Tuesday, July 19, 2011

Social Security, how we got here

Last week Barack Obama tried to force a budget deal with Congress he'd find favorable.  If the debt ceiling wasn't raised, his way he threatened to stop all Social Security and Federal Retirement Checks from going to to people who paid into those funds all there lives. Unfortunately he has that authority. I noticed he didn't mention stopping funding for his pet agenda programs or Air Force one. Obama care, to which no one has yet been forced to contribute to, would it seems still be funded as would his Race to the Top agenda.. Once upon a time, he would have not have had that power.
FDR Contributions will never
be used for anything except
Social Security

When Franklin Roosevelt started the Social Security Program, he swore to the American people the fund would never be used to fund anything except Social Security and under no circumstances would it ever be used to fund other government operations or programs. FDR died, it took a while, but so did his promise.

In the mid 1960's, Lyndon Johnson had a problem, actually he had a lot of problems, come to think of it he, himself was a problem, but that's another topic.  He'd started a war, a big very, very expensive war.   He'd also initiated his "Great Society" the largest social program the United States had ever undertaken and it wasn't cheap.  He needed money, and a lot of it, he also needed it quick.  Calling up the Federal Reserve and asking them him up an extra hundred billion or so wasn't an option.  Prior to 1964 the Federal government had to own a dollars worth of silver for every paper dollar it printed... Even though Johnson had managed to do away with that pesky little rule Americans weren't ready to accept the idea the Government could just print money on a whim.

America was safest when
LBJ Slept
The only place that had the kind of money Johnson was looking for was Social Security... From it's creation in 1935 Social Security had generated a "surplus'  by the time Johnson took office the surplus was huge, and it was just sitting there for the taking..  Except for a little law that said Social Security couldn't be touched for anything except Social Security and it was never to be placed into the General Fund...

If I recall he had a Democratic Congress, it wasn't hard to convince them to change the law.  Lots of extra money to play with, it could be used to pay for Social Programs, cover up excessive spending, budget shortfalls, pretty much anything except hired hookers for congressional orgies and some of that wouldn't surprise me at all. For almost 50 years Social Security has been used to hide reckless spending from the American People. Now we are told it's becoming governments biggest liability when in truth Social Security has never cost Government a penny.

The American people were told it didn't amount to much more than a change in accounting procedures..  Besides the Trust Fund was so huge not even Congress could manage to spent it all..  They also convinced us that the money they were taking would all be accounted for, and the fund would earn 3% on every cent the government borrowed..  As someone once said,  "You can fool all the people some of the timethe suckers were --- make that, the American Public was fooled into believing their Government.  Congress never had any intention of paying back a penny, the population was still growing, since a much higher percentage of the population actually worked and paid taxes back then, not even Congress thought they could outspend Social Security's  growth.. rate..  Every year Congress took the Cash and replaced it with special  unmarketable, non negotiable government bonds.  Every year they dutifully paid the interest with the same worthless bonds...  It's kinda like covering bad checks, by writing more bad checks...

It took Congress less than 20 years to break the bank... By 1980 the Trust Fund Surplus was spent..  Congress was faced with having to repay the Trust Fund, and just as bad, they'd lose their slush fund.. ...  That wasn't going to happen The fix was simple, raise the retirement age and increase the Social Security Tax a little and force the American people to eat it, and like it...  In exchange we were told this was a forever fix..

The "Forever Fix" lasted less than thirty years..  we're back in the same boat,  Congress isn't going to give up there slush fund,  and they sure as hell aren't planning on repaying the money,  you can bet on that.  That leaves them two choices, screw the public again by raising the taxes and retirement age or admitting they've been committing the largest Criminal Fraud in history for the last 50 years. and telling the American taxpayer they have  to repay all the money they've paid into the system.

Both Party's are talking about fixing Social Security (again) and part, a small part of what they're saying is true, since it now takes two wage earners to support a family, the most productive citizens are having less children. The entire program was based on an ever expanding, productive, work force. America's women not having so many children has resulted in almost zero growth in the natural born population. r population growth is now dependent on immigration..

The other reason for fixing Social Security is simple, Congress wants back their slush fund, without Social Security as a creative accounting cover, Americans might find out the truth about the budget.

In my opinion we should break Social Security reveues, and payouts out of the budget completely, keep it as a seperate fund, as it was originaly promised. Then let congress talk about a fix, part of the fix needs to include life in prison for any politican that even suggests Congress should start raiding the fund again.




  1. Now THIS is SCARYYYYYYYY (and quite funny to me at the same time) - go to the Social Security Administration web site and try to get a statement of your lifetime contributions .... here is the link ...


  2. Is it only me... I still can't get an answer.. duh.. this is because SS is a SCAM... they don't have MY money. The account is empty. I am 51 years old.. Note: they want your birthday.. with year..

  3. Great article, Grumpy! I want to link it to Real Americans ... might as well open the eyes of more folks and like Black Swan, scare the heck out of them! (Black Swan, you are truly cracking me up ... laughing so hard!) By the time you can collect, you should be around 68-70, if they increase the retirement age! Geeze!

  4. Tough luck you guys. I'm using it all up. I shoulda been gone a long time ago.

  5. Don't say that Bud. I worked so you can collect now my kids are working so I can collect. I hope anyway.

  6. I told them to invest my share in Microsoft, Google, Southwest Air, Walmart, Crackerbarrel, and Sturm Ruger. Too late smart.

  7. Anything except Non Negotiable Treasuries Marine?

  8. Oh my, Marine, I love your investments! :)

    I invested in raising 4 children; then, working for the next 25 years full time (raising the kids wasn't work - piece of cake!)HA HA HA!

    I am retired and if Obama withholds my SS check next month, expect to see me on the 5 PM news - for I'll be the crazy lady on the steps of the WH - with a loaded bees nest!

  9. I posted a comment on your item on Tea Party Nation. You can find my views on my site at www.voteforles.info.

  10. Bee, I'll be looking for ya. I raised two and worked part time while they were young. I am 4 years away from SS but I would stand with you.
    Part time for pay and double time at home for free.

  11. Fishygal - Great! I could use the company! How about you bring along a "school" of sharks with you(?) Would you take part time pay in jars of honey?
    Four more years? I hear the clock ticking .... :)
    When you do retire, expect to be busier than when you were getting paid ... life is good, and better once you are free to do whatever pleases you (and not the boss!) Less money, but greater rewards.

  12. Great Post Grumpyelder---You wanted to know if I had more info about the Gould, Ar. Insanity. I have added a new post with links only, but here are the most important 2, the pdf's of the actual ordinance:


  13. Great comments, Fishy, Bee, I don't want you two getting in trouble, kinda like having you around.. If he gets stupid, we'll find a way. legally

    Les I'll take a look at your site a little later. I saw your comment on TEA Party Nation, I appreciate it, feel free to drop by anytime, you're always welcome..

    That's true for you too anonymous, I enjoy being agreed with, come back any time.

    Loopy, I saw the email, haven't had a chance to read it yet... I'll take a look at youur post before I go to bed.... I don't need to tell you, it's good to see you here.

  14. The only thing that'll stop these crooks is if 10 or 20 of 'em set an example & start serving a 10 or 20 year sentence in a federal pen. Maybe start with the guy that sits in the Oval Office and the guy that runs the Senate and the demented termagant that used to reign over the House.

  15. Bob, I believe the grounds are there to do that to several members of his cabinet. I'm not sure there is enough to nail him, the dirty work gets delegated.

  16. Hey ladies, if you protest at DC on August 7th, I will be happy to join you. I am not yet on SS, but have offered a deal. I will gladly donate what my employer paid in if they will return the portion I paid in plus a nominal 6% interest compounded since 1964. Also 3 of my 4 parents/inlaws never drew a cent from SS/Medicare, and the one who did was a gap-baby. Needless to say, I am not a huge fan of the largest Ponzi scheme ever devised.

  17. Marine, might have to borrow that comment, I've got one out of a who flock of people on another froum that sees it differently tan the rest of us

  18. Grumpy - What is mine is yours. Guess which POTUS came up with that Gap-Baby scam? And he even insured it would not go into effect until after the 1980 election. Not many left in that 1917-1921 birth year range, but betting many of their descendents still remember. Our elephant mascot is very appropriate.

  19. that damn fool, O-bomb, wants to continue to give welfare assistance to those drones who have not worked in the past, are not working presently, & have no intention of working in the future. those people intend to continue to bring babies into the world, collect our $money$ on them, & keep defrauding the system. on the other hand the "ersatz president" wants to deny those who have worked & contributed to the "fund" thinking that they would have a bit of money in later years. mind you, this money was taken from the pay checks of working people, not voluntarily, but it was a forced deduction. no one had a choice! the american work force has been "hosed"!! i am incensed! keep in mind, november 2012. alphamom/marianne


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