Let's see. Here is a discussion as to how the US Social Security
funds are 'invested' in US Treasury bonds.
Guess what.
There is a protocol established in kindler and gentler times
that will now screw the returns on the Social Security funds
until 2017!
Check the attached file or open the article link to learn from this.

    How Ben Bernanke is orchestrating the death of Social Security
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    Thursday, July 05, 2012

    From Bruce Krasting:

    In June of each year, the Social Security Trust Fund (SSTF) reinvests a significant portion of its
    investment portfolio in newly issued Special Issue Treasury Securities. The interest rates on these
    bonds is set by a formula that was established in 1960. The formula was designed to insulate the
    SSTF from transitory changes in interest rates by averaging market-based bond yields over a
    three-year period.

    Bernanke's Fed has set interest rates at zero the past four years. In 2012, the 1960s formula has
    finally caught up with the SSTF. It got murdered on this year's rollover.

    The following is from the SSA. It shows what has matured this year and what new investments
    have been made. I will be breaking down sections of this report, so don't get eye strain looking at
    this..

Bob,

We are moving into a post-human world in which people will upgrade their bodies with items which are
more reliable and require less maintenance.
One feature of such upgrading would be to install a brain adjunct which bestows a desire to work, create
and invent.

Why would someone whose body and brain is youthful and full of desire and passion to create and
invent need to draw benefits from Social Security?

I assume that humans who have not been upgraded will be terminated and those who have been
upgraded will still be "young" and therefore useful.

As a result, I assume that Social Security funds will be in excess.

I simply don't understand your problem other than the "usual" Luddite view of the future.  You seem to
believe that by studying the words of von Mises, who died in 1974 (that is in the previous millenium), one
can predict the economic future.  Whereas this might have been true at one time in the past, the
technology which is rushing toward us will make history a poor teacher in many cases.

For example: Let me suggest that you place a bet with a typical follower of von Mises on the price of a
barrel of oil in five years.  Realistic futurists will win such bets from Austrian Schoolers in most cases
simply because the future depends more on technology than on economic theory.  

To give you an example of why this is true, consider the following Fiscal Cliff which is coming up:

Humans 7 billion
Robots 10 million

Considerations: Humans are significant in that they have a soul, can often vote, are cared about by
other humans, are the sole source of intelligence.
Robots are fewer in number undercounted (50 microprocessors in each car) but still not that bright to be
counted as significant as humans.

BUT: In 2019 there will exist at least 1 supercomputer whose ability to think will be equivalent to a human
being.
By 2029, there will be software and hardware such that a PC will have the ability to think of a human
being.
At the point in time where PCs and humanoid robots have the abilities of humans without the laziness of
humans, will be powered simply by electricity, not complicated food items, you will find that a cliff has
been fallen off of.  To consider the current trends, picture that smartphones will be smart, tablets will be
smart, PCs and Macs will be smart, Cars will be driving themselves.

Add a few years to make sure that enough robots, smartphones, and tablets have been manuractured.  
Let say it is 2035.

Post cliff year 2035:
Humans: 9 billion
Robots with intelligence of humans: 20 billion.
Robots which are 1000 times the intelligence of humans: 10 million

Where does Social Security come in?

donbot



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