Social Security Part 2

HELLO WORLD

                        SOCIAL SECURITY PART 1         Published Dec. 30, 2010

                        SOCIAL SECURITY PART 2         Published Jan. 10, 2011

SOCIAL SECURITY PART 2

At the end of last week's message, "Social Security Part 1," I said that I would tell you of the solution to the present Social Security (SS) problem.  I will do that and I will also say why it won't happen unless ???

I want to preface the following by telling you that I am not at all interested in playing the blame game for the present SS mess.  I only want to get it corrected, in a way that is consistent with the original intent of the program.  SS is, without a doubt, the most successful government program that has ever been formulated.   We must not let it be scuttled.

Before I get into all that, however, I want to tell you about a very unusual man.  He is Dr. Allen W. Smith PH.D.  For 30 years, Dr. Smith has been an economic professor.  He taught economics at Eastern Illinois University, is a graduate of Ball University Indiana and has written seven books.  If you want to know more about him, just put his name in search and you will find  a complete story about him and what he has done regarding Social Security.

It was in the late 80s, when Dr. Smith was doing research for a book he was writing called "The Alleged Surplus, Social Security & Voodoo Economics" that he stumbled onto what was happening with the SS Trust Fund.  He just couldn't believe it, until he changed his research and found more information regarding the depletion of the SS Trust Fund.  Much of what I wrote last week in SS Part 1, came from his work. Dr. Smith deals in facts and I have been very impressed with his work. 

He has spent more than ten years trying to get the public educated about the SS Trust Fund.  He has hit road blocks all along the way.  One, of his books, was even taken off the book shelves in stores all across the country and the publisher would not print anymore copies.  His book, "The Looting Of Social Security," only got published, because he published it himself, with his own money.  He feels that strong about what is happening.

THE SOLUTION FOR THE SOCIAL SECURITY PROBLEM

Fixing the SS problem is simple, BUT NOT EASY.  Remember, last week, I said that for accounting purposes, when the Fed. Government takes money out of the SS Trust Fund the Fed. Government replaces it with  Government Bonds.

These bonds are classed as Special Governments Bonds, not marketable bonds.  They are, however, a part of the National Debt since they are backed by the Good Faith of the United States Government.  As things stand now, they are worthless because the government, at this time, has no intention of redeeming them. 

Now you can see why there is such an effort, by everyone in Government to call SS an Entitlement Program instead of an Insurance Program, which it actually is.  Almost every day someone in Government refers to SS as an Entitlement.  In the Jan 3, 2011 edition of the Washington Post, Rep. Allen West of Fl. was quoted as saying "I could support raising the National Debt limit, if there were also spending caps and changes to entitlement programs, like Social Security." 

If the Government can convince the public that their payroll deduction, is a tax instead of a premium, which is what it actual is, then they don't have to admit to the fraudulent looting of the SS Trust  Fund.  If they can call SS an entitlement program, then they can make changes in eligibility and benefits, as they choose and they're out of the woods. 

At the same time, as they are trying to make acceptable adjustments, the Republicans, particularly, can start trying to sell the Privatatization of SS, which, if ever adopted, would be the beginning of the end of SS.  This is what Republicans want.  They have fought against SS almost from the time it was passed.  Historical facts show this to be true.   It is simply too much of a social program for them.

You're probably wondering, if I am ever going to come up with the solution.  Well here it is. 

First, remember, the bonds in the SS Trust Fund are a part of the National Debt.  All that has to be done is for the government to borrow from the public, the 2+trillion dollars to redeem the Special Government Bonds in the SS Trust Fund.  When they do that, it increases the National Debt, BUT when it is paid to the Trust Fund, it cancels out that increase because, those bonds in the Trust Fund are no longer a part of the National Debt.

The second thing that has to be done, and this may be the hardest part, is to someway stop Congress from taking money out of the Trust Fund and show a true operating budget.   At this time, I don't have any suggestions as to how to accomplish this, since it is already against the law to do this (THE BUDGET ENFORCEMENT ACT OF 1990).  Adding another law, I don't think will do it.  Maybe some of you will have an idea. 

I said it was simple and it is, but it is not easy.  The only way that this can happen is, IF THE PUBLIC GOT SUFFICNTLY UPSET ABOUT WHAT HAS BEEN HAPPENING TO DEMAND THAT THIS BE CHANGED

This, of course, is what my objective is.  I can't get it done by myself obviously, Dr. Smith has been trying for ten years without getting enough support to get it accomplished, but if there are enough of you, out there, that read this and agree, or disagree, maybe, just maybe we could all work together and get a movement started and expanded.  It's nothing to me, personally, as whatever happens isn't going to affect me, but it will my kids and grandkids.  It may very well affect you personally. 

Let me hear from you, whether you agree or not.  I'm open minded.  Just think about it.  The only problem I have with criticism is that it should have something to offer in place.

The matter of SS adjustment is going to come up in Congress in the very near future.  Tell your friends about my Blog and ask them to read it and see what they think and ask them to ask their friends etc.

I realize that all of this is so hard to believe, that our Government would do such a thing. Next week, I will provide proof by a Presidential Candidate and a sitting President who have both openly, in public meetings, told of this problem

SEE YOU NEXT MONDAY JAN. 17, 2011

Floyd