Tuesday, October 2, 2012

Social Security benefits to reach $65 billion per month to government

It appears to be fortunate for the elderly and those on Social Security that Ben Bernanke implemented QE4evr last month, just as the national debt crossed over $16 trillion dollars.  Accordingly, that additional money is soon going to be needed as on Oct. 2, the cost to the government and to taxpayers for Social Security benefits has now reached $65 billion per month.



-The monthly SS payout is bigger than the market cap of some well know companies, including: Amex, 3M, US Bankcorp, Amgen, eBay and Caterpillar. Goldman Sachs is worth a measly $54b. SS could buy the whole thing with just three-weeks worth of payout.

-The annual cost for SS is greater than the ridiculous monster market cap for Apple. If SS used its muscle to buy big cap stocks, it could buy up all of the shares of Microsoft, Wal-Mart and Google in less than a year.

The annual SS payout is about the same as the GDP of the Netherlands. It is well larger than the output of either Turkey, Switzerland or Saudi Arabia. In 2013 SS will spend more than the GDP of Indonesia, a country of 250m people. - Bruce Kasting

Chart courtesy of Bruce Kasting
When you add this cost to the 47 million Americans on food stamps, and the over 100 million Americans who receive some form of government benefit, you begin to see why the system has no choice but to inevitably collapse at some point, and no amount of Fed spun money can keep up with the promises and corruption of politcians.

1 comments:

They better have at least decent online bookkeeping in place. That's a lot of money to keep track of.

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