Editor's Note: The following report is excerpted from Jerome Corsi's Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and senior managing director of the Financial Services Group at Gilford Securities.
Think again if you believe Social Security will offer you a secure retirement, Jerome Corsi's Red Alert warns.
Social Security is in the red for the first time since the program was overhauled in 1983, and one year earlier than originally projected.
After returning to black for a few years, the Social Security cash flow will go into the red permanently, starting this year, CNN reported.
"The improving economy is expected to result in rough balance between Social Security taxes and expenditures for several years before the retirement of the baby-boom generation swells the beneficiary population and causes deficits to grow rapidly," Treasury Secretary Geithner said, trying to explain Social Security's financial problems.
CNN further reported that with unemployment remaining at 9.5 percent, nearly 50 percent of baby boomers are taking a percentage of their Social Security benefits as early as age 62, largely because they are short of cash and cannot find jobs.
This year, Social Security is estimated to pay out some $29 billion more than is taken in.
Social Security last ran in the red during the stagflation years of the 1970s, characterized by Democratic Party President Jimmy Carter and his inept economic policies that generated both high unemployment and high inflation.
Under current actuarial assumptions, the Social Security trust fund is expected to be completely exhausted by 2037.
As Red Alert has reported, Social Security has become nothing more than a federal-government-run Ponzi scheme in which the payroll taxes of those currently working are applied immediately to pay the retirement benefits of those already receiving Social Security.
For more information about the future of Social Security, read Jerome Corsi's Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, "The Obama Nation."
Red Alert's author, who received a doctorate from Harvard in political science in 1972, is the author of the No. 1 New York Times best-sellers "The Obama Nation" and (with co-author John E. O'Neill) "Unfit for Command." He is also the author of several other books, including "America for Sale," "The Late Great U.S.A." and "Why Israel Can't Wait." In addition to serving as a senior staff reporter for WorldNetDaily, Corsi is a senior managing director in the financial-services group at Gilford Securities.
Disclosure: Gilford Securities, founded in 1979, is a full-service boutique investment firm headquartered in New York City providing an array of financial services to institutional and retail clients, from investment banking and equity research to retirement planning and wealth-management services. The views, opinions, positions or strategies expressed by the author are his alone and do not necessarily reflect Gilford Securities Incorporated's views, opinions, positions or strategies. Gilford Securities Incorporated makes no representations as to accuracy, completeness, currentness, suitability or validity of any information expressed herein and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its display or use.
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