Tuesday, July 19, 2011
From Reagan to Obama, fraud explains why they are now trying to get rid of Social Security
“The 1983 Social Security amendments enacted hefty increases in the payroll tax in order to generate large future surpluses.
As soon as the first surpluses began to role in, in 1985, the money was put into the general revenue fund and spent on other government programs. None of the surplus was saved or invested in anything. The surplus Social Security revenue, that was paid by working Americans, was used to replace the lost revenue from Reagan’s big income tax cuts that went primarily to the rich.
President Obama is the fifth president to participate in the great Social Security scam, but he has the dubious distinction of being the president, on whose watch, the Social Security time bomb, activated 25 years ago by President Reagan, will run out of time.”
by Larry Geller
So all that Social Security money, which is supposed to have a surplus in the trillions, is safely stored away in some kind of trust fund, waiting to be used. Right? Wrong. But most people won’t find out the truth.
Check out this article for starters.
How Your Social Security Money Was Stolen – Where Did the $2.5 Trillion Surplus Go? (AmpedStatus, 7/19/2011)
Wasn’t it strange that Obama announced that he cannot guarantee that Social Security checks would be mailed out August 3rd unless the debt ceiling is raised? What about that trust fund, anyway?
Wait a minute!” some readers will say. Hasn’t Social Security been receiving surplus revenue ever since the 1983 payroll tax hike? Isn’t there supposed to be approximately $2.5 trillion in the Social Security trust fund? The answer to both questions is yes. But there is a problem. Every dollar of that surplus Social Security revenue has already been spent by the government. Much of it went to fund wars in Afghanistan and Iraq. The rest has been spent on other government programs.
The American people were not supposed to find out about the great Social Security scam for another six years, and the government was hoping to continue to receive surplus money from the Social Security contributions of working Americans for at least that long. But the inevitable day of reckoning has come, six years sooner than anybody expected, because of the severe recession. And the government of the United States has been caught with its hand still in the empty Social Security cookie jar.
So why are Congress and Obama trying to get rid of Social Security? Because then they can just keep the money and not have to repay the “trust fund.”
The American people still don’t know about this.
Spread the word.
Obama has to be one of the bigger scams(disappointments) played on the American citizen. Just think billionair Ophra played her role well, promoting Obama. Ophra's program ran on billionair Murdocks station. Reagan, an actor, played his role well, destroying health care.
Social Security by law purchases Treasuries which makes up the Trust Fund. Those Treasuries are backed by the full faith and credit of the United States Government. Like all Treasuries the United States government will make good on the Social Security trust Fund Treasuries. How do we know this? Just look at the interest rates, if people or governments felt US Treasuries were risky rates would be rising, they're not. Social Security is not a scam, the real scam is when Wall Street tells middle class Americans that Social Security is a scam and they (Wall Street) will take care of that money for us.
Old Diver, let me suggest some reading that explains the treasury bonds. Google suggested many articles. I'm not sure these are the best, and indeed one comes from the Heritage Foundation. So I'm not sure how much to trust these articles. But have a peek. Those bonds are IOUs, according to the several articles.
Misleading the Public: How the Social Security Trust Fund Really Works
Social Security's running out of time
Social Security IOUs stashed away
Those three articles are totally misleading. All treasuries are IOU's and everyone of them will be paid back by the US Treasury. China, Japan, Europe etc will receive their investments in treasuries back when it comes due. This is no different from the treasuries Social Security buys from the Treasury. The only difference between the treasuries we can buy and social security buys is the ones social security buys cannot be traded like stocks. In other words China can sell it's U.S. treasuries to someone and the social security administration can't. Because of this the right wing media is labeling these special treasuries. This is total nonsense, the US Government will pay these treasuries out no matter what kind it is.