Holmes’ Conservative Answer to the Pension Mess

While Democrats and other such people refuse to admit the truth, the Pension Systems in America are a mess, bankrupt.^{AmThinker,3/29/11, “PBGC Another Fine Pension Mess” by Gary Jason}  Whether a private corporation, private company, municipal, church, state, federal or Social Security, the mess is beginning to smell. The smell is not just the stench of corruption but the winds of suspicion, hate and discontent among the population that ‘somebody’ won’t be sending the looked-for-checks. This suspicion is well founded. Like the so-called Social Security Trust Fund, real assets are missing. Still, many expect the taxpayers to magically ‘pick up the tab’ with dishonest Democrats insisting the facts don’t matter, tax more.

Over the Decades, government fund after government alphabet fund has been established for taxpayers to ‘pick up the tab’ and assure selected others that promises would be paid. Recall the 2008 financial meltdown caused by FannieMae and FreddieMac? Earlier, FDIC insurance persuaded savers that low interest was best because the money on deposit was insured. Savers overlooked the fact that they were not making a needed profit. The Pension Benefit Guaranty Corp (PBGC) is another. Established to guarantee corporate pension funds, it is a paper tiger waiting to collapse or bankrupt taxpayers for a chosen few.  Additionally, state and local employee pensions have no such ‘backing’ but the operators refuse to provide accurate and timely data though the largest in America CalPers is grossly underfunded. But who knows?  Joshua Rau of NorthWestern’s Kellogg School of Management has said the states have a combined $3 trillion of unfunded liabilities. ^{WSJ, 12/5/10, Pension Woes Prompt GOP Move}  Still, the growing financial tsunami is ignored except as by some voting for Conservatism in Wisconsin.

The missing ‘Trust Funds’ issue is particularly twisted and evil because so many have by force of law ‘contributed’ tens of thousands of dollars over the last 40+ years. Consider that with only a modest $35,000 average income over the 40 years with an average FICA tax of 9% and average 5% returns would equate to a respectable sum of $399,545. In anybody’s thinking, such a reasonable sum should reasonably and responsibly pay out the expected monthly check.

The problem: Average Joe is reasonably expecting his $1,200 monthly check to continue. Why shouldn’t it? Until recently, all the officials and planners since FDR have been assuring him that Social Security was sound and the government was taking the funds to guarantee money for his retirement. They lied. Congress lied. Presidents lied. Officials lied. Politicians spent the funds to buy re-election votes. Like it or not, the money is not there! It’s not in the ‘Trust Fund’ and it is not in most of the other pension programs. The officials lied, overly generous benefits were promised that could not be provided … and for years, few cared about the arithmetic. Like myself, some spoke up. We warned! Few listened. Now, today, about 50% of the Social Security checks are coming out of general taxes and the forecast is for worse to come.

Politicians don’t do well with temptations. Rejecting explicit Constitutional definitions of their power and duties, politicians have continued to find ‘an unanchored currency an irresistible  temptation’.^{Editorial, NY Sun, 2/11/11}  A prompt demand and return to the Constitutional is required. Freedom from FICA and the knowledgeable use of Ted Benna’s 401k plan are responsible.

While the British weekly magazine The Economist, ^{4/9/2011, Special Report: Falling Short, pp. 1-16}  presents very comprehensive demographic and pension data for America not unlike a multitude of other studies, the five unwanted, but known and necessary conservative conclusions remain: (1)promised pensions must be reduced, (2)qualification ages must be raised, (3)new defined benefit pensions must cease, (4)those under 50 must be free of Social Security   and (5)currency must be anchored, likely in gold. Rejecting these, righteous divisions not seen since the Civil War threaten. Right is might; like the Confederates, no enduring success should be expected by the Democrats when rebellion against right is chosen.  

An Ill Wind and Dark Clouds

We have already seen the ill wind’s growing fury in spite of the media’s cover up, of blatant union thuggaries in Wisconsin against Governor Walker and his measures to bring fiscal responsibility and fairness to all the people of his state. The dark cloud grows more ominous as the Democrats lie, slander, twist and grasp to deny and cover up Congress’ racketeering now exposed by Social Security’s and Medicare’s tsunami bankruptcies, the criminality and destructionism of fiat paper money (inflation), the brash perfidy of a President and Administration openly bent on disregarding the sworn duties of office and limits of power enumerated in our Declaration of Independence and Constitution, their wicked attempts to destroy America’s freedoms, businesses and profits from property use and ownership as they subsidize evil and incompetence.

But more dangerous, more ominous, more damning than the careless, coveting and irresponsible state of the American population is the contempt for God and His Word in church congregations called by His Name! He will that they be holy.

There is no middle ground. Man must be born again and this shown by a persisting manifested desire for His Word and way or continuing to mature into the hideousness that marks every born sinner: corrupt, dead in trespasses and sins, lies, murder, legalized murder, blasphemy, gluttony, fornication, hypocrisy, sodomy, no shame, theft, covetousness, laziness,  … lead by the acceptance of a false god or false gods such as Allah or other gods of vain imaginations!

 If America is spared, it will be because those claiming His Name repent and put their houses in order, gladly suffering the scorn of both churchite hypocrites and the world. Salvation begins with the Lord! Christians cannot be demanding, arrogant, threatening welfarites coveting their neighbor’s stuff … no matter how rich they may be! Beware the messengers of covetousness, sloth and false gods! Allah is a false god. Those claiming to be Christians but living in open sin like sodomites, evilly take His Name in vain. Beware!

The Bible exhorts us to pray for those in authority … that we may lead a quiet and peaceful life. Most ignorantly think we are to pray for the success of the evil men in public office rather than ministering reproof as did John the Baptist. We are to seek their repentance at the preaching of the Gospel and their demonstrating faithfulness and obedience to God!

The churches send some sort of secret missions to Mexico, Haiti and around the world but are silent to open, shameless sins in their own family, church and community! The housing industry shamelessly lobbies for more perverted, unconstitutional government support and more easy debt money so their members can conveniently sell debt, grow and prosper.

Now the President considers another ill-fated ground war, this time in Libya, to detract from the budget war hopefully pending in Congress. With his speech, ^{Wednesday, April 13} President Obama has clearly shown his contempt for the Constitution, his Socialist view that all good comes from the government the owner of all, his scorn for reasoned argument with truth and his libeling of Conservatism as evil rather than his Socialism.  Beware!

If America is spared, it will be because those claiming His Name repent and put their houses in order, gladly suffering the scorn of both churchite hypocrites and the world. Salvation begins with the Lord! We are directed that as we go to be making disciples teaching them all things He has taught…  No apologies. ^{Titus 2:7-15}

Truth, the Market, Social Security and Professionals

The societal problem: the promised trust fund savings and security gone, the people misled by political lies, promised no-risk elder years, other fraudulent promises, mis-education and decades of daily doses of slanders and harangue against  God, the market, private property and individual responsibility[1], what does American Joe do? Other than more of the same ignoring and denying the truth, ignoring and denying the grave necessity of major changes or fiscal disaster, what can Democrats offer? Will faith, truth, grace and God’s mercy win out? How?

In brief, without the ability to discern the truth and grace to accept the truth, we are nowhere. We would be left with another poll, another opinion, pending national fiscal disaster and more of the evil tactics of the Wisconsin Democrat unions and politicians seeking to overthrow and invalidate, by slanders, destructions of property, threats, coercive assemblies and other coercions, the voted will of Americans in Wisconsin for necessary major budget, tax and political promises changes. 

History-wise, the Market and Capitalism, even before FDR, were mislabeled, derided and pilloried as evils and ineffective at best. The political promise: Only more government could make all men equally prosperous, make all the outcomes of all transactions equal and fair and equally redistribute property … as if government employees knew everything, government worked well, government produced anything and government was inherently honest and without evils. Think Social Security and Obamacare.

More and more, more government was in; Constitutional limits were out.  In truth, the Market and Capitalism are the words for the protected freedoms of everyman to sell and buy goods and services or solemnly contract for them with knowledge but without coercion, fraud, theft or government intrusion absent coercion, fraud or theft. (Read the Constitution.) They are words, freedoms and values no longer prized and taught in government schools. These freedoms also ‘allow’ men to make mistakes with each mistake not only alerting the unwise, imprudent and lazy of adverse consequences but showing the blessings of liberty, knowledge and diligence with God’s favor!

With FDR, the Social Security program was sold and misrepresented as the All America Savings and Retirement Program. Not only were millions of dollars taken to ‘save for the future’, but gullible, ill-taught Americans thought they really didn’t have to personally make calculated measured preparations for old age any longer. The true cost of the Program was disguised by taxing the employer for half of the employee’s tax. Then, Medicare was added as Social Security funds were used to buy the votes of freeloaders, the ignorant and Democrats. 

Meanwhile, the fruiting consequences have grown and matured … in God’s orderly world. Now, the fraud of the Social Security Trust Fund has been made glaringly public. Major changes needed in lied-about benefits and eligibility age have now been publically disclosed but must be politically and officially made and changed.  However, the very elements necessary for responsible, working Americans to reconstruct, build and prepare or endure during older age are the long, Democrat-damned Christianity, Market and Capitalism answers: faith, individual incentive and private property profits from the market’s many diverse markets!  Or, will the needed monthly checks again drop from Heaven like manna from a holy God held in contempt by multitudes?

Investment, savings and insurance professionals have long been silent to the frauds and evils of Social Security, Medicare and private health insurance. In fact, it seems, they have colluded with the regulators to crowd out small businesses to build their growing empires for the wealthy. Nonetheless, consider that they view 6 to 8% average annual returns as good and acceptable and the most-likely top returns! Other rating organizations promote as 5 star winners mutual funds with similar or even lesser returns based on relative ranking, not excellence nor needed minimum 20% Average Annual Returns required to build a retirement sum.

Arithmetically (which means unarguably), none can build an affordable and enduring retirement with such paltry accepted 6% gains. To produce a $40,000 annual income (representing 80% of a usual $50,000 income), a sum of $833,333 is required which requires annual savings of $24,560 for 20 years. (A gigantic 50% of annual income before other taxes, 15% for FICA, 15%+ income taxes, 10% tithe, etc., etc.! and, oh yes, food, clothing, housing, fuel, electricity …) With a minimum benchmark 20% Average Annual Return (AAR), a modest minimum sum of $250,000 is necessary which requires an affordable $1,868 annual savings[2] but still provide the same $40,000 annual income.   

Finally, because of Medicare, there is no private health insurance for those over age 65. Why? Simple! With the taxpayers paying 75% of the cost of Medicare, no private plan can compete. What do the Democrats, Mr. Romney of Massachusetts and the big health companies offer? More of the same but worse. It’s called Obamacare with greatly increased prices, fines, more collusion, disarray in the marketplace and robbing Medicare to pay Obamacare! What frauds the ignorant and blind follow!

The societal problem: the promised trust fund savings and promised security are gone. The masses misled by popular political lies, fraudulent promises, mis-education and decades of daily doses of harangue against God, Christianity, private property, ownership and damning the very market that offers a return to sanity, work and blessings are seen as evils. What does American Joe do? Other than ignoring and denying the truth, what do Democrats offer?  Let them eat cake! But, what can Joe do now at 70? What can young Joe do at 45?

Personally and professionally, I remain persuaded that the solution begins with revived individuals putting their thinking, lives and houses in order in light of truth, righteousness and duty under Christ recognizing that Democrats are liars, deceivers and deceived at war with God and traditional America.  Claimed Christian ministers have to repent and recognize that
Socialists murder, endorse baby murder, steal, hate God, commit sodomy, covet and endorse covetousness … by whatever names, euphemisms or political schemes. Further, these are sins to be identified and reproved. Not the government but Jesus is the Good Shepherd and only He is to be worshipped, obeyed and trusted in the light of His Word. Thus, some individuals by God’s grace will be rescued, saved, changed and succeed in righteousness and holiness by ceasing to follow the crowd, their natural inclinations and darkness. One by one they will be born again and show themselves by change and deeds as followers of God in light of the Bible.

Finally, only when truth and light come, when Socialisms are recognized and called out for the atheism it is are freedoms and liberty known, chosen and practiced by grace through faith. In America, this means political frauds and tyrants (Socialists and Democrats) and their lies, frauds, evils and claims that big government is paternal and will fairly redistribute other men’s stuff  are recognized, reproved and stopped with obedience to God happily practiced. With such faith, light and grace, family provisions^1Tim.5:8 will be made using productive 20% returns! 

[1] American Thinker, 3/16/2011 Can Niall Ferguson Save Civilization