I can still remember 20 years ago when I needed new brake pads for my car, I knew this young mechanic at a shop who did some side work so he replaced them for me one Saturday morning. He made the comment which was funny at the time and even funnier now, “These come with a ‘lifetime guarantee’ so it’ll be free if you ever need to replace them.” My immediate thought was, “My lifetime? Yours, because you’re younger than me or the company’s lifetime who made the pads?”
“Lifetime guarantees,” isn’t that what it became all about? You work for a company for so many years and “they’ll take care of you” for the rest of your life? Or Social Security? You “pay in” for however many years and when you turn 62 or 65 they pay you a monthly stipend. We complain about the fact that we morphed into a nanny state but on the other hand “expect” that all of the “lifetime guarantee” promises be kept. Just take a look recently at Detroit, what will happen with those pensioners? How about the past workers for Chrysler or General Motors, how has worked out? Do you see where I’m going?
The promises from city, state and federal governments cannot be fulfilled. Corporate pension plans are ridiculously underfunded and the pension guarantee fund barely has enough to fix one large plan much less thousands. People for years now have planned for and many relied 100% on promises made to them of the “lifetime guarantee” sort. This will soon be seen for the problem that it is.
Yes, we have too much debt. Growth doesn’t seem to be moving upward in any fashion, anywhere in the world. Here in the U.S. more people “collect” than actually pay into the system. Currencies are being debased everywhere and even if the promises are kept…the money is just not going as far as it used to. …And the people still largely just sleep because “it can’t (won’t) happen to me.”
My point for writing this is that no one is going to “save you” when the time comes that you need being saved. The social fabric today is not even close to what it was in the 1930’s when neighbors helped neighbors. Your company or state has not put away what was needed to pay what was promised and the federal govt., well when they tell you that they are there to help you…
You and only you can help yourself. Stocks come and go, bonds can and do (will) go bust, currencies get debased on purpose…but gold gets passed down from generation to generation and is relied on during the worst of times. Over a long timeframe I know of no other asset that offers a “lifetime guarantee.” When financial systems get wiped out or empires collapse, gold has historically carried its owner into the next system with wealth intact. Maybe the only things “guaranteed” in life are death and taxes but I can tell you with 100% confidence that no matter what happens that gold will spend and have value in the future. The same cannot be said about many other things except maybe food and fuel but 2 month old bread you will not eat nor will 2 year old gasoline burn.
By the way, when my “mechanic” picked up and left town 6 months after installing the pads I asked him as a joke, “What about my lifetime guarantee?” He told me what we will all hear “oh well”… Who could have seen it coming?
Bill,
I wish you would not dump on social security. it was paid for along with any other insurance purchased. how about Allen Simpson and all other great leaders America has had giving up all the perks they now receive. I bet there would be enough in that basket of plenty to pay all of the ss that was purchased by the people. let Allen Simpson and the rest of them live on ss. they screwed it all up so give them some of their own medicine.
Paul
not dumping on Social Security…only saying the obvious that it is broke and now only has “promises” in it.
This is a great narrative for why gold and silver is necessary for wealth preservation. I really enjoyed this well written explanation!
Thank you David.
Paul! It is not Mr Holter who is, “dumping on SS.” The fact is that its those who made the promise of it to us in the first place (the political class). They’ve spent the money you paid into SS to keep other promises they’ve made and there is no SS Fund. I would think by now that all Americans must know that their SS, “contributions” go into the same pool as their income tax payments, and, in fact, are used to fund the much better pensions of Federal Employees, as well as the war in Afghanistan… Again: Our Social Security, “contributions” are spent on the same things our income taxes are spent on, and that’s the truth. Our, “Representatives” in Washington are playing us for fools. Like it or not Social Security is a ponzi scheme.
Paul,
I also live on social security, but I realize when the financial collapse happens my ss will stop.
Yes, the money was held out of our checks but it was spent years ago and replaced by IOU’s. During a financial collapse those IOU’s will be worthless !!!
Bill, Don Paul and RF:
Men, I am lucky enough not to have to live on SS, I saved and invested as my fellowman bought new cars, boats and expensive vacations. Believe me there has been no free lunch for me. However when I even think I hear that SS is being blamed for our situation in this country I go ballistic. We have been cheated and it continues to this day. If the politicians can light their cigars with $100 bills why can’t I blast them whenever I want. I admit, Bill you were only writing the truth, but it sent smoke pouring out of my ears just reading the truth. Fact: There was a time in my life when I actually felt good about paying my fair share, but the point has arrived that he who pays today is not only paying for himself but many others as well.
Let there be peace amongst us because at this point we only have each other. Paul
Hi Paul, sometimes the truth sucks but it is what it is. I didn’t mean to piss people off with this piece, only to point out that “lifetime guarantee” has been taken too far and is not what it appears to be. Peace.