Name: The Government Will Shut Down Social Security (And The Math Proves It)
Uploaded: 2026-01-02T18:17:03.000Z
Duration: 14 min 1 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

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The cost of living lately has been rising so fast that the middle class has been shrinking.

But this plan is going to entirely crush the middle class.

Even if you spent your entire life paying payroll taxes, you are not going to receive your Social Security benefits.

I know that this sounds like an exaggeration, but

the the national debt has grown so big that the US Government right now is forced to sacrifice the Social Security Trust fund to continue making the interest payment on that national debt.

And if you think that's an exaggeration, watch this video till the end and you will be convinced.

So if you are ready, give this video a thumbs up and let's get right into it.

The Social Security Trust fund receives money from taxes and makes the payments to the retirees.

And those payments must be be indexed every single year base of inflation.

There is something called cola, the cost of living.

The higher the inflation is, the higher will be the cost of living.

And if those dollars are not adjusted every single year base of inflation, then those payments will worth nothing.

And every single dollar that it receives from taxes must be invested in the US Treasuries.

This is the only investment that the Social Security Trust fund can possibly make for.

This is not the best investment in the market.

Last year, for example, the S&P 500 grown by about 18% while the US yields were about 4%.

So clearly it would be far better if the trust fund has invested in the stock market.

But because it's a trust fund and it must ensure that it's investing in the safest investment possible and it's very liquid and it means that it can easily sell those investments in case if it needs that.

That's why it can be investing in the stock market.

Yes, the stock market usually does far better than the yields on the US Treasuries.

treasuries, you know for a fact that you're receiving your exact yields.

And secondly, in case, if you need to sell those investments, you can easily do that.

You can't tell to the retirees that you will not be receiving your Social Security benefits just because the market is down and we can't be selling those investments.

While this system is not ideal, it works only because the yields on the US Treasuries will always be higher than the cost of living or cost of inflation.

treasury yields are about 4.5% while the COLA is about 3%, then the Social Security Trust Fund is receiving more money from those yields than it's adjusting based on the cost of living or inflation.

The only way that this system will not work is if the system is flipped.

If inflation is 5% while you are receiving 3% on your yields, then you have to increase the Social Security payments by 5% while while your income from those yields are going down.

Ideally, that should never happen because investors will always require a higher yield on the US Treasuries than inflation.

If inflation is 3%, then investors are not going to invest in the US Treasuries.

If the US government is not going to offer a rate that is higher than 3% at least 4% because you want your money to continue growing.

But what if we artificially lower down the yield on the US Treasuries?

The Federal Reserve has already started the quantitative easing.

Quantitative easing is the Federal Reserve printing money and buying the US Treasuries to artificially bring down the yields on the US Treasuries.

And that means that the Social Security will start receiving a lot less from their investments.

On the other side, Quantitative easing increases the supply of money, which means that it is going to increase inflation, which means that it is going to increase the cost of living.

So we are headed into a situation where the cost of living is going to rise while the income on the US Treasuries are going to fall.

Inflation last year is going to be about 2.7 to 3%.

We still don't have the final numbers, but it's going to be around that.

While the return on investment that the Social Security Trust Fund made from their investments is about 2.6%.

So artificially lowering down the US treasury yields is going to destroy the Social Security Trust Fund.

That is not going to happen overnight because the trust fund has about $2.7 trillion in asset.

But if that is going to become a trend, then for a fact it is going to run out of money.

You don't have to be a genius to understand that if your expenses are rising while your income is falling down over time, you will find yourself in a situation where you will be spending far more than you're earning and it's a matter of time before you will go bankrupt.

Historically, the Social Security Trust Fund never faced anything like that.

Because if you go back to 1960s and 70s, the US Treasuries offered a very high yield even though that inflation time to time, especially 1970s, were extremely high.

The yields offered a very high return because the interest rates were extremely high.

And back in the days, the Federal Reserve did not have something called quantitative easing.

So if the Federal Reserve increased the interest rates to about 12%, the yields on the US debt would be around 12%.

And that's how the Social Security Trust Fund over time generated a lot of money by investing in the US Treasuries.

Starting after the 2008 financial crisis, the the interest rates or the effective interest rates were extremely low.

But during this period, inflation was also extremely low.

So while the Social Security Trust Fund did not make or generate a lot of money from their investments, it didn't adjust its payments to the retirees because the cost of living wasn't actually rising at all.

Some of these years, inflation or the cost of living, was literally zero percent.

And for the first time ever, starting from 2025, we're entering into a completely new era.

An era where interest rates are going to be very low.

And there is also going to be quantitative easing, which means that the yields are going to be very low moving forward.

At the same time, there is going to be high inflation.

We already have high inflation and inflation is not fixed yet.

And if you start quantitative easing, it is not a surprise that inflation will get out of control.

Even if it does not rises to 4 or 5% and it stays at around 3% while the yields on the US treasuries will go down below 3%, then mathematically you will still go out of business.

But historically we have already seen that massive quantitative easing rises inflation way above 3%.

But if we know that is a problem, why would we do that?

Why would the government do something like that and purposely destroy the Social Security Trust fund?

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The US national debt is about to cross $40 trillion this year.

So a single percentage in interest payment is $400 billion.

By the end of the year or next year, it will cross $50 trillion.

So a single percentage in interest payments will be half a trillion dollars.

So if the government is making 3% in interest payment, that's $1.5 trillion.

If the yields rise to 4%, that's $2 trillion.

If they rise to 5%, that's about $2.5 trillion.

And tax revenues are obviously are not rising that fast.

So either the government is going to allocate half of its budget to into interest payments, if not the entire budget, or they have to artificially bring down the yields on the US Treasuries.

But if you bring down the yields on the US Treasuries, you are destroying the Social Security Trust fund.

And based on this trend, it seems like the government has already decided that it's going to sacrifice the Social Security Trust Fund.

But the trust fund has $2.7 trillion in assets.

Well, since 1960s and 70s, the trust fund has been generating a lot of assets.

Especially when back in the days the yields on the US Treasuries were extremely high.

And the trust fund enormously benefited out of that.

But those $2.7 trillion are quickly are going to go to zero in the next three to four years.

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The Government Will Shut Down Social Security (And The Math Proves It)

literally

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