2013.   How is it that he is it he knows nothing of this money, of this huge financial surplus?  Or does he?


Jason J. Fichtner, former deputy Social Security administrator during the Bush administration declared in 2013 that Social Security holds $2.6 trillion in special-issue Treasury notes, part of the $14.3 trillion debt amassed by the U.S. government.[28]


From 1935, the date of inception of Social Security in the United States of America until and including 2013, our federal government has generated revenues far in excess of benefits paid.  The USA Social Security Trust Fund exists and is totally financially covered by revenues from the General Fund of the United States of America, financially supported by the overall income to the USA’s federal government; all benefits are paid as and if and when necessary from the USA’s General Fund.  To allege the necessity of missing monthly payments to Social Security recipients political persons would be required to make a deliberate and highly conscious decision to give senior citizens a lower priority for payment than things such as Vice President’s $400,000 per night hotel costs and/or the President’s numerous and routine multimillion dollar vacations.  The point here is this:  Payment or refusal to pay mandated Social Security recipients is NOT a financial decision; it is a totally political strategy decision.[29]


Persons unfamiliar with the American English [30] language need a definition for the word:  Whopper.  A ‘whopper’ is an uncommonly large untruth, a huge lie, an incredible intentional misstatement.  This definition is necessary because ‘whopper’ in recent discussions with former presidential candidate Mitch Romney, it is said our President made outright false statements with respect to Social Security.[31]   Why, is the question?   


Why would a president of the United States mislead taxpayers about their entitlement checks?  Why fool the people who elected you if not to create fear, to use fear as a tool?  Fear may be used to destroy an existing economic system; after all, destruction is a necessary and sufficient condition needed to create a new economic system, precisely as explained in his major work, Mein Kampf, by Adolf Hitler.  Hitler knew no one can create a new economy until the old economy is destroyed.  To create a socialist economy the capitalist economy must be destroyed.  Socialist political persons and their financial backers in the USA know it as well.


The recent and continuing Health Care debate (argument) in the USA has little or nothing to do with health care.  It has to do with control of people, with government using built-in citizen fear of cancer, heart attack, stroke and innumerable other medical problems as a major control tool.  Our health care law was signed into place without anyone in the United States including our Senators, House of Representatives and the President so much as seeing the document; in fact, the law was not written until AFTER it was signed into law.  It was and is a continuing effort to control people through use of fear both now, 2013, and for generations to come. 


Gun control debates in the USA are similar in that they have nothing whatever to do with control of guns or gun safety.  The USA government effort to confiscate all guns has to do with creating fear of guns.  Fear is the control mechanism.  Gun control efforts are people control efforts.  Fear of guns within the country at this time is bogus; however, the Japanese had a legitimate fear at Pearl Harbor on December 7, 1941.  The Japanese knew not to continue to the USA’s west coast in an attack on San Francisco and our homeland for fear of average U.S. citizens – each very well armed and with total knowledge concerning how to use and care for guns.  Americans have the right to bear arms; moreover, they know how to use them!


People are easier to control when they have no guns!  The Poles in Poland would have responded to Hitler’s attack on September 1, 1939 differently and more successfully and with less bloodshed throughout the world had Poles not been required to surrender their guns prior to the attack. 


Immigration control debates have nothing to do with allowing a Mexican citizen into a USA field to pick a head of lettuce.  Fear of foreigners is the idea.  Adolf Hitler used and created fear of Jews in the German population for the same reason:  control of the German population.  It worked.  Ninety-nine percent of the German population is said to have supported Hitler until his fall at which time 99% said they had hated him all along!  Notice how control of people, using fear as a tool for control purposes, works.  Please notice as well the resulting devastating long term impact on society.[32]   


The cowardly attack by Muslim Extremists during the Boston Marathon, April, 2013, was taken full advantage of by the American government as American civilians were ordered, illegally and immorally, to remain in their homes until government told them they may come out, stay inside until government claimed it was safe to come out.  Fear of foreigners; fear of government resulted.  No thinking American doubted the persons who attacked and killed innocent persons were young Muslim extremist soldiers and would be caught.  Government said later it had “captured” the wrongdoers, but as it happened government forces did not capture the one (1) injured and badly wounded soldier laying in an unused boat slowly bleeding to death - in a citizen’s back yard.  The owner of the house found him and called the police – precisely what Americans do.


“We have nothing to fear but fear itself” proclaimed U.S. President Franklin D. Roosevelt in 1933, using words provided to him by financial economist, the late John Maynard Keynes (d.1946) in an open letter to the New York Times, January 31, 1933.[33]


In his major work, his General Theory,[34] Keynes said, in part:


“. . . the ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood.  Indeed the world is ruled by little else.  Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist.  Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.  I am sure that the power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas. . . .”


When our president said he might not be able to pay senior citizens their meager monthly Social Security checks he was causing absolute, total fear into and creating additional control over our total population, of all races, creeds, and age groups.  Our Black population in particular became more fearful than ever of government.  Approximately 33% of Black senior citizens over age 65 rely 100% upon their government Social Security checks to pay property taxes, to pay their heat, light, gas, food and other monthly necessities.[35] 


Where do Black Americans go for financial help when government with its first ever Black President turns its back on them by threatening to reduce their Social Security checks?  Blacks, on average, have no financial back-up!  FEAR of losing one’s house, food and meager life style is the result of such an incorrect and unnecessary presidential threat.  What one sees here is control of the population working nicely for socialists seeking additional government control(s) but with no concern whatever about who gets harmed financially and how badly they are hurt.[36]


Unfounded and unnecessary fears created concerning “Global Warming” fit nicely into this same socialist strategy:  it is another control device designed and created to gain and maintain control over people - at any cost.  Al Gore, Nobel Prize winner and former U.S. Vice President said time and again:  “We shall control everyone and everything that moves.”  Control over people is THE reason for claiming Social Security is out of money with which to pay Senior citizens in the United States of America.  The presidential threat concerning delays and or decreases in Social Security payments is another tool, one more tool designed to create fear, to encourage people to run to government for protection, the same government that threatens them.   


The climate has been changing in the USA and around the world for hundreds of thousands of years before any of us heard anything about climate change, and we know we did not create climate change and we cannot alter it.  Undereducated/uneducated people however can be trained, brainwashed to say differently – also something we know.


Every household in the United States of America is controlled by political rent, a major people control device and one almost never discussed.  This people control tool works through real estate taxes, taxes paid on residential real estate.  It is a rent (tax) from which there is no escape, a rent (tax) over which no taxpayer has any control.  Rent a house or apartment and political rent is included in the monthly payment to the landlord.  Buy a house and manage to pay for it in full over a 20 or 30 year period of time and political rent continues as taxes paid to government, the absentee landowner.  This process allows professional politicians to exercise a continued financial interest in and control over private residential property.  The so-called “owner” of private residential property pays more in taxes to government than he paid initially to the contractor to build the house, and s/he is driven from his/her home in the process.  Property taxes not paid in full and on time make the residence subject to government foreclosure.


Political rent constitutes permanent seizure of private property by local government.  Political rent is unconstitutional!  The Supreme Court of Ohio has ruled on more than three separate occasions that tax on residential real estate for use in public school education is unconstitutional, for example, but life-long professional politicians, with impunity, ignore The Ohio Supreme Court.  Real estate taxes in Ohio are collected anyway.  Government needs (wants) the money, it says. 


“No government or governmental unit shall impose a tax of any sort on the primary residential property of any citizen in the USA.”   This language is needed as an Amendment to the United States Constitution.  Mutual fund management is another successful government control device.


People are encouraged by a government mandated tax code to enter into tax-sheltered retirement plans, allegedly for growth of personal finances.  Households contribute part of their earnings to one or more mutual fund, but mutual funds are NOT insured by the Federal Deposit Insurance Company (FDIC, 1934), or by any other government agency.


Mutual funds are owned and operated by insurance companies but no insurance company owned mutual fund is guaranteed by any agency of any government anywhere.  Persons buying equities (common stock) through mutual funds take total risk of the stock price rising or falling or dividends being paid or not but the most important element in stock ownership is the right to vote for management of your firm, to vote for the Chief Executive Officer and other key employees.  As previously discussed herein concerning government pension fund management, the insurance company is equally intrusive of private property rights as it also is a holder of stock and votes your proxy as though it was the owner.  Each firm’s management thereby directs employment, output and income for each firm in which stock is held.  The “investor” in mutual funds turns over to government and insurance company persons total control of his/her proxy!  Most such investors do not know it.  When one buys his/her stocks one at a time s/he has a much better chance to control the company by personally voting his/her proxies, or by hiring someone trustworthy to him/her to vote on his/her behalf!




A presidential misstatement of fact concerning Social Security of such magnitude causes fear in the minds and hearts of people accustomed to living at or near the poverty level in Ohio, Indiana, West Virginia, Pennsylvania, Kentucky, Michigan and elsewhere, in most if not all of our fifty-seven (57) states in this country.[37]  If our president threatens, seriously talks about discontinuing even so much as one Social Security payment, even $1,000 per month many households may be unable to survive, unable to pay property taxes on their homes.  Such people will become homeless, increasingly dependent upon the federal government.  Non-payment of real estate taxes may lead to eviction and sale of residential property by the local Sheriff at which point what does a senior citizen do, especially a Black senior citizen in West Virginia, Georgia, Mississippi, Louisiana, Alabama and elsewhere?


Throughout the country fear has been successfully created by socialist government falsehoods.  Not only fear by the elderly but fear by their children.   People in their forties and fifties, most definitely in West Virginia, but throughout the nation as well, concern themselves with their parents, some of whom are in their 70’s, 80’s and 90’s.  If government continues to pursue totally unnecessary policies and procedures and/or continues to threaten loss of income necessary for very survival, for livelihood of senior citizens leading to eviction from homes for these elderly persons, where do their parents go, ask children of these parents.    How do they live and buy food and other necessities when they get there?  Do their 70-80 year old parents go to the homes of their adult children, adult children struggling to meet their own property taxes and city, state and national income and sales taxes?  In many if not most cases, these 50 year olds are struggling to help their own children with tuition and real estate taxes and school-related expenses and . . . ?  Uncommonly large numbers of U.S. Military veterans are broke financially and homeless because they fear the government for which they fought, and for which many of their friends died.


Retention of an unemployment rate at or near eight percent (8%) is desired by Obama government; in fact 8.5% may be his preferred new national goal.  This high an unemployment rate assures, almost guarantees large numbers of healthy Americans will be out of the work force and seeking unemployment checks.  These unemployed people are controllable by professional politicians only so long as the unemployed need unemployment compensation to survive.  Unemployment under a socialist economic system in the USA is a planned event and designed to control votes in every election.  Without Social Security checks unemployed families starve, evidence again of the control goal; the same condition exists for non-retired workers.


USA Presidential (2012-2013) statements claiming, wrongly, Social Security payments may be delayed include but most definitely are not limited to the following:  “Can President Obama keep paying Social Security benefits. . . “, . .; “Social Security Checks Could Be Delayed Without Debt-Ceiling”, . ., plus, an additional fifteen (15) similar references from ABC News alone; Social Security;; Politifact; npr; reuters; and similar – for an innumerable number of similar if not identical references. [38]


Ben Bernanke, Chairman of the Federal Reserve System, supporting socialist goals by announcing, wrongly, over and again many times that keeping interest rates in the USA at or near zero until investment increases, would cause the unemployment rate in the USA to lower itself to 6.5%, or lower.  Nations throughout the world have followed the Bernanke lead.  Internationally, interest rates were lowered within each nation claiming lower interest rates would spur borrowing from banks for investment purposes and, therefore, employment would rise.  Meanwhile, commercial banks throughout the world are told by governments they are too slow in making loans to businesses. 


Until banking learns to make more loans, governments throughout the world claim wrongly, the interest rate is and shall have to remain low.  Control of banks and banking is the goal of this incorrect rhetoric, of course, but the procedure does not work, has not worked anywhere on the planet, and will not work now.  Investment is unaffected by reduction of the interest rate.  It is “the” big lie to think and/or act otherwise.  The interest rate does not cause investment to increase with subsequent increases in employment (decreases in unemployment) output and income and income taxes.  Investment is not a function of the interest rate.  As explained by Keynes the “marginal efficiency of capital” causes investment to occur, employment increases come later.  A low interest rate does not cause investment to increase! 


It matters not how high or low the interest rate goes provided the marginal efficiency of capital exceeds that number.  If Bernanke’s interest rate were 10%, for example, and the marginal efficiency of capital were higher than 10%, say 15 or 20 percent, investment would expand and banks would be lending money to private enterprise.  Immediately following the increase in investment would be a healthy increase in employment, output and income, and income taxes, with large simultaneous decreases in unemployment and with corresponding decreases, less reliance, on maintaining the flow of government unemployment checks.  Government control over the work force would be less.


Socialist politicians consider themselves to be “Keynesians,” meaning they are followers of the economic theories of John Maynard Keynes; however, it appears they have failed to read his book or, perhaps, have read the book but lack any understanding of economic theory and/or practice contained therein.[39]


If socialists knew more about the economy and how it works, a subject not taught in a meaningful way in our elementary, high schools or colleges/universities, they would understand that increases in investment occur only when the marginal efficiency of capital is higher than the interest rate; moreover, with investment increases higher levels of employment follow immediately, followed by increases in consumption.  When consumption increases, approximately sixty-seven percent (67%) of Gross National Product, income taxes at the federal, state and local level rise.    Yes, always!  Socialists claim constantly of a dire need for higher and higher taxes but they pursue a policy guaranteed instead to produce higher unemployment rates.  Higher than normal unemployment is the goal, thereby providing an opportunity to control more people!


Normal unemployment statistics reveal a transitional work force in the USA associated with about 3/5% – 4/5 % unemployment.  Six percent is unacceptable; yet, Supporters of socialist thought in the USA seek a new “normal,” 8.5%.  If successful this new level of non-productive persons guarantees an approximate 8.5% advantage in every election.  Socialists behave in this manner in order to keep workers dependent upon government, beholding to government professional politicians who vote again and again to increase minimum wage levels, to increase unemployment benefits, to open the borders to the widest extent possible, bringing more people into the economic system thereby assuring the unemployment rate is and shall remain high.  The only idea of importance to socialist government politicians is control of everything and everyone that moves.  Professional politicians need the votes of these dependent persons in order to gain and maintain power.  These politicians do whatever it takes to obtain votes.[40] 


Of importance to socialists is control of the work force by keeping people dependent upon government for survival.  Any threat causing fear in the minds of a controlled and formerly free population fits nicely into this political effort. 


Absolute power corrupts absolutely we know; yet, Americans of late have tolerated absolute power to adversely affect their lives, and the lives of their children and of their grandchildren by allowing government to creep slowly and steadily into their daily lives:  “political correctness” is the control device used.  Political correctness is creepy and totally incorrect! 


Every American family can relate to this story:  “I went to my grandson’s fourth graders special meeting today honoring him as “the best student in his class.”  I was shocked, impressed, unbelieving.  It was a normal work day for me.  My grandson attends a Catholic grade school of about four hundred students.   His mother and dad struggle to meet the tuition payments but think anything is better than public school.  The fourth grade at his school contains three classrooms of about 22 fourth grade students in each class and teachers are publicly presenting a document proclaiming him to be “the best fourth grade” boy?   I skipped work to get there early and had trouble finding a seat among the 3,000 available at church where the ceremony was held.  A “best” girl student award was being presented for each class at the same ceremony.  I walked out of church in total disgust after the fourth grade boy award was presented.  Each boy in the fourth grade, approximately thirty-three (33) kids, received the “best boy” award.  To single-out one boy would be discriminatory to all other boys, I was told when I inquired; to give one boy a prestigious award and not all the other boys  might harm the self-esteem of other boys.  It is politically incorrect to single out a winner as it emotionally hurts well-deserving losers, and blah, blah, blah![41]     


When the president says revenue might not be available to pay mandated Social Security income to senior citizens he is locking-in the senior vote.  Seniors are led to believe he can be counted upon to step-up later proclaiming, as president, he will not allow Congress to mistreat his senior citizens in this manner; he will claim to see to it and he might issue an Executive Order prohibiting it?  This kind of political maneuver gives the president the control he wants and the control he needs over people who want things from government. 


Threats create fear.  Fearful people are vulnerable and therefore easily controllable.  Threaten the old with potential loss of life through “death squads” associated with our new HealthCare, and threaten them again with potential loss of income and freedom associated with reduced or eliminated Social Security payments and it becomes easier to lock-in their votes; threaten the young with loss of student loans needed to attend government owned and operated universities and/or loss of forgiveness for those loans if they vote incorrectly; threaten the middle class work force with loss of unemployment checks while manipulating the Federal Reserve System’s Chairman to work hard to keep unemployed persons unemployed; threaten illegal aliens with deportation by threatening to enforce existing immigration laws against violation of well-known national borders; vote the proxies of mutual funds managed by government pension plans, funds bought and belonging to workers, in favor of Board of Director memberships only to government-friendly persons and government policy positions; threaten not to issue government contracts and not to issue necessary licenses  to persons not understanding their need to continue to support big government. 


Threaten to cancel licenses and contracts to all others; and, one begins to get the overall picture, the overall goal to control, one begins to understand our socialist government.  To complete an understanding look at what has been done to our money supply:  ;  , and  is being significantly reduced in quality, being rapidly expanded in quantity resulting in significant decreases in value.  An important comment on banking is needed here.     


One government procedure while dealing with alleged insufficient financial cash flow(s) to Social Security is continued implementation of its overall socialist game plan while pretending government is conducting business as usual; however, socialist strategists know more is needed and they are ready. 


Banking is THE most important industry in every economy, capitalist, socialist or communist.  Quite simply no economy moves forward without efficient banking.  The first official act of business by Franklin D. Roosevelt, for example, when he was elected president of the USA in 1933 was to close all banks in the country only to open them again a week or so later.  The bank closings let people know who was in financial control.  A first official act of business for Adolph Hitler in 1933 after being elected Chancellor of Germany was to take government control over every bank in Germany.   


The Gramm-Leach-Bliley Act (GLBA) signed into law in 1999 by President Bill Clinton was the trigger designed to cause the current world-wide planned financial collapse.  Socialists learned from Adolf Hitler one must kill the existing economic system before a new one can be introduced and be successful.  GLBA was designed to kill the banking system in the USA and throughout the world, while proclaiming protection of banks was the goal.  It is working. 


After the Great Depression, 1929 – 1933 the U.S. Congress passed the Glass-Steagall Act (GSA) in 1934.  GSA required financial intermediaries to compete with one another or go out of business.  No financial intermediary was considered too big to fail.  Insurance companies could not enter commercial banking and commercial banking was required to be separate from investment banking, Wall Street firms.  A Savings and Loan industry came into existence primarily to finance mortgages in residential real estate, only to be phased-out at great financial benefit to themselves by Senators Glenn (D-Ohio) and others, the so-called “Keating Five.” 


GSA provided almost complete stability to our financial system, and therefore to the world, for the better part of seventy-two (72) years.  With as little notice as possible, with almost no announcement from our Propaganda Press and/or socialist politicians, GLBA was passed by Congress and signed into law by Bill Clinton.  Everything associated with GLBA was kept as quiet as possible.  Almost no financial economist said anything.  Professional life-long U.S. Senators and House member career politicians knew and said nothing.  GLBA entirely cancelled GSA thereby cancelling competition between and among financial intermediaries.  The rest is history.  Financial disaster with no end in sight resulted.  This financial disaster continues in 2013, as a direct result of GLBA. 


We have entrusted the affairs of state to all the wrong people but an Amendment to the Constitution would improve the situation:  “The term in elected public office shall not exceed a total of twelve years (2 terms) for a U.S. senator; the term in elected public office shall not exceed a total of twelve years (6 terms) for a U.S. House of Representative member.”


The laws passed by life-long politicians often are corrupt, criminal in many cases, such as sneaky, creepy ways to foreclose on one’s private residential property through political rent.  But remember:  The purpose of every law passed is to exempt persons friendly to professional politicians from that law.  The very first thing done by members of the U.S. Senate and U.S. House is to exempt Senate and House members from the law being passed.  Most laws on our books are NEVER enforced.  We see truth of favoritism in action when we learn residents of Detroit favorable to certain politicians in Michigan do not pay their private residential property taxes.  City of Detroit politicians have agreed to forget real estate property tax payments resulting with no property taxes being paid.   Additional corruption – but business as usual for life-long politicians!


A final point:  The author has a Social Security card containing his name, number and promising him privacy.  It says:  “FOR SOCIAL SECURITY PURPOSES – NOT FOR IDENTIFICATION;” yet, today all government and all financial intermediaries require that social security number for identification.  The Internal Revenue Service demands it.  Does our president have a social security number containing his name and does his card have a number issued to him for identification?  We may learn one day of another “whopper?”





            The 10% of income saved and the 6% annual interest earned on savings assumed in this paper for wealthy and less than wealthy citizens, in West Virginia and elsewhere, is less than the 12.4% Social Security tax in place in 2013 – and it generates significantly more income for the citizen worker, and it allows significant estate value to be transferred to his/her family and friends due to premature death.  Current Social Security scams do neither; regardless, Social Security payments today are financially secure.  We shall amend the Social Security Act!


When the United States of America sneezes financially, the world catches pneumonia.  It is acceptable to sneeze if you cover your mouth and nose.  No responsible person sneezes on purpose; however, the sneeze that served as primary trigger for our current international financial disaster, a sneeze designed to increase socialist control of all people throughout the world and at all costs, a sneeze designed to gain and maintain control of all places and all things throughout the world, to control everyone and everything that moves was intentional.  That sneeze is identified in this paper:  the USA’s “Gramm-Leach-Bliley ACT” (GLBA) signed into law by President Bill Clinton, November 21, 1999.[42] 


Freedom is not free; Voters need to see.        





©    |    April, 2013

[1] Social Security’s Investment Shortfall:  $8 Trillion Plus – and The Way Forward.  Nils H. Hakansson, World Scientific Series in Finance:  Volume 3.

[2] Social Security Online, Office of the Chief Actuary,, p.1.

[3] ______,, p.2.

[4] Average Income per Person in West Virginia by Zip Code,, U.S. Census Data 2010.

[5] The U.S. Congress arbitrarily canceled RRA pensions on or about calendar year(s) 1956/1957 allegedly placing the money into Social Security; however, Government spent RRA money of every rail worker on its social programs.  This retirement money had been due legally and contractually to each railroad worker.  The Railroad Retirement Act of 1937 (RRA) was carefully amended again in 2001.  The author’s pension was covered by RRA retirement money when he worked as Brakeman for the B&O.  He received nothing from RRA when he retired.  

[6] Thomas J. Coyne, Managerial Economics: Analysis and Cases, Fifth Edition, Business Publications, Inc., Plano, Texas, 1984, p. 683.   

[7] “What is the Maximum Full Retirement Benefit that Someone Can Receive” – AARP, 

[8] E. J. Jarrett, Press Office, Social Security Administration, phone conversations(s) and email(s) with author; however, one may approach Freedom of Information Act (FOIA) at Social Security and for a fee and time delay partial data may be made available.

[9] 2010 Social Security Trustees Report, p. 2,

[10] With the possible exception of Alaska, West Virginia may be the richest state in the USA with its water, coal, gas, oil, timber and other mineral resources; also, of course its people are highly intelligent but provided with less than adequate public school education. Government control of West Virginians has been in the hands of the same people and interest groups for at least the past 90 years.  In ‘real’ terms (adjusted for inflation) WV gets poorer each year.

[11] U.S. Census 2010 reports the highest average income per person in West Virginia to be among the 29 persons (twenty-nine) living in Milam, West Virginia, $33,100.00; the lowest average income per person in West Virginia, those 89 persons persons living in Big Sandy, WV having $1,901.66 average annual income.  Two counties in WV report no income (zero); persons living in Shock and Sarah Ann.  Charleston, WV (state Capitol):  about $26,000.

[12] “Death Squads” have become part of the common body of knowledge in the USA since the Sarah Palin run for Vice President of the USA.

[13] Coyne, loc.cit.

[14] Too numerous to mention.  See USA mortality tables by age and race nationally.

[15] Freedom of Information Act (FOIA) - Social Security, http://social, p.1

[16] Charles Dharapak/AP, cited as

[17] The Federal Income Tax, IRS, works in a similar manner and for the same purpose.  Income tax revenue is not the goal.  Control is the goal.  The money collected is irrelevant when over 50% of all persons pay no income tax.  The USA existed nicely until approximately World War II with no serious meaningful federal income tax. 

[18] Current president of the United States of America, Barack Hussein Obama II, was known for approximately 22 of his 52 years on earth as Barry Soetoro of Jakarta, Indonesia.  Google “Barry Soetoro statute,” Jakarta, Indonesia,”

[19] Social Security Bulletin, Volume 62, No. 2, 1999, p.60.

[20] Paul Johnson, (Edited by Michael Walsh), The Papacy, First published by George Weidenfeld & Nicolson Ltd., London, p. 198.  Also in 1929 Italian dictator Benito Mussolini signed the “Lateran Pact” in part granting 109 acres of land in Rome to the Catholic Church for ‘Vatican City.’   

[21] John Cornwell, Hitler’s Pope, (Eugene Pacelli known also as Pope Pius XII), Viking Press, USA, 1939.  During World War II Pope Pius XII chose not use Catholic Church doctrine and teachings publicly to influence Italian and/or German fighting men.  See as well numerous Benito Mussolini Biographies. 


[22] The author’s dad paid into Social Security from 1936 until his death in 1963 without ever collecting a penny from Social Security; the author’s brother paid into Social Security from approximately 1948 until his death in 1992 without ever collecting a penny from Social Security.

[23] The plan suggested here differs sharply, almost totally from similar proposals made during the President George W. Bush administration, proposals intended at the time to curb excessive spending problems built into current Social Security policies and procedures.  Also, the Bush administration time frame literature and news media pronouncements resulted in the TIAA-CREF Insurance Company, NY, NY being suggested as a firm capable of assuming Social Security Administration duties.  Personal knowledge, background and heavy experience by the author of inner workings at TIAA-CREF over a prolonged period of time strongly support total rejection of TIAA-CREF as a likely investment advisor or as an acceptable administrator in any investment capacity.      

[24] Tony Blair, Former Prime Minister, Great Britain said the measure of a great nation may be taken by comparing the number of people trying to break into the country relative to the number of people trying to break out.

[25] The USA has fifty (50) states; pun intended.

[26] http.//, p.7; also, “The 2009 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds,” Social Security Administration, May, 2009, retrieved June 27, 2010.

[27] Requests submitted by the author for West Virginia and the nation as a whole matching revenue inflows with financial expenditures to recipients by age, race and county” are reported unavailable by Social Security. 

[28], downloaded 4/18/2013.

[29] Always look for the real reason behind governmental pronouncements; and, (30).American English must be adopted as our “official” government language in the USA.  A Constitutional Amendment is necessary!

[30] American English must be adopted as the “official language” of the United States of America.

[31] Obama’s Social Security Whopper, downloaded April 18, 2013.

[32] Americans need freedom; God created all men to be free.

[33] John Maynard Keynes, Letter to the Editor, the New York Times, January 31, 1933.

[34] John Maynard Keynes, The General Theory of Employment, Interest and Money, First Harvest/Harcourt, Inc., 1964 edition, p. 383.

[35] Social Security Bulletin, Volume 62, No. 2, 1999, p.60.

[36] ______,  33 percent of blacks and 33 percent of Hispanics, compared with only 16 percent of whites over ages 65 rely totally upon Social Security payments to live.

[37] Pun intended.  The United States of American has fifty (50) independent states, not 57 as announced by presidential candidate Barack Hussein Obama II/Barry Soetoro as he announced his plan to visit each of our 57 states – part of socialist plans to take over America. 

[38] Ask Google: “Cite President Obama statements saying why Social Security benefits may have to be cut”.  Scholars interested in the incredible number of reference items must do the same.  No need exists here to cite over and again the common knowledge of the Presidential ‘whopper’ revealing, wrongly, how Social Security is financially in distress and/or unable to pay.

[39] Thomas Coyne.  Toward a Managed Economy? The Kentonian, May 11, 1966, p. 2.

[40] Thomas J. Coyne.  Notable and Quotable,” The Wall Street Journal, July 29, 1966.

[41] Attendance later at a third grade girls basketball game resulted in my learning it is politically incorrect to keep score during the game because one team always loses when you keep score, thereby making the game unequal.  Equality is the goal.  Total control over the minds and bodies of youth is the goal and it begins early in their lives and “creeps” up on them until, as adults, they consider government controls to be normal.  Personal freedom suffers mightily.  Control is the goal!

[42] Thomas J. Coyne, AutobiographicalSketch.htm., Graham-Leach-Bliley and Glass Steagall, Commentaries of October 13, and 20, 2003,