Social Security: Tick Tock Tick Tock

The developing and unavoidable catastrophe in Social Security is a topic that doesn't get quite enough coverage. While the entitlement system in America has been setting up to implode for decades, the process has been greatly accelerated by our government's non-stop bailouts, stimulus programs, taxpayer guarantees, and programs of monetization.

Recent news in the Social Security front suggests that the recession is accelerating the process of default. From Bloomberg, Social Security Applications Almost Double Because of Recession:

Applications for Social Security benefits rose almost 50 percent more than expected this year because of the recession, according to the federal retirement program.

“We are seeing a significant increase in both retirement and disability applications as a result of the recession,” said Mark Lassiter, a Social Security spokesman.

The 150,000 extra retirees may add to the financial pressure on the entitlement program. In May, Social Security trustees said expenses would exceed revenue beginning in 2016, one year earlier than their previous forecast.

The Social Security Administration had projected an increase of 315,000 applicants for the 12 months ending Sept. 30 partly because the first baby boomers -- those born right after World War II -- are starting to retire.

The actual increase was higher. Agency statistics show that 2.57 million people requested benefits, up from the 2.10 million applications received during the previous 12 months. That’s an increase of 465,000, or 47 percent higher than the expected rise.

The latest developments in Social Security spell big trouble for our government, which is currently running 12% fiscal deficits in a money printing experiment that is bound to end in disaster. While the Madoff Ponzi scheme received extensive media coverage, there is hardly enough media coverage of the biggest Ponzi Scheme ever known to man- Social Security. Negative demographics trends and the attendant rise in social obligations are in the beginning stages of crushing our economy for an extended period of time. Remember, the only way for our government to meet its debt obligations is through monetization. Gold will be the prime beneficiary.