( – promoted by buhdydharma )
The Austerity Rhetoric is ramping up.
The National Debt is the Issue of the Day.
How in the world are we going to pay for it — especially for all those Baby-Boomers with the audacity to dare to Retire, after working all our lives;
After paying all our lives into the Social Security Trust Fund, as our Govt required us to do.
HOW Dare We — actually expect the Govt to Pay the Benefits that we were promised? Oh the Nerve!
Here’s the sleight of hand Hoodwink that the GOP Loan-Sharks are preparing to pull off — pay attention, because it’s a classic trick of misdirection — and it goes by fast:
It is the Federal Government that has the Legal Obligation —
to payback the Social Security Trust Fund
NOT the other way around !
It is the Federal Govt that raided OUR Retirement “Cookie Jar” —
and it is the Federal Govt that needs to replace them.
What’s left of OUR “Cookies” should be permanently off the Table.
In other words, All cuts to SS Benefits should be OFF the Table.
THEY owe us, WE don’t owe them.
THEY = the General Fund of the Treasury of the U.S. Govt.
WE = the “investors” and security holders of the Social Security Trust Fund.
They borrowed the Trust Funds to pay for ‘God knows what’ — (what say you W.?)
And THEY need to figure out how to repay those Trust Funds! — (time to Tax the Wealthy, anyone?)
Now, for those trap-drop props, that the GOP wizards don’t what you to see:
The Impact of Social Security on the National Debt
By James D. Agresti and the Staff of Just Facts — Sep 1, 2001
For this reason, some people refer to the bonds in the Social Security Trust Fund as “worthless IOU’s.” This characterization is inaccurate. The bonds in the Trust Fund are as real as any U.S. Savings Bond that you might happen to own. The Social Security program loaned this money to the federal government and has a legal right to receive it back with interest.
This can be a difficult concept to grasp, because it doesn’t make sense that the federal government owes money to a federal program like Social Security. The key to keeping this straight in your head is to be aware of the following facts:
1) The Social Security program levies its own taxes.
2) The finances of the Social Security program are separated by law from the rest of the federal government.
Did you catch that? (the Rules of Physics at work, here.)
“The finances of the Social Security program are separated by law from the rest of the federal government.”
“Social Security [us] has a legal right to receive it back with interest [from them — the General Fund Borrowers].”
Funny we don’t hear the Talking Heads talking much about those little details, do we? Maybe they’re in on the Trick, eh?
But does the Federal Govt really “raid our Cookie Jar” — to fund things like endless wars, and Tax give-aways to the Wealthy ?
I don’t know, let’s inspect that “Balance Sheet” Magic Wand, shall we …
Social Security Online — Trust Fund Data
Trust Fund FAQs
How are the trust funds invested?
By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government. All securities held by the trust funds are “special issues” of the United States Treasury. Such securities are available only to the trust funds.
In the past, the trust funds have held marketable Treasury securities, which are available to the general public. Unlike marketable securities, special issues can be redeemed at any time at face value. […]
What happens to the [FICA] taxes that go into the trust funds?
Tax income is deposited on a daily basis and is invested in “special-issue” securities. The cash exchanged for the securities goes into the general fund of the Treasury and is indistinguishable from other cash in the general fund.
And what does the General Fund do with those IOU Cookies? (our Cookies for Cash.)
Duh — They Eat them!
AND Who has the Legal Obligation to Repay those Cookies, with extra frosting?
Fast Facts — Trust Fund/General Fund
Frequently Asked Questions (FAQ)
24.4 Surpluses now accumulating are invested in special issues of treasury securities, which earn interest. Who pays the interest? Is this not the same as writing yourself an IOU?
The investments of the trust funds in government securities are an investment in the same way that the purchase of government securities by private investors is an investment that earns interest. In both cases, the General Fund of the Treasury pays the interest.
24.5 Please clarify the earlier question about the federal government owing the trust funds over $600 billion. Is this true?
The government pays interest to the trust funds. The government owes the money which the trust funds have loaned to it and will have to repay it as the securities come due.
There’s the magician’s dirty little secret — it is the General Fund (and by default the General Taxpayer) that has the Problem — NOT the Social Security Trust Fund and its Bond Holders — the Workers of America! (aka those dreaded Boomers.)
George W. Bush and Company borrowed Trillions from the Trust Fund — and gave away Trillions to Millionaires — aka his base.
Now it’s time for his base to “pony up” and pay back those special IOU’s — but being the natural-born Loan Sharks that they are — they are looking for even more creative, deceptive ways to “fudge the deal”.
And the National Dialog Spin Machine (aka the Magician’s Assistants — our brain-dead Media) are helping them to get away with this Grand new trick of Trust Fund Misdirection …
— The Trick: that of Blaming the Victims of the Heist — and NOT the IOU Borrowers themselves.
What ever happened to the “Full Faith and Credit of the U.S. Govt” that is supposed to be “backing up” those Special Securities — that the General Fund had a grand ole time borrowing from OUR Trust Fund Lockbox ??
Why are OUR Retirement Benefits STILL ON THE TABLE — When all we did is “Float W. the Loan” in the first place?
They blew the funds, not us.
Al Gore was Right — the Social Security Trust Fund did very much need a “Lock and Key”. Govt Spending habits being what they are.
Perhaps IF Al Gore would have called it “Our Cookie Jar” with a “Lock and Key” — instead of his “Lockbox” — Perhaps history would have played out differently … ?
Language and explaining complex things, using simple concepts — MATTERS! … Big Time.
Otherwise you just may never see it — the next time someone with slick talking points, manages to once again “pull the wool over your eyes” …
… raising the age 70 — that’s not that old — shoot were all living longer these days, anyways, aren’t we? It’s just a hop, skip and a jump. No Problem!
Abra ca dabra!
Pay No attention to those suits behind the curtain. They got this. Don’t THEY always.