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Social Security Checks: We have GOOD News and BAD News

by Rachel MillsNovember 05, 2022

The good news first.

Checks are soon to be in the mail and a cost of living increase is coming. And its historic at 8.7%. As Joe Biden pointed out, it’s the biggest in decades. He’s very proud of that. Or he was, until (now) Elon Musk’s Twitter added context to a White House tweet about it.

Yikes, that fact check. The White House has since deleted that tweet.

Which brings up the bad news.

Your cost of living increase is, by law, tied to inflation, and it’s not going to be enough to cover the real effects of inflation.

To check your benefits click here https://www.ssa.gov/

For decades, formulas for metrics like inflation and money supply have been manipulated to present a more favorable picture to the public. Business economist John Williams noticed this and started keeping track of labor, employment and inflation statistics using classic methodologies and the result is http://www.shadowstats.com/

Are you ready for this?

Using the formula from 1980 – the same formula that measured the inflation of the 1970’s, we have HIGHER inflation than we did then. Calculated that way, inflation is around 17%, not the official 8-9%.

Shadow Government Statistics

How do you feel about that "bigger" check now?

A reduction in oil and gas supplies are just one contributing factor to inflation.

Another glaring factor is of course, all the money printing. What has all the government spending and money creation done to our money supply?

Shadow Stats money supply

Look how the M1 line goes vertical. That is a clue we could be dealing with that hangover now.

So your cost of living adjustment is much needed, but practically speaking, 8.7% is not going to be nearly enough to maintain the same purchasing power your social security checks once had. But the solution is not bigger checks and more money printing. That caused the problem to begin with. Part of the solution would be to stop money creation and profligate government spending and allow supply chains to catch up.

John William’s general assessment:

“Monetary, Economic, Inflation and Political circumstances all continue to show intensifying systemic instabilities and sharp, meaningful near-term deterioration, with rapidly mounting risk of extremely negative, albeit inflationary, economic and financial market turmoil.”

...

With the dollar continuing to lose purchasing power, it may be a good time to investigate precious metals, particularly if you’ve got an old IRA to rollover. A rollover can be accomplished with no out of pocket costs, and for certain account sizes, Lear can cover some fees for you. Ask your account executive for details.

Physical gold and silver are unprintable and maintain purchasing power remarkably well over time. 

Call us anytime to get started!  

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