From the August 2001 Idaho Observer:

President's commission concedes Social Security system fraud

By Irwin Schiff

Hearings going on right now in Washington, D.C., regarding Social Security, and how the system can be “straightened” and/or “saved” have forced the President's Commission on Strengthing Social Security to grudgingly admit the basis of fraud in the system.

There are simply no “reserves” out of which future Social Security benefits can be paid. The so called “trust funds” are merely journal entries indicating how Social Security revenues have been used by the federal government to fund non-Social Security programs and projects.

The government claims that these journal entries, in reality, represent “government bonds,” but why would the government go to all the trouble of issuing bonds to itself and then indicate how much money it owes itself?

Assuming the federal government had such “bonds,” how can they be redeemed? The government would have to present the “bonds” to itself for payment. Where would it get the money to pay itself for the “government bonds” it claims to be holding? It would have to tax the public again to get the money the public had already paid but which the government spent on projects and programs not related to Social Security.

“Surplus” Social Security revenues were never put into any account where they could be tapped to meet future Social Security obligations. In other words, the Social Security system is based on the same principle as a chain letter -- and it is obvious that it is now running out of chain. And there is no way it can be realistically fixed.

Prior generations of vote-seeking politicians simply promised non-productive Americans (those whom the system encouraged to become non-productive so they may receive benefits) far more than productive Americans were capable of supplying.

Remember, those who consume but do not produce, merely consume what others produce but are not allowed to consume. How long can this continue? Remember, the government produces no wealth. It only takes from producers to give to non-producers. When Social Security benefits were first paid in 1941, there were about 250 producers supporting one non-producer drawing benefits, so each producer didn't really feel the pinch. Now, two producers have to support one non-producer. There is no way America's producers can continue to support non-producers -- especially when Americans produce far less in real wealth today than when Social Security was first adopted.

In 1936 almost all of the products Americans consumed were made in America. How many of these products are made here now? Try buying a pair of shoes made in America. So who is going to produce all the goods that retired and disabled Americans (and various others elegible for Social Secuirity benefits) need in order to survive?

For an understanding of how this socialistic swindle was foisted on the American public, I suggest you contact Freedom Books at 1-800-829-6666 or go to our web site, www.paynoincometax.com and order The Social Security Swindle there. The book was actually written in 1984 and attempted to warn the American public even then of what is now being revealed in the Social Security hearings now taking place in Washington, D.C. The Social Security Swindle reveals the deliberate fraud perpetrated by the government to hide the true financial character of Social Security from the American public.

On April 14, 1937, the 1st Circuit Court of Appeals declared Social Security unconstitutional. How the Supreme Court (illegally) got around that decision alone is worth the $16 price for the book.

Irwin Schiff, one of the nations most notorious income tax protestors, is conducting a 2-Day Seminar/Workshop in Las Vegas the 29th & 30th of September. Info at www.paynoincometax.com