Seems Everyone Forgot About This One

Tim Iacono's blog has an interesting story about Social Security.

Apparently, the estimated Social Security surplus has shrunk from a combined $80 billion through this year and 2010 to $19 billion. This means that unless payroll taxes recover, the government will have to start borrowing (or raising taxes, or cutting benefits) to pay for Social Security beginning in 2011.

This is just in time for baby boomers who've seen their wealth shrink by $20-30 trillion.

This is on top of pension fund insolvency.

This will be good for gold, and very bad for the dollar. When I get a chance one of these weekends, I am going to look for 5 to 10 gold exploration stocks that are not part of any ETF's. I will pay particular attention to companies that have big company backing, and I will put 1-2% positions in the ones I like.