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Posts Tagged ‘Social Security Trust Fund’

The corporate news pounced on the latest report issued by the Board of Trustees of the Social Security Trust Fund. CNBC News interviewed Michael Tanner of the Koch Brothers funded Cato Institute. Tanner was dumb enough or dishonest enough to say, “Every bond redeemed from the Social Security Trust Fund has to come out of the general revenue, so we’re actually increasing the federal deficit in order to pay off social security.” What a lie, and in many ways.

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The Social Security Trust Fund has a $2.6 trillion surplus. The Trust Fund purchased US Treasury bonds and collects about $160 billion in interest a year. Bonds are loans. The US government borrowed the $2.6 trillion from the Trust Fund, and it will soon be time to pay that money back to the Trust Fund. That will not add to the deficit at all since the Trust Fund did not need to invest in the bonds, but it was a prudent thing to do to collect the interest. But lets get to Tanner’s lie; the US government issues and sells new bonds to pay for any bonds coming due. Only interest is paid from the general funds unless there is a budget surplus that allows for paying down the total deficit. The folks at CNBC News made certain not to question Tanner’s lie. That’s because they want to keep us ignorant.

Second, the Chinese government has trillions of dollars invested in US treasury bonds, as does Wall Street. When the US treasury bonds held by the Chinese or Goldman Sachs, or US hedge funds come due, nobody says that by paying its debt, the US government is adding to the deficit. Why is a different standard applied to Wall Street and Chinese investors on the one hand, and the Social Security Trust Fund on the other hand? The answer, of course, is CNBC wants to keep us ignorant. The Social Security Trust Fund has not contributed a penny to the US deficit, but they don’t want us to know that.

The Trustee report mentioned the coming of a deficit for the Trust Fund in 2034, which will result in payment reductions for retirees of approximately 16 percent, unless something is done to plug the gap. Ethan Wolff-Mann, reporting for Yahoo News, claimed “A root cause for the financial woes for Medicare and Social Security is the aging baby boomer population.”

That’s another lie meant to distract you from reality. Tens of millions of US jobs that paid into the social security trust fund have been exported to low wage nations such as China. The difference between the old US wages and the new Chinese, Vietnamese, Pakistani, and Mexican wages have all gone into the pockets of the rich via higher corporate earnings, rising dividends, and surging share prices. Capital gains from the sale of assets (such as corporate stocks and bonds), and dividends are exempt from social security taxation. The rich, in other words, are not paying social security taxes on the trillions of dollars they have stolen from the rest of us. That’s why there is an impending deficit in the Trust Fund.

So the easiest way, and morally Jesus Christ way, to offset these government policies that have stolen from the Trust Fund is to have a graduated Social Security tax on dividends, as well as on capital gains derived from the sale of stocks and bonds. Of course, a Social Security tax on stock and bond transactions could also achieve the desired effect.

In either case, or in both cases should they be legislatively enacted, the Social Security Trust Fund would be solvent into infinity and most likely a significant raise can be provided to beneficiaries, which would then strengthen the US economy by increasing the demand for goods and services.

Steve Ruis has pointed out, “Note that the SS Trust Fund didn’t choose to buy US Treasuries, it is required to invest all excess funds in US Treasuries by an act of Congress! Some critics have referred to those treasuries as “worthless paper” when trying to undermine the SS system. Amazing!”

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The Social Security Trust Fund has more than $1.5 trillion in surplus. This money is invested in in US treasury bills. Those bills pay the trust fund around $120 billion in interest annually. Since 2010, as the baby boomers retire, the trust fund has paid out more money in benefits than it takes in via tax dollars. So the corporate propaganda machine, such as the Oregon newspaper, on behalf of the 1 percent, has thrown out fear in the form of disguised news and proclaimed the trust fund is going broke because there is another yearly deficit. Naturally, the editors don’t want you to know about that $120 billion a year coming into the trust fund, because if they did count that money, they’d strangely discover the trust fund took in more dollars than it paid out. Ergo, there has been a yearly surplus, not a deficit as the propaganda machine has repeatedly and falsely proclaimed.

It is true that some so-called experts expect that $1.5 trillion to evaporate into nothingness about the year 2040 because the baby boomers will be retired. But that’s what the task force appointed by President Ronald Reagan set out to do thirty years ago. As of 2040, the trust fund will still be taking in sufficient tax dollars to pay out 86 percent of forecast benefits. One way to close the gap and pay 100 percent of benefits is simply to do what Senator Sanders suggests above.

And why not do that? The rich have reaped all the benefits of federal economic legislation during the past 34 years. The Koch Brothers and others declared war against the middle class, and against the United States, decades ago, and via legislation and the corruption of government, they’ve redistributed massive amounts of income and wealth from the 99 to the 1 percent since 1981.

It’s time for a little pay back. And thank you President Reagan.

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Thank you corporate press for making up down in the USA. Quite naturally, the corporate presses refuses to point out that grandma’s social security check comes out of a trust fund with a $2.7 trillion surplus that is invested in US Treasury bills which collects $120 billion a year in interest. So why is Obama cutting payments to grandma when the money she receives doesn’t have anything to do with the deficit? This shows how corrupt the congress and the man in the white house are, as well as the corporate press.

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There are ten facts that Wall Street President Barack Obama doesn’t want you to know about his proposed cuts to Social Security payments. He intends these cuts despite a $2.7 trillion Social Security trust fund surplus that earns $120 billion a year in interest. So why is Wall Street’s president cutting main street’s payments that people earned and paid into the system for instead of increasing taxes on millionaires and billionaires? Anyway, click on the link below.

Ten Facts Wall Street President Barack Obama Doesn’t Want You To Know About His Social Security Slashing Plan

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As of March 4 2013, Wall Street President Barack Hussein Obama was talking to Republicans about cutting Social Security payments to your grandparents in order to preserve Big Oil‘s $52 billion annual federal entitlement program, and also of finding ways of making the affluent richer by pretending to do things he has no intention of doing. He’s also negotiating to reduce Medicare.

As the president knows, the Social Security Trust Fund has a surplus of $2.7 trillion that collects $120 billion a year in interest. Obviously, this program doesn’t contribute to the deficit at all. So why is Wall Street’s current president negotiating to cut what minimal payments the elderly receive from the program that they paid into?

Supposedly, the president is also negotiating raising taxes on the already rich, the top five percent, but like a good Wall Street Republican in disguise, which is the same as saying he’s a corporate Democrat, the president will most likely either cave in to Republican demands for no tax increases on the rich, or perhaps he will negotiate to ensure that enough tax loopholes exist in any agreement, that the rich pay no more in taxes that they do now, or more than likely, they’ll pay less. It’ll be good theater, no doubt.

Obama supports the Bowles-Simpson proposal as a means to reduce the deficit. Erskine Bowles is a member of the Board of Directors of Wall Street investment bank Morgan Stanley. Simpson is a former GOP senator from Wyoming and a big time supporter of Wall Street. That tells you all you need to know.

In other words, the president may be looking to redistribute income from your grandparents on their fixed incomes to the top 1 percent as a way of cutting the federal deficit. By the way, Republicans like this income redistribution scam since they play this game all the time.

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Perhaps the biggest corporate media myth about President Ronald Reagan is that he killed the Soviet Union. No, he did not.

President Harry Truman destroyed the Soviet Union. As president, Truman initiated the Containment Policy, which had been proposed by George Kennan, US diplomat. This policy was for the US to do whatever it took to keep communism from spreading. Kennan felt that doing so would cause the Soviet Union to collapse upon itself within fifty years. It did and right on schedule.

That’s right. A Democratic president set out to kill the USSR and he did it. Here’s how.

In the ashes of World War II, with the establishment of the Containment Policy, President Truman helped to establish the European Union, the North Atlantic Treaty Organization (NATO), the Southeast Asia Treaty Organization (SEATO), pushed the development of the nuclear bomb, stopped the communist advance in South Korea, established the perpetual war economy, ordered the Berlin Airlift, ordered the Marshall Plan which saved Western Europe from a communist takeover, established the Truman policy which saved Greece and Turkey from communist takeovers. The list goes on and on and on.

What did President Reagan do to bring down the Soviet Union? He ordered the continuation of a military buildup that had begun under President Jimmy Carter. Supposedly, according to right-wingers, trying to keep up with the buildup bankrupted the USSR. Doesn’t anybody think Carter should get credit for that? Or perhaps Al Queda should get credit because members of that group believe they broke the USSR by resisting the Soviet occupation of Afghanistan. But the truth is that the Soviet Union was teetering thirty years earlier.

Soviet GNP peaked in 1968. The Containment Policy was working. And Truman’s policy polished off the Soviet Union a few decades later.

If you want to give President Reagan credit for something he deserved, then thank him for saving the Social Security Trust Fund. That’s credit he really does deserve.

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As you can see from the graph, the Social Security Trust Fund owns more than $2.7 trillion of US debt, in the form of US Treasury bonds. Those are assets regardless of what the corporate media, politicians, members of the 1 percent, and other liars want you to believe. They also don’t want you to know that the Social Security Trust Fund collects $118 billion a year in interest from the bonds. So when the corporate news media reports that social security paid out $42 billion more than it received from tax receipts, it always says there is a shortfall in social security. That’s always a lie. What they don’t want you to know is that when there is a shortfall in tax receipts, there’s still a surplus coming in via the $118 billion a year in interest Social Security is earning on the US bonds it holds. Therefore, there is no shortfall, only a surplus.

It’s true that the Social Security Trust Fund will eventually dip into the surplus beyond the yearly interest and tax receipts it receives, but it was designed to do that back in the 1980s. Saving Social Security for future generations might have been the best thing Ronald Reagan did as president. And there are minor adjustments that can be made to save the system for hundreds of years.

As for the rest of the federal debt, the US government owes itself at total of $4.7 trillion. US investors own $4.1 trillion and the Federal Reserve owns slightly more than $1.5 trillion. $5.5 trillion worth of US bonds are owned by foreign governments. China owns only $1.3 trillion and Japan owns $1.16 trillion.

Idiots and liars who say that the Social Security Trust Fund is filled only with worthless IOUs must also believe that the leaders of Japan, China, the Federal Reserve and hundreds of other investors in Treasury bonds are stupid fools to invest trillions of dollars in worthless IOUs. Only liars suggest that.

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