Marti Oakley (c)copyright 2011 All Rights Reserved


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It appears that some of our so-called grassroots advocates have jumped ship and now routinely parrot government talking points, helping to drive public opinion away from actual facts and towards what the government is desperate to have the public believe. This is quite evident in the recent article put out J.D. Heyes of Natural News regarding the condition of Social Security and Social Security Disability. Big government gone wild: Social Security on the verge of insolvency

Its hard to know where to start in highlighting the evident misrepresentation of the condition of Social Security (& disability) that occurs in this article.

First off, let me begin by saying that Social Security Disability is funded by direct and separate taxation under your FICA investment.  It is not something added onto Social Security that is not individually funded.  Disability, just as general Social Security produces a huge surplus each year……which is immediately seized by the federal government and used for god knows what. 

Heyes points out that the retirement of boomers and massively high unemployment are strapping Social Security (& disability).  This is true.  What Heyes does not tell you is that the federal government has now stolen 3.1 trillion from the non-existent “trust” fund and has no way of paying it back to the investors (American workers) who contributed over a lifetime of work to the fund.  Heyes, like the government, wants you to believe that the federal government is magically paying Social Security out of its own pocket.  This is a blatant deception and incidentally the same deception promoted by the government.

Heyes implies that this is some form of welfare by referring to Social Security as an entitlement, without ever mentioning that whatever money is deposited in the IMF on behalf of that revenue stream was taken in the form of FICA taxes as an investment in a national retirement fund. 

Heyes quotes:

“We have known for more than a decade that Social Security was going broke. As far back as 1997, the Brookings Institute, among many other think tanks, predicted that an enormous amount of seniors born in the years following World War II were about to retire, and that doing so would put an equally enormous fiscal strain on Social Security.”

Well of course they know it will go broke!

These think tanks knew it was going broke because they also knew there was no intention to stop raiding Social Security of its funds.

What Heyes, the Brookings Institute and many other think tanks never acknowledged was the fact that all FICA taxes are deposited into the IMF as part of the US general fund.  There is NO TRUST FUND and NO INDEPENDENT US TREASURY.  None mentions the massive surplus that Social Security and Disability produce each year; a massive surplus that has been used to finance wars of aggression, to cover revenue losses from giving welfare tax breaks to the uber wealthy and corporations and to help fund the 124 billion federal expense supporting illegal immigrants.

Any unused funds (surpluses) are immediately consumed by the Federal government for anything and everything other than what those dedicated taxes were collected for.  The same thing is true for the Airport “trust” fund, the Highway & Transportation “trust” fund and any fund or program administered by the federal government and funded through various forms of dedicated taxation; all of it dumped into the general fund for the US at the IMF.

***Note***

During Bush the Dolt’s first term, stolen surpluses from the FICA revenue stream were reassigned as “generated revenue” in the simplified and unified budgets.  This newly designated generated revenue was then shown to the public as evidence that tax breaks for the uber wealthy and corporations was a success.  The public never knew that the increased revenue claims were the result of the theft of FICA taxes that had simply been renamed.

Heyes continues:

“New estimates by Congress aren’t encouraging; they forecast that the trust fund that supports Social Security will run out of money in just a few short years, by 2017, meaning the system will be unable to pay full benefits by then.

The long-term prospects for this aren’t any better. In about 20 years, Social Security’s retirement fund will run out of funds too, meaning it also won’t be able to pay full benefits.”

Notice the use of the word “support” in relationship to the non-existent trust fund.  This is obvious psychological conditioning to embed into the public consciousness the fallacy that there is a trust fund and that somehow that fund is government supported.  The absolute opposite is true. 

WE fund them, they don’t fund us!

The workers of America fund Social Security through their FICA tax investments. The Federal government has, through successive administrations since the Johnson Administration (Johnson made SS part of the general fund to help pay for Viet Nam) converted all surpluses from Social Security into “general funds”, leaving 3.1 TRILLION dollars in worthless I.O.U.s in the form of “special security treasury bills” in lieu of the cash, on deposit with Social Security.  The Federal government DOES NOT fund Social Security; the workers of America fund the Federal government.  Not only are FICA taxes used to fund SS, but also taxes on Social Security benefits paid out in many cases.  

All claims about potential insolvency, when it will become insolvent, are all premised on the fact that the federal government, regardless of which wolf is guarding the Social Security house, will continue to embezzle the investments of American workers and use those funds for everything and anything other than what those investments were meant for.  Not one of these think tanks, nor Heyes himself talks about Social Security solvency if the federal government stopped using FICA taxes as their personal cash cow. 

Heyes claims;

” The best way to prevent the system from bankrupting itself is to reduce the amount of benefits it pays.”

Wrong again Mr. Heyes.  Social Security isn’t bankrupting itself.  The federal government is bankrupting it as fast as they can.  This is in an effort to discharge an internal government debt for which they have no possible means of repaying or making good on the worthless treasury’s.  The fact is, they never did intend to pay the 3.1 TRILLION back to Social Security which is evidenced by the fact that at no time was there ever a plan developed for repayment.  

Also a concern in discharging this internal government debt to invested American workers is the authority of Social Security to force the Federal government to borrow and replace the funds they have stolen from these investments, should Social Security run short.  This is the “unfunded liability” the government is so hysterically afraid of.  

Obama and congress recently gave us a so-called “tax holiday”.  Did they decrease your federal or state taxes?  No they did not.  They decreased your FICA tax by 2 % and then went to the general fund and took that 2% out of it and placed it into Social Security.  Now first off, why would you decrease the FICA investment in this fund if it is in fact going bankrupt?  And then, turn around and take tax revenues collected from the same American workers you stole the money from, to replace the lost 2%?

Answer:

This was a bait & switch maneuver.  The joke was on the American workers.  The 2% reduction in FICA taxes was not even noticeable in most cases.  But, it allowed the government to appear they were trying to help America while at the same time taking tax revenues to cover the loss from the very same people they were conning. 

Tapping the general fund under special drawing rights at the IMF allows the government to avoid being forced to publicly borrow the money they have stolen from Social Security, and to establish the precedent of using the accruing surplus from the Social Security revenue stream to make it appear they are paying the fund back.

It seems to me that if various sites and writers want to parrot government talking points they should just come out and be honest about their pandering to government and tell who provided them with the talking points they are using.  As for the article in Natural News, you could have gotten the identical information off of any number of government websites or from recent Washington news papers who also parroted government Social Security talking points.

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Resources:  

MexicoTotalization Agreement

http://www.tscl.org/NewContent/Totalization_Agreement.pdf

GAO pdf.  Proposed Totalization Agreement with Mexico Presents Unique Challenges http://www.gao.gov/new.items/d03993.pdf 

SSI Fund      http://www.ssa.gov/ssi/

Special Treasuries Securities                                                                                              http://www.ustreas.gov/ffb/

Social Security funds stolen by government https://ppjg.wordpress.com/2010/07/16/social-security-money-stolen-by-government/

The Drive to eliminate Social Security in America https://ppjg.wordpress.com/2010/02/25/the-drive-to-eliminate-social-security-in-america/

The real unfunded liability —the federal government 2008 https://ppjg.wordpress.com/2008/10/25/the-real-unfunded-liability%e2%80%a6the-federal-government/

Desperate to kill Social Security https://ppjg.wordpress.com/2011/08/02/why-the-district-of-criminals-is-desperate-to-kill-social-security/ 

CRAPitalism/ part 2         https://ppjg.wordpress.com/2011/07/31/crapitalism-liquidating-the-elderly-part-2/

Can you spare another trillion https://ppjg.wordpress.com/2011/02/21/psssst-social-security-can-you-spare-the-gov-another-trillion/

Social Security is not a welfare entitlement https://ppjg.wordpress.com/2011/02/17/social-security-is-not-an-entitlement-program/

 http://www.naturalnews.com/033408_social_security_bankruptcy.html