Monday, March 25, 2013

Congress Plundered Social Security, it's Broke and Congress Critters Panic

IN a shockingly rare piece of raw truth, The Huffington Post actually disclosed the truth about Social Security although in a weirdly defensive and convoluted way.

Pay Back the Money Borrowed From Social Security

While the "Puff Post" piece does indeed puff up the Dems and entitlements while vigorously defending the SS program, it does manage to make a very critical point.

Pay Back Social Security -- The Government Has Borrowed More from Social Security than any Other Entity or Foreign Government
...the government has borrowed more from the Social Security surplus than it has from any other source in the world, including China. As a result, Social Security now "owns" nearly 18 percent of the federal debt, making it the largest single holder of US debt. The government owes almost twice as much to Social Security as it does to China and Hong Kong.
Why aren't the opponents worried about paying back Social Security -- why aren't they talking about repaying this debt to the American people?  According to the U.S. Treasury Department's "Monthly Statement of the Public Debt of the United States" (9.30.10), the total debt was $13.562 trillion and was held as follows:  
US Holders of Debt
42.1 % -- US Individuals and Institutions
17.9 % -- Social Security Trust Fund 
6.0 % -- US Civil Service Retirement Fund
2.1 % -- US Military Retirement Fund 

Foreign Holders of Deb 
11.7 % -- Oil Exporting Countries
9.5 % -- China and Hong Kong
6.3 % -- Japan
1.4 % -- United Kingdom
1.3 % -- Brazil
1.6 % -- All other foreign countries 
House Republican Majority Leader Eric Cantor (R-VA) provided some insight to their Social Security views in a recent NPR interview when he was talking about Social Security and said, "We are going to have to come to grips with the fact that these programs cannot exist if we want America to be what we want it to be."
If the American public were asked about what priority should be placed on the debt owed to Social Security, we have no doubt that they would resoundingly say: "Pay Us Back -- pay back the money borrowed from Social Security!"
Fedzilla and Congress just haven't plundered Social Security to fund its wars and spending addiction, they also plundered the US Civil Service Retirement Fund and the US Military Retirement Fund.

The government has been plundering the Social Security Trust Fund ever since SS was created in 1935.  For many decades, the government dipped its grubby fingers into the SS Trust Fund because its payouts were far less than the receipts.  Congress literally stole the SS Trust Fund money and left a big pile of worthless IOU's that total at least $3 trillion.

In recent years, the situation has now reversed itself - SS outflows are exceeding inflows and over $200 billion in general revenue appropriations were required to fund the shortfalls in recent years, here, and pay recipients.

Congress has now lost the slush fund that it stole from the people and lavishly spent on wars, corporate welfare and other entitlement programs.  Now everybody is in an absolute panic.  However, the cruel reality of the Social Security system lingers.

Yes My Fellow Americans, Congress Really Did Steal Your Social Security
Moreover, Congress Critters have a pension plan that has been dubbed the “Golden Fleece Retirement” because “Congressional pension benefits are 2-3 times more generous than what a similarly-salaried executive could expect to receive upon retiring from the private sector”, according to the National Taxpayers Union. Congressional pensions are so generous that they can collect $5 million or more in benefits. These same Congress Critters who generally average millions in public pension benefits and who are already rich or exceedingly financially comfortable to begin with have no moral qualms whatsoever when it comes to robbing ordinary working stiffs of their Social Security checks.

There are other problems that differentiate the SS nightmare of today from the days when real surpluses accrued in the system. In 1950 there were 16 workers supporting every retiree on SS. These days there are under 3 workers to support every SS collecting retiree.
Social Security is destined to implode into full fledged generational warfare as the poor and middle class who are barely making it anyway are required to cough up even more money that they don't have to fund the Social Security shortfalls that were created by thieving Congress Critters.


  1. Lock Box is full of IOU's

    It is money that the government owes the people
    . So -- exactly where are they going to get that money?

  2. The government will print fiat money until the entire fiat monetary system implodes.


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