Ten years ago in 2013, I wrote about the theft of Social Security. Theft by our government itself. Since I have written re the issue several more times describing the theft as rape and looting. This blog a reminder.
The numbers today are different. Increased. The $17 trillion overall U.S. indebtedness in 2013 now $32 trillion. The $2.7 trillion owed Social Security 10 years ago significantly more today. Factually, China no longer the U.S.’ second greatest creditor. China has been replaced by India.
The 2013 article:
The U.S. Government has stolen significant monies from the Social Security Trust Fund. Legally, of course.
The theft of Social Security is not understood by many. Even elected officials whose business it is to understand a federal
program as large as Social Security. Congress persons have standard talking points which are not true. They erroneously
represent to the American public that Social Security cannot support itself, that Social Security is broke, that Social Security
benefits must be cut, etc.
These Congress persons either know not that of which they speak, or are intentionally misrepresenting the facts.
You will find this column interesting. Guaranteed.
The United States is in debt to the tune of $17 trillion dollars. Who is the biggest creditor of the United States? To whom does
the United States owe the most money?
If you believe China, you are wrong. The largest creditor of the United States, the entity the U.S. Government owes the most
money to, is Social Security. Specifically, its Trust Fund. $2.7 trillion dollars and going up each day. The second biggest creditor is
China. The United States borrows money from China sometimes on a daily basis. The United States owes China $1.3 trillion.
Japan is close behind at $1.1 trillion.
The United States owes Social Security more than twice what it owes China. And more than its combined debt obligations to
China and Japan.
Social Security is not broken. It has worked well for 78 years. The United States government is broken. Government has been
grabbing money from Social Security for years, has never paid a penny back, and from what I can determine, has no plan to pay
any money back. It has been made to appear that Social Security is a noose around the neck of the United States economy. The
people have been told that Social Security benefits must be cut so the economy may survive! What bunk!
Lets look at the pertinent facts.
Social Security comes out of every Americans pay check. An employer contribution added to it. The Government pays not one
penny of the monies deposited in the Social Security Trust Fund.
The amount a person pays into the Trust Fund over the course of a working life time is substantially more than the benefit
derived. A worker pays into the Fund generally for 40-50 years. The monthly Social Security check received by the senior citizen
is peanuts in comparison.
Social Security has in every year of its existence taken in more than it has paid out. There is always a surplus.
The monies Social Security pays out include Old Age Retirement Benefits (the monthly check), Temporary Assistance for Needy
Families, Medicare, Medicaid, SCHIP, and SSI. All out of the Trust Fund. A surplus left over each year besides. Amazing! A terrific
program Franklin Roosevelt put in place!
One problem exists. There should be a hell of a balance in the Social Security Trust Fund. Revenues annually are more than
what is expended. There is no money in the Trust Fund, however. The Government has taken it all. Continues to do so. And
never pays a penny back.
In the early 1990s, President Bill Clinton and Speaker Newt Gingrich needed to balance the budget. They came up with the
genius plan to invade the Social Security Trust Fund. Most of the dollars represented surplus funds. Why leave all those
dollars sitting around unused.
Clinton and Gingrich decided they would “borrow” the surplus monies. In return, the United States would give the Trust Fund
what were termed “special service non-marketable U.S. Government bonds.”
What were these bonds? Nothing. They were non-marketable. They could not be used as collateral for a bank loan. No sane
person would buy them. The bonds were nothing more than IOUs.
Good for use as toilet paper in an out house.
It was thought that if and when things turned adverse for Social Security, the Government would redeem these bonds. In effect,
pay back Social Security. After all, the commitment of the United States and Congress is to meet the country’s obligations.
The Government’s ability to pay depends on its power to tax and/or borrow. Congress reflects neither past nor present desire
to pay. The Government refrains from even discussing these IOUs and their payment.
Where did all this surplus money go? How did certain Presidents and Congress spend the money. Basically, in three areas.
First, to make up for the reduced taxes on the rich. Thank you Bush 2. Second, two unpaid wars. Thank you again Bush 2.
Obama receives some credit also for not yet successfully ending the wars. Finally, other government programs that needed to
be funded and for which there might not be sufficient funding without invading the Social Security Trust Fund.
The process again is simple. Surplus Trust funds are borrowed by the United States. An IOU is given to purportedly secure
repayment. The money goes into the nation’s general fund to help pay for the tax cuts, wars, etc.
Certain economic experts have suggested a simple 30 year program to repay the IOUs would correct the problem and pay off
the $2.7 trillion still growing debt.
The real problem is no one cares about paying back. The Government took our monies and spent it like a bunch of college guys
out on a night on the town.
Social Security and Medicare should not be touched in any fashion. Other than to perhaps increase benefits. Another plan
might be for the Government to stop immediately removing funds from the Trust Fund. The surpluses would build up rapidly.
This sad scenario makes one wonder whether the Government even cares about the 99 per cent. It appears to me that all our
elected officials are concerned with are their images and friends. Not for anything or anyone else.
Make the rich richer and the poor poorer.
It seems to be working.