WELCOME TO OPINIONS BASED ON FACTS (OBOF)
OVERVIEW Published Dec. 28, 2010
SOCIAL SECURITY PART 1 Published Dec. 30, 2010
SOCIAL SECURITY PART 2 Published Jan. 10, 2011
SOCIAL SECURITY PART 3 Published Jan. 17, 2011
SOCIAL SECURITY PART 4 Published Jan. 24, 2011
SOCIAL SECURITY PART 5 Published Jan. 31, 2011
SOCIAL SECURITY PART 6 Published Feb. 07, 2011
SOCIAL SECURITY PART 7 Published Feb. 14, 2011
SPECIAL ISSUE Published Feb. 18, 2011
SOCIAL SECURITY PART 8 Published Feb. 21, 2011
SOCIAL SECURITY PART 9 Published Mar. 01, 2011
SOCIAL SECURITY PART 9
WHERE TO BEGIN?
So much has happened this week that it is hard to know where to begin. One thing is for sure, it is time to get some letters out, so I think I'll start with that.
TIME TO WRITE
Last week, I suggested that you try to obtain the names and addresses of your Senators and Representative. If you have not been able to do that yet, below are the links you need to get that information, thanks to my son. Also, when you pull these links up, they will tell you everything to do, as well as, provide the proper form to use to send your letter of concern. No postage required.
THIS SITE LISTS SENATORS ALONG WITH THEIR CONTACT INFORMATION
THIS SITE ALLOWS YOU TO LOCATE YOUR US
THIS SITE ALLOWS YOU TO LOCATE YOUR 4-DIGIT ZIP CODE EXTENSION
The following is a suggested letter to send. You can use all of it or part of it or just write your own. One of the main things we want get across is that SS is not an Entitlement program.
Date
Dear Senator xxxxx
I am very concerned about the status of the Social Security program. There is a lot of talk about it being an Entitlement program and that it contributes to the deficit. The studying, that I have been doing, tells me that neither is true.
An Entitlement program is supported by the Government, such as Medicare & Medicaid. Social Security is an insurance program, Old Age, Survivors and Disability Insurance (OASDI). It is self supporting by a premium, withheld from worker's pay, known as FICA, Federal Insurance Contribution Account.
During the past 25 years, two Democrat and three Republican Presidents have taken 2.6 trillion dollars from the Social Security Trust Fund surplus and used it as though it were General Revenue, which is illegal, in accordance with the Budget Enforcement Act of 1990.
The money, the Government is putting in the Social Security program now, is nothing more than a small down payment on all that was taken. That money is part of the National Debt, so when money is put in the Social Security Trust Fund, it also reduces the National Debt.
Social Security should not be on the table when considering spending cuts and a plan should be made to pay back the 2.6 Trillions dollars that has been, illegally taken.
Sincerely,
WHEN SHOULD WE WRITE?
NOW IS THE TIME. Things are really heating up in Washington
I had hoped, that you could copy/paste the above letter, but I find that that won't work. If you want to use the letter I have given you, you will need to print it and then type it into the form that your Senator or Representative has set up for you to use. I want to stress that it is not necessary for you to use the sample letter I have provided. If you want to write your own letter that is fine, BUT WRITE.
In a couple weeks, depending on what happens in Washington
REALLY GREAT NEWS - USA
Sent: Mon, Feb 21, 2011 10:54 pm Smith's "voice crying in the wilderness" has finally been heard!
Dr. Smith said,
"I FEEL VINDICATED TONIGHT! After being thought a fool by many, for more than a decade, USA
The above link will give you the USA
HOWEVER, it is very light on referring to the cause of the depleted SS Trust Fund. It says nothing about it being illegal to use the money as though it were General Revenue. It says that FICA money comes in one door and out the other, but no reference to the fact that this is against Federal law.
I am truly excited that a leading national news media has given credence to Dr. Smith's work and, incidentally, to mine.
Dr. Smith, Congratulations! It has been a long time coming, but, as the saying goes, better late than never. You certainly deserve it.
BEEN THINKING ABOUT THE NATIONAL DEBT
NOT SURE I WAS WRONG
In SS Part 7, I talked about the money that has been taken out of the Trust Fund and replaced with Special Government Bonds. Those Bonds, even though they have no monetary value, are a part of the National Debt (ND). My thought was, that, since they are a part of the ND, they could be replaced with Public Bonds that have, good as gold, monetary value, without increasing the ND. I said, that nobody to that point, had told me why that would not work.
Dr. Smith then explained that, even though they are a part of the ND, they are in a different category and that it would increase the ND owed to the Public. At that time, I said I had been wrong about my approach to replacing the IOUs in the Trust Fund, with, good as gold, bonds. He provided me with the chart below.
The Debt to the Penny and Who Holds It
Current | Debt Held by the Public | Intra-governmental Holdings | Total Public Debt Outstanding |
02/10/2011 | 9,455,138,178,100.21 | 4,628,207,587,981.94 | 14,083,345,766,082.15 |
Since then, Feb. 14, 2011, the Congress is faced with the need to raise the ND limit. In all the talk that I have heard regarding this, the total debt is the only figure that I hear mentioned, 14 trillion dollars. From the above chart, you can see that this figure includes both Public held debt and Intra-Government held debt.
Since Congress is thinking in terms that include Intra-Government holdings, I think it is reasonable for them to consider a complete fix of SS, by exchanging the Special Government Bonds in the Trust Fund for marketable Public Bonds. The total ND would remain the same. The Public holdings would go from 9.4 Trillion dollars to 12 Trillion dollars and the Intra-Government holdings would go from 4.6 Trillion dollars to 2 Trillion dollars. Total debt remains at 14 Trillion dollars.
I realize that interest rates on the debt may go higher, but it solves a lot of problems and the baby boomers wouldn't get a third whammy. SOCIAL SECURITY IS THE MOST SUCCESSFUL PROGRAM THE GOVERNMENT EVER DEVELOPED. If it wasn't for greed, there would be no problem with it today.
SpeakOut MEETING REORT
Last week, I told you about a meeting that was going to take place, sponsored by a national group called MoveOn. I learned that there was a series of these meetings across the country. The meeting turned out to be very productive, but it wasn't what I had been led to believe it would be. I thought Senator Inhofe would be at the meeting and he wasn't. I learned that, he had not been scheduled to be there. That was better than if he had been scheduled and then didn't show up.
There were two of his representatives and 23 people in attendance. There were a number of issues brought up and the Senator's representatives took notes and said that the Senator would be briefed about the meeting.
I had written the remarks that I was going to make. I don't read any remarks I make, but I study them before hand. Also, often times, it is good to have your remarks written to give to the press or anyone else that might want it. By the way, the press was not there.
There was real interest and we had a good discussion about Social Security. I gave everyone my business card, which has my Blog link on it, so maybe we'll have a few new followers. One of the Representatives took my written remarks and made copies for everyone. That was a real plus, from my standpoint. One, very nice lady, said she was going to read all of my messages on the Blog and I was happy to hear that. You will know who I am talking about, if you are reading this. Would like to hear from you.
REMEMBER, GET THE LETTERS OUT. IT IS REAL IMPORANT.
See you next week.
Floyd
A P O L O G Y
I have heard from some of you, wanting to know where Monday's message is. As you can see, there was a lot to write about and it just took me longer to get it together. At that, I didn't put everything in. Once in a while, something like this will happen and sometimes I have a personal matter that may make me a day late. I don't want to be late and I'll try my best to not let it happen very often. I do appreciate your understanding and it is good to know that you are looking forward to the message on Monday. Thanks so much for you loyalty.
Note: I am adding my written remarks, in case it might be of some benefit for you in discussions you might have with friends and neighbors.
There has been a great deal of talk recently about Entitlements. What is an Entitlement? It is a program, for which the Government provides the money for it's operation. Medicare and Medicaid are both entitlements.
Social Security is not an entitlement. Social Security is an Insurance program. The insured provides the money for that program. The name of Social Security is OLD AGE, SURVIORS AND DISABILITY INSURANCE. (OASDI).
It is supported by a payroll deduction known as FICA. FICA stands for FEDERAL INSURANCE CONTRIBUTION ACCOUNT. There is no Government money provided. Social Security is a self-sustaining program.
In 1983, President Reagan appointed a Commission, headed by Allen Greenspan, to study the future solvency of Social Security, in the face of the Baby Boomers becoming eligible. They developed a plan to overcome this future problem.
Prior to that plan, each generation's FICA paid for the benefits of the previous generation. After the plan, the Baby Boomer Generation paid for the previous generation and for their own generation - a double whammy. The idea was that by 2018 there would be 3.7 trillion dollars in the Trust Fund. That surplus would meet all the needs till about 2041, when the youngest Baby Boomer would be 79 years old.
So why is there a problem now? The problem is that, for the past 25 years the Government has taken 2.6 Trillion dollars from the Trust Fund and used it as though it were General Revenue. This was illegal, in accordance with the Budget Enforcement Act of 1990. Two Democrat Presidents and three Republican Presidents have allowed this to occur, so that now the Trust Fund is empty, as far as having usable money is concerned.
Now, it is said that the Government is having to put money in the Social Security program and that contributes to the deficit. The money, that is being put in the Social Security program now, is just a small down payment on replacing what has been taken. Thus, Social Security contributes nothing to the operating deficit of the Government.
It is said that, the Government just borrowed that money and they replaced it with, what is called, Special Government Bonds. These Bonds are nothing more than IOUs. They are worthless, as far as providing money. When you borrow money from a bank, there is a set plan for repayment. Lacking a set plan makes taking the Social Security money nothing less than fraud and stealing.
My question, Senator Inhofe is - Is there any plan of repayment and if not, when will there be?
Floyd Bowman 2-24-2011
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