Journal of Immunity

Vol 5 No 2 April-June 2007

The three parts of the Plechner Protocol Adrenal cortisol, thyroid support and a hypoallergenic diet

Mark Konlee

It was in 2003 in an interview with Alfred Plechner DVM that we first looked into applying his protocol that was used successfully for 30 years to treats cats, dogs and other pets for cancer and other health-related conditions, in the treatment of humans with HIV/AIDS.

Our interest was in applying the Plechner protocol for immune system dysfunction associated with AIDS and cancer. Plechner, a veterinarian, was curing pets with terminal cancer and other conditions using high doses of prednisolone, along with thyroid supplementation and a hypoallergenic diet. As Plechner explained it, cortisol supplementation helped to reduce an estrogen overload and the thyroid support helped the liver process the hormones more efficiently. The hypoallergenic diet (rice and lamb?) and veggies was noted to very important for long term recovery in pets but no explanation was offered for this special diet.

Our own search of the medical literature made some startling discoveries. In June 2004, we partially revised Plechner's theories upon discovering that cortisol was a powerful inhibitor of interleukin-6, (Il-6) an inflammatory Th2 cytokine associated with progression of AIDS, cancer and other conditions. Our revised theory was that the cortisol suppression of the inflammatory Th2 cytokines might be more responsible than lowering estrogen levels for the remarkable recoveries taking place. So remarkable that one dog with terminal lung cancer was cured in 6 weeks. (Peter Jennings never learned of the Plechner protocol). Plechner reported that cortisol supplementation will lower estrogen levels and it is a fact that estrogen can be carcinogenic under certain conditions. Plechner at the time seemed unaware of cortisol's additional benefits in lowering inflammatory Th2 cytokines.

While we had been searching for years (since about 1998) for way to balance the Th1 and Th2 arms of the immune system, we were surprised to find that hydrocortisone and its more potent pharmaceutical look-a-likes including prednisone and prednisolone could effectively reduce and suppress IL-6, tnf-a and NF kappa B, three cytokines most strongly associated with runaway Th2 cytokine activity and immune imbalance in AIDS and cancer but also in other conditions where disease progression has been associated with an overactive humoral (antibody) immunity and a deficiency in cell mediated immunity (CMI).

These other conditions include Autoimmune diseases where antibodies attack certain body tissues as in Rheumatoid arthritis, Grave's disease, Autism and Auto-antibodies where antibodies attack other antibodies produced by the immune system. While AIDS and cancer are not autoimmune diseases, they have some aspects that resemble autoimmune conditions in that some of the same Th2 cytokines (interleukin-6, tumor necrosis factor alpha and Nuclear factor Kappa B) are over-active. Thus a treatment that suppresses Th2 cytokines and that also improves Th1 cytokine responses would have value in the treatment of AIDS, cancer, Autism and Autoimmune conditions.

Armour Thyroid, that is naturally derived from bovine or porcine contains not only T4 but the active form of thyroxin known as T3. Thyroxin is a powerful inducer of IgA. IgA is needed for gut mucosal immunity. IgA along with Butyrate from Bifido bacteria in the colon help prevent unwanted byproducts of digestion from entering the blood stream and stimulating an antibody (Th2) response. Thus thyroid supplementation not only raises and normalizes body temperature and helps the liver process cortisone but also helps reduce the antibody immune response by improving the integrity of the gut mucosal membrane.

IgA and butyrate help heal a leaky gut and thus reduce food allergies. Healing a leaky gut is an essential requirement for recovery from AIDS, cancer, other conditions of Th2 dominance and Autoimmune diseases. Beside thyroxin, other inducers of IgA include Colostrum, Propolis, high doses of vitamin A, foods high in beta carotene (squash, dark green veggies) and active cultures of bifido bacteria in the colon. The latter is supported by a diet or supplements high in fiber (both soluble and insoluble) taken along with bifido bacteria. Butyrate is also available as a dietary supplement (Ecological Formulas)

In the Plechner protocol, the hypoallergenic diet is needed until the gut is healed and the absorption of unwanted byproducts of digestion stops. The hypoallergenic diet thus stops stimulating a Th2 antibody response. This completes our understanding of the triangular foundation of the Plechner protocol and the inter-relatonships of the parts to the whole of his treatment design.

Immunological findings in Autism.

Cohly HH, Panja A.

Int Rev Neurobiol. 2005;71:317-41.

Department of Biology, Jackson State University, Mississippi 39217, USA.

"The immunopathogenesis of autism is presented schematically in Fig. 1. Two main immune dysfunctions in autism are immune regulation involving pro-inflammatory cytokines and autoimmunity. Mercury and an infectious agent like the measles virus are currently two main candidate environmental triggers for immune dysfunction in autism.

"Genetically immune dysfunction in autism involves the MHC region, as this is an immunologic gene cluster whose gene products are Class I, II, and III molecules. Class I and II molecules are associated with antigen presentation. The antigen in virus infection initiated by the virus particle itself while the cytokine production and inflammatory mediators are due to the response to the putative antigen in question.

"The cell-mediated immunity is impaired as evidenced by low numbers of CD4 cells and a concomitant T-cell polarity with an imbalance of Th1/Th2 subsets toward Th2. Impaired humoral immunity on the other hand is evidenced by decreased IgA causing poor gut protection. Studies showing elevated brain specific antibodies in autism support an autoimmune mechanism. Viruses may initiate the process but the subsequent activation of cytokines is the damaging factor associated with autism.

"Virus specific antibodies associated with measles virus have been demonstrated in autistic subjects. Environmental exposure to mercury is believed to harm human health possibly through modulation of immune homeostasis. A mercury link with the immune system has been postulated due to the involvement of postnatal exposure to thimerosal, a preservative added in the MMR vaccines. The occupational hazard exposure to mercury causes edema in astrocytes and, at the molecular level, the CD95/Fas apoptotic signaling pathway is disrupted by Hg2+.

"Inflammatory mediators in autism usually involve activation of astrocytes and microglial cells. Proinflammatory chemokines (MCP-1 and TARC), and an anti-inflammatory and modulatory cytokine, TGF-beta1, are consistently elevated in autistic brains. In measles virus infection, it has been postulated that there is immune suppression by inhibiting T-cell proliferation and maturation and downregulation MHC class II expression. Cytokine alteration of TNF-alpha is increased in autistic populations. Toll-like-receptors are also involved in autistic development. High NO levels are associated with autism. Maternal antibodies may trigger autism as a mechanism of autoimmunity.

"MMR vaccination may increase risk for autism via an autoimmune mechanism in autism. MMR antibodies are significantly higher in autistic children as compared to normal children, supporting a role of MMR in autism. Autoantibodies (IgG isotype) to neuron-axon filament protein (NAFP) and glial fibrillary acidic protein (GFAP) are significantly increased in autistic patients (Singh et al., 1997). Increase in Th2 may explain the increased autoimmunity, such as the findings of antibodies to MBP and neuronal axonal filaments in the brain.

"There is further evidence that there are other participants in the autoimmune phenomenon. (Kozlovskaia et al., 2000). The possibility of its involvement in autism cannot be ruled out. Further investigations at immunological, cellular, molecular, and genetic levels will allow researchers to continue to unravel the immunopathogenic mechanisms' associated with autistic processes in the developing brain. This may open up new avenues for prevention and/or cure of this devastating neurodevelopmental disorder."

The measles part of MMR vaccine linked to Autism

In April, 2003, Singh VK reporting in Pedriatic Neurology that

"Virus induced autoimmunity may play a casual role in autism. To examine the etiologic link of viruses in this brain disorder, we conducted a serologic study of measles virus, mumps virus and rubella virus. Š.The levels of measles antibody, but not mumps or rubella antibodies, was significantly higher in autistic children as compared with normal children (P=0.003) or siblings of autistic children."

Case Reports from the Message Board

Results - 3 months on Pred and LDN - (from Simon)


I have posted elsewhere on this board the supplements I take. Over the last 3 months I have added Prednisolone and Naltrexone to my regime and here as promised are my results. I have been HIV+ for 4 years and have never been on antiretroviral medication. I believe much of mainstream medical opinion about HIV and how it causes AIDS is wrong. I believe that Keep Hope Alive have got closer to the truth than anyone - but this is not convenient for the drug companies as the proper treatment for HIV is cheap compared with antiretrovirals. I therefore don't expect this mainstream opinion to change any time soon - the drug companies, in my opinion, have way too much influence over drug treatment recommendations to patients.

To put these results into context here are all my results from first test until the result before this one. I have put the CD4% where I have it in brackets next to the actual number. The % helps to give the raw number some context - it is a % of T cells as a % of total lymphocytes. Throughout this time I have been taking a range of supplements - antioxidants, vitamins, minerals, amino acids -which I have listed below.

  • day/month/yr
  • 12/8/04 - CD4 350 (22%) VL 170
  • 18/10/04 - CD4 470 VL 12000
  • 27/1/05 - CD4 420 VL 1100
  • 26/4/05 - CD4 360 (22%) VL 3600
  • 1/8/05 - CD4 370 (21%) VL 36000
  • 4/10/05 - CD4 310 (18%) VL 7400
  • 5/1/06 - CD4 370 (20%) VL 6000
  • 18/4/06 - CD4 290 VL 14000
  • 11/7/06 - CD4 390 (19%) VL 38000
  • 10/10/06 - CD4 240 (18%) VL 38000
  • 10/2/07 - CD4 210 (18%) VL 22000
  • These results show some initial stability then a gradual decline in CD4 though the % is higher than would be expected for a T cell count in this range. According to my doctor this is because my overall white cell count has been consistently lower than normal.

    Here is my latest set of results.

    24/5/07 CD4 260 (13%) VL 50000

    I took 10 mg of Prednisolone a day for the first month and then 15 mg every other day until this latest test. I started just after the last result so this represents about 3 months usage. I also take 4.7 mg of Naltrexone at night. I made no other changes to my protocol apart from whole lemon drink made up as per Mark K's recipe so I think it is safe to attribute the change to the Prednisolone / Naltrexone combination. My CD4% has dropped even though actual T cell count has increased. According to my doctor my overall white cell count has increased and is now at a level considered normal. Around 13% CD4 is a level they would expect for someone with my T cell count. The VL has increased - I guess as a result of lowered TH2 immunity caused by the Prednisolone. My doctor is happy with these results and has no plans to recommend antiretroviral treatment.

    I think these results are encouraging - so far, so good. I'll increase the Prednisolone dose slightly to 10mg / day - 5mg at 9am and 5mg at 2pm as per Mark K's recommendation for someone with under 300 CD4. I plan no other changes - I'll report back after my next result. I'd be happy to end up with a CD4 around 350 and % around 15% - lets see what happens.

    I have noticed no weight gain - though I go to the gym 3 x a week and cycle etc so the exercise may be helping to stop any prednisolone related weight gain.

    For completeness, here is a list of all the supplements I am currently taking. I have this on a fully costed spreadsheet - if anyone wants a copy let me know.

  • Alpha Lipoic Acid - 450 mg / day. 150 mg b4 breakfast, 300 mg with Whey protein shake in afternoon
  • Bioperine - 10 mg - taken with supplements b4 breakfast
  • 5-HTP - 100 mg at bedtime
  • Calcium Lactate - 510 mg after breakfast
  • Copper - 2 mg after breakfast
  • CoQ10 - 100 mg after breakfast
  • DHEA - 50mg before breakfast
  • Ginkgo - 240 mg 120 mg after breakfast, 120 mg after dinner
  • Glutamine Powder - 10 g taken mixed with Whey Protein
  • Mixed Carotenoids - 15 Mg after breakfast
  • Melatonin - 3 to 6 Mg at night depending on how well I am sleeping
  • NAC -600 mg twice a day
  • Selenium - 400 ug 200 ug after breakfast, 200 ug after dinner
  • Vitamin B Complex - 1 Cap after dinner
  • Vitamin C - 1000 mg
  • Vitamin D - 2000 IU after breakfast
  • Vitamin E
  • Whey Protein Powder - containing 22 g protein - in afternoon or after gym
  • Zinc 30mg at bedtime
  • Garlic Wakunaga aged Garlic 3600mg 1800 mg after breakfast, 1800 mg after dinner
  • Niacinamide 3000 mg (slow release tabls) 1500 mg after breakfast, 1500 mg after dinner
  • Also, prednisolone, Naltrexone - as described above.
  • I hope this is helpful to anyone considering starting on the prednisolone , naltrexone combination. I'll update with new results every 3 months as I get them.

    Keep Well. Simon 05-24-07

    Colostrum increases CD4 counts

    Message Text from Keep Hope Alive Message Board on June 10. 2007

    "Some while ago, I tried Colostrum because my HIV medicine did not raise my CD4 count and the virus was still detectable after 6 month on HAART. I started using Colostrum two weeks before I had a new blood test. In 2 weeks my CD4 raised 100 (from 440 to 540), and the last HIV virus finally became non-detectable.

    "I told one of my friends who is HIV positive and does not take any HIV medicine to try the Colostrum to see what would happen to him.

    "He started 3 weeks before a blood test, and did not do anything else different than what he always does. In 3 weeks his CD4 raised from 490 to 550, and virus came down from 15000 to 12000. I told him, if he used the whole lemon olive oil drink daily - he would get even better results in getting the virus down.

    Just wanted to share these results with you." Micaell.

    Good results with Colostrum and EGCG

    - (Nicola) 05-08-07 from the Message Board

    "I have posted results a couple of months ago, and just got results from new test, confirming good trend.

    "I have been using a protocol based on EGCG capsules and anti-oxidants for a while, and results showed decreased viral load, but also decreased CD4 count, as time went on.

    "To counteract the decrease in CD4, I have changed my protocol as follows:

  • 1) Use of Colostrum (450 mg twice a day) 900 mg total
  • 2) Double the intake of selenium (now 2 x 200mcg per day)
  • 3) EGCG now taken as a cream that I apply to skin over lymph nodes spots on body.
  • I am getting good results:

    (new protocol initiated on February 2007)

    latest: (May 1st 2007): CD4: 797 ; CD8 1913; CD3 2764; viral load 6010

    and March 5th 2007: CD4 714 ; CD8 1837; CD3 2589; viral load 10354

    as compared to:

  • (January 11th) CD4 532; CD8 1296; CD3 1857; VL 6871
  • (October 28th, 2006): CD4 410; CD8 967; CD3 1398; VL 10429
  • (August 7th, 2006): CD4 458; CD8 955; CD3 1457; VL 22190
  • What has remained consistent: nicotinamide, NAC, L-Carnitine, Vit E, B, Calcium & Magnesium
  • Date=05-08-07 Name: Nicola

    Abstract: Colostrum used in Nigerian study inhibited diarrhea, reduced fatigue and increased CD4 counts 125% in 7 weeks

    ColoPlus, a new product based on bovine colostrum, alleviates HIV-associated diarrhoea.

  • Florén CH, Chinenye S, Elfstrand L, Hagman C, Ihse I.
  • Scand J Gastroenterol. 2006 Jun;41(6):682-6.
  • Department of Internal Medicine, Lund University Hospital, Lund, Sweden.
  • OBJECTIVE: HIV-associated diarrhea occurs in nearly all patients with acquired immunodeficiency syndrome (AIDS) in the developing countries. Diarrhea is caused by the HIV-related immune dysfunction and is pivotal in the decrease of the helper T-cell (CD4 + ) population. Enteric pathogens in HIV-associated diarrhea are, for example, Cryptosporidium, Amoeba and Campylobacter species.

    Bovine Colostrum is the first milk the suckling calf receives from the cow. It is rich in immunoglobulins, growth factors, antibacterial peptides and nutrients. It supplies the calf with a passive immunity before its own active immunity is established. ColoPlus is a product based on bovine Colostrum and is designed for slow passage through the gastrointestinal tract, as well as having a high nutritional value. The aim of the study was to investigate whether ColoPlus given orally can influence the severe diarrhea associated with HIV infection.

    MATERIAL AND METHODS: The study was carried out at Braithwaite Memorial Specialist Hospital, Port Harcourt, Nigeria. Thirty patients with HIV-associated diarrhea were included in the study. The patients were treated with ColoPlus for 4 weeks in an open-labeled non-randomized study, after an observational period of one week. After a post-treatment period of another two weeks, treatment with anti-HIV drugs was started, if deemed appropriate. The effects on the frequency of stool evacuations per day, on body-weight, fatigue, hemoglobin levels and CD4+ counts before (week 1) and after treatment with ColoPlus (week 7) were measured.

    RESULTS: There was a dramatic decrease in stool evacuations per day from 7.0+/-2.7 to 1.3+/-0.5 (+/-SD), a substantial decrease in self-estimated fatigue of 81%, an increase in body-weight of 7.3 kg per patient and an increase in CD4+ count by 125%. CONCLUSION: ColoPlus may be an important alternative or additional treatment in HIV-associated diarrhea.

    Natural Protease Inhibitor that blocks HIV found in Colostrum and in human saliva (but lacking in infants saliva)

  • Wahl SM, McNeely TB, Janoff EN, Shugars D, Worley P, Tucker C, Orenstein JM.
  • Oral Dis. 1997 May;3 Suppl 1:S64-9.
  • Laboratory of Immunology, NIDR, NIH, Bethesda, MD 20892, USA.
  • Despite the presence of HIV-1 in the oral cavity, transmission of the virus through saliva has not been proven. Consistent with these observations, we recently identified an endogenous 12 kD protein, secretory leukocyte protease inhibitor (SLPI), in saliva which blocks HIV-1 infection in vitro. Whereas other salivary proteins tested were inactive, purified native or recombinant SLPI inhibited HIV-1 infection of human monocytes at 100 ng ml-1. Levels of SLPI quantitated by ELISA in saliva from control and HIV-1 infected individuals exceeded this level, consistent with in vivo antiviral activity.

    As in saliva, levels of SLPI mRNA determined by Northern hybridization, and protein as assessed by immunohistochemistry in the salivary glands of control and infected populations were comparable. In contrast to adults, oral transmission occurs in infants, possibly due to their lack of fully developed salivary glands. To determine whether the inadequate antiviral protection might be compensated for by maternal sources, we evaluated breast milk samples obtained 6 months postpartum. Levels of SLPI were significantly lower than in saliva and not sufficient to provide antiviral protection in contrast to colostrum samples in which SLPI levels were equivalent to those in saliva and able to inhibit HIV-1 infection when tested in vitro.

    These data suggest that breast milk may provide transient antiviral activity in the newborn, but that this maternal source of SLPI is of insufficient duration to maintain protection against mucosal transmission of the virus over time. The high functional levels of SLPI in saliva and the low levels in mature breast milk correlate with negligible rates of HIV-1 transmission by saliva and higher rates by breast feeding.

    Some thoughts on Colostrum

    M Konlee

    Colostrum, like whey protein, contains lactoferrin, a known inhibitor of viruses and bacteria. Colostrum also contains about 30 to 35% immunoglobulins and the predominant one is IgA. IgA is needed to protect the intestinal membranes from viruses, fungi, bacteria and other foreign antigens. Since more than 80% of our immune system is in the digestive tract and most of the HIV in the human body is also there, IgA can help block the binding of HIV to immune cells (1, 2). It seems plausible that colostrum can help increase CD4 counts, decrease the viral load for HIV, CMV, EBV, HCV and many other viruses and increase energy levels in HIV seropositive individuals, cancer patients and in persons with chronic fatigue syndrome.

    The effectiveness of the treatment may depend on the amount of colostrum used daily. Colostrum should also help in treating colitis, irritable bowel syndrome and in autoimmune conditions. Its applications in treating a wide range of health conditions are probably broader than we understand or appreciate at this time.


  • 1. Neutralization of human immunodeficiency virus type 1 (HIV-1) mediated by parotid IgA of HIV-1-infected patients.
  • Moja P, Tranchat C, Tchou I, Pozzetto B, Lucht F, Desgranges C, Genin C.
  • J Infect Dis. 2000 May;181(5):1607-13. Epub 2000 May 8.
  • 2. Secretory IgA specific for a conserved epitope on gp41 envelope glycoprotein inhibits epithelial transcytosis of HIV-1.
  • Alfsen A, Iniguez P, Bouguyon E, Bomsel M.
  • J Immunol. 2001 May 15;166(10):6257-65.
  • Many natural products contain both immune based and antiviral components. These include Colostrum- a SLPI protease inhibitor source with iron binding lacto-ferrin and with high concentrations of IgA that inhibit HIV and other viruses, Curcumin is an HIV integrase inhibitor with anti-inflammatory properties and Hyssop is an HIV fusion inhibitor. Composition A, raw garlic and neem would also contain both immune-based and antiviral components. Studies show that increasing glutathione inhibits HIV, hepatitis and numerous other viruses.

    Beta glucan (Chisolm Biological Labs) helps immune response in viral and bacterial infections

    Richfield WI: A reader reports that she has been using beta glucan for the past 7 years. She says she used to get colds, sore throat and sinus infections frequently. The beta glucan helps prevents these outbreaks and also speeds up recovery time.

    Beta Glucan derived from the common yeast cell wall (Saccharomyces Cerevisiae) is a known potent macrophage stimulator. Macrophages attack and destroy viruses, fungi and bacterial infections. Beta Glucan acts as a cross regulator of Th1/Th2 immunity and improves the function of both humoral and cell mediated immunity. Dosing: 100 or 200 mg daily can have profound benefits for the immune function of macrophages and white blood cells. Beta 1, 3 D glucan has been reported to help the immune system in its battle against viral, fungal, bacterial infections as well as various forms of cancer.

    Immune recognition. A new receptor for Beta-glucans

  • Brown GD, Gordon S.
  • Nature. 2001 Sep 6;413(6851):36-7.
  • The carbohydrate polymers known as beta-1,3-d-glucans exert potent effects on the immune system - stimulating anti-tumour and anti-microbial activity, for example - by binding to receptors on macrophages and other white blood cells and activating them. Although beta-glucans are known to bind to receptors, such as complement receptor 3 (ref. 1), there is evidence that another beta-glucan receptor is present on macrophages. Here we identify this unknown receptor as dectin-1 (ref. 2), a finding that provides new insights into the innate immune recognition of beta-glucans.

    Increased efficiency of Lewis lung carcinoma chemotherapy with a macrophage stimulator-yeast...glucan.

  • Kogan G, , et al
  • Int Immunopharmacol. 2002 May;2(6):775-81.
  • The efficiency of chemotherapy of Lewis lung carcinoma with cyclophosphamide was affected by administration of the water-soluble yeast polysaccharide derivative--carboxymethylated (1 --> 3)-beta-D-glucan (CMG)-a well-known macrophage stimulator. It was found that while cyclophosphamide showed 57% growth inhibition of the intramuscular tumor implants in comparison with the control group, its combined administration with CMG led to 75-90% inhibition. Similarly, increased inhibition of occurrence of lung metastases (up to 92-94%) was observed using the combined application of the two compounds.

    Published quarterly. Copyright 2007- to subscribe to this newsletter, send a donation to Keep Hope Alive, PO Box 270041 West Allis, WI 53227. Phone 414-751-4998 Note: You can also read this and other past newsletters online at

    Keep Hope Alive Forum

    A plan to fund Social Security for the next 60 years, and to sustain or increase benefits without raising taxes or the retirement age.

    Conrad LeBeau

    Social Security income for retired senior citizens became a reality when President Franklin D Roosevelt signed the Social Security Act on August 14, 1935. Social Security taxes were first collected in January 1937 and the first payments were made later that month. Medicare to help retirees with medical expenses first became law in July of 1965.

    For the past 72 years, Social Security has been a great success, providing benefits to retired citizens, their spouses and dependents and those who are disabled. For 61 of the past 72 years, it has run a surplus. The assets of the surplus with interest stood at slightly over 2 trillion dollars at the end of 2006. In spite of the surplus, the income from social security taxes and the benefits paid out are expected to break even around the year 2016. By 2016, the surplus with interest in expected to reach around 4 trillion dollars.

    The Social Security Surplus

    This surplus and assets have been created over the past several decades when Congress authorized the US Treasury to sign bonds and notes of obligation with interest payable to the Social Security Adm OASI and DI trust funds. In turn, Congress used the surplus funds collected from social security payroll taxes to fund general expenditures of the federal government. The obligations owed to the social security trust funds are a significant part of the national debt.

    In 1975, cost of living increases (COLAS) were added to the benefit structure of social security. In the past several years, cost of living increases added to social security benefits paid out have been less than the total actual cost of living expenses and did not include cost of living increases for food and energy. This decrease in benefits paid out has the effect of gradually reducing the purchasing power of retirees. This is stealing from our senior citizens and is inexcusable when we had an 80 billion $ surplus last year in available social security funds.

    If the Social Security system will have assets of 4 trillion in 2016, why the concern about reforming social security

    The concern comes mainly from Wall St and the financial centers of the privately owned banking system. Some members of Congress also wonder how constituents will react if payroll taxes are raised or benefits are cut. Today, younger workers wonder if money will be available when it is their turn to retire.

    When the Social Security Adm starts selling its bonds back to the federal government, it would fund the system sometime past the year 2043. Some Congressmen are concerned that the debt owed to the financial markets will then increase by 4 trillion over time as the government borrows from Peter to pay Paul. Fortunately, there are other and better options.

    There are other options besides increasing the retirement age, increasing payroll taxes or increasing the interest bearing national debt.

    There are two main solutions to the projected future deficit.

    1. Eliminate income cap not subject to FICA taxes. First is to eliminate any ceiling on wages that is taxable under FICA. Today the ceiling on wages that are subject to social Security taxes is around $90,000 annual income. If this cap were eliminated, then persons making $90,000 to one million a year of more would pay social security taxes on all this income. This would substantially increase revenues to the Social Security Adm.

    2. Federal Reserve bailout: Second, Congress can order the Social Security Adm to sell the interest bearing bonds it holds to the 12 Federal Reserve Banks requiring each bank to purchase 6 billion dollars worth of these bonds each year. While Congress has already ordered the Federal Reserve banks to turn over their profits to the US Treasury at the end of each year, Congress can also order the Federal Reserve banks to turn over to the US Treasury both the principle and interest on all bonds purchased from the Social Security Adm as each bond is paid in full during the fiscal year.

    An Act of Congress could convert the 4 trillion dollar liability it will owe to Social Security fund in 2016 into an asset and use this asset to reduce the national debt

    The conversion of a debt into an asset can only occur by an Act of Congress. To some extent this has already occurred on a limited scale. The 12 Federal Reserve Banks have purchased and today own several billion of dollars in US Government bonds. However, by law, the profits made by each Federal Reserve Bank are returned to the US treasury at the end of each year. Because the interest paid to the Federal Reserve banks is returned to the US Treasury each year, the US bonds held by the Federal Reserve Banks are really the eqivalent of zero percent interest bearing notes.

    The amount of money the Federal Reserve returns to the US Treasury could be increased by enacting a law that prohibits the Federal Reserve Banks from destroying the principle that is paid on Social Security bonds by the US Government and requiring each Reserve bank to turn over to the US Treasury both the principle and interest that it has received as payment. In this process, the money moves from the US government (the debtor) to the lender (the Federal Reserve) and then the money is recycled back to the US Gov't as an asset instead of a loan.

    A debt can become a future asset when the person or entity (bank) receiving payment for it gives it back to the person or entity from whom it was received. This can occur because Federal Reserve Banks do not owe this money to a third party (depositor). Federal Reserve Banks are authorized by Congress to create money by expanding credit. The Federal Reserve is the nation's wholesaler of money. When the Federal Reserve writes a check it is creating new money. This is because the check is not drawn against another bank. It is simply added to the deposit ledgers of any bank as a book entry deposit. When Federal Reserve banks lend "credit" as "money," it is also called "checkbook money". "Credit" can be defined as "a promise to pay money that circulates as money".

    About 95% of the nation's money supply is credit and it is stored in the hard drives of the banks computers as a bookkeeping entry. Thus, most of the nation's money supply is stored as numbers called "dollars" in the hard drives of the bank's computers. Cash, which comprises coins and currency, is about 5% of the nation's money supply and is stored in vaults.

    Checks, bank drafts or electronic funds as credit instruments are redeemable for cash according to public demand. Cash is not needed to redeem all credit instruments, as the public prefers to use credit (cards or debit cards, checks) for making purchases instead of using cash. Thus, in fractional reserve banking, about 100 dollars in credit or loans can be made available for each 5 dollars in available cash.

    Federal Reserve banks can redeem the checks they write as they are authorized to purchase currency from the Bureau of Engraving for the cost of printing and there are no limits on how much currency they can purchase.

    How long would it take for the Federal Reserve Banks to buy 4 trillion dollars worth of Social Security bonds?

    If all twelve Federal Reserve Banks each purchased 6 billion dollars worth of bonds from the Social Security Adm beginning in 2016, it would take over 55 years to complete all the purchases of these notes and this would help provide funds to keep social security solvent until the year 2070 or longer.

    In addition to the solvency plan presented here, Congress needs to restore the full cost of living benefits to social security recipients including food and energy costs and the floor on minimum payments needs to be increased as follows:

  • For persons retiring at
  • 62 years of age - $700 a month minimum
  • 63 years of age -$800 a month minimum
  • 64 years of age -$900 a month minimum
  • In addition, when anyone reaches the age of 65 years, they should receive $1000 a month minimum even if they retired in an earlier year.

    In addition, all persons receiving disability or who are on Part D Medicare should be allowed up to $400 a month in dietary supplements paid by Medicare that is prescribed by a health care professional. This should include also drugs that are used for off-label (non-FDA approved) purposes and any other low cost therapy that is deemed to be safe and effective by the prescribing physician for the prevention or treatment of human disease.

    To all concerned citizens: if you agree with these proposals, send a copy of this article to all the Presidential candidates and to your US Senator and US Representative and ask them to introduce legislation to implement this plan.

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