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Social Security is Not an “Entitlement” Program

Politics / US Politics Feb 18, 2011 - 03:51 PM GMT

By: Chris_Kitze

Politics

Best Financial Markets Analysis ArticleMarti Oakley writes: A long coveted cut to Social Security and Medicare is going to happen. This will occur for reasons none of the politicians in the District of Criminals will ever speak about publicly. There is far more at stake here than what the District terms an “unfunded liability”. When you hear those in the District speak about this liability, you need to understand what they are really saying. This is an intra-governmental debt, meaning; a debt accrued within the government. It is a liability to the federal government because it is owed to “you” and they have no way of paying it back without taxing you more heavily. You are the “full faith and credit” of the United States corporation. That means government runs up the bills and we pay it.


The federal government now includes Social Security in its debt portfolio, not because the program is insolvent or ever was, and not because the Federal government has to fund it in any sense (SS is funded by your investments) but because the Federal government has stolen so much money from the fund, then sold special treasury securities on those stolen funds to countries like China to finance the massive debt accruing across the board. Since there is no chance the national debt can ever be repaid, the Fed is now in the position of finagling the discharge of internal debt from the books. Look at it as a form of back door bankruptcy.

The federal government DOES NOT fund Social Security! Social Security funds the federal government.

Since the Johnson Administration of the 60s, the S.S. fund has been plundered and the surplus from the fund used to finance wars and the daily operations of the federal government. This came as a result of Johnson declaring that these surplus funds would be added to the general fund. Once there, the funds could be used for anything and everything.

As only one example: The Bush2 Administration had to cover the loss of revenues from the welfare tax cuts to the upper 3%. It was imperative that the administration be able to cover up the loss by showing a presumed increase in revenues that was supposed to have resulted from this preferential treatment of the uber wealthy. Surplus funds were stripped from SS, along with any unused funding from any other program, then added to the general revenue column as though these increases were generated as an actual result of the welfare tax cuts. These stolen funds with their new designation as “revenue” were then used as proof that these welfare tax cuts were beneficial. Its all a lie, and one the middle and working classes are about to pay the bill on.

Every administration has, without exception used the same tactics to hide preferential treatment of their buddies; to cover up expenditures for things most of us would find highly objectionable.

Most of the American public is totally clueless as to the deceptive accounting practices being used to fool them, and most still have no idea that the budget presented to the public is the simplified budget and only includes carefully presented revenues and expenses meant to portray a specific picture of the nations financial dealings. And many more of us are totally unaware that there is another budget referred to as the “unified budget” which shows all revenues from every source and every expense of any kind and a budget which, if we were to view it and understand the true implications, would most likely scare the beetlejuice out of most of us.

Note** Even the unified budget does not itemize, contain or otherwise acknowledge the funds diverted to “black ops”…no one can know that for some reason. Black ops are the clandestine operations performed by various organizations within the government and usually the CIA and are said to cost the country billions each year.

The stolen SS funds are now approaching 3 trillion. That is 3 trillion dollars of FICA taxes gleaned from generations of workers for a specific purpose that the federal government stole and then sold special treasury notes on. This is a debt owed by the federal government (USA Corp) to the investors (all you workers) that they never had any intention of paying back and is why it is referred to as an “unfunded liability”. It is a massive cash liability for a debt owed to generations of working Americans. As the amount stolen from the investments of workers grows so does the unfunded liability incurred.

At this point, one or more things must happen to protect the thieves.

In what can only be described as a another case of nationalizing the losses and privatizing the profits, we have the District career criminals calling for raising the age of retirement as one option to curtail the number of people able to access their investments in Social Security. This means fewer people leaving the job market and conversely, fewer jobs available to those entering the job market. A really crappy idea considering the millions out of work now and only one job available for every five applicants.

Another option proffered is cutting the amount of benefits. This one is really sneaky! You are supposed to think that by cutting benefits this will somehow offset any future shortfalls in Social Security. Here’s what it really does: It increases the amount of SS surpluses accrued because it lowers the amount being paid out of the fund and increases the funds available to the ongoing theft of your investment. While millions are out of work and not investing in Social Security, this scam will reduce payouts while maintaining virtually the same level of surplus the Federal government is going to steal.
The favorite of course is to collapse Social Security altogether.

“Therefore, Obama’s commission may recommend a variety of tactics to strip the program: instituting benefit cuts, increasing the age in which benefits are received, and introducing a limited option for personal accounts. Also possible is the implementation of a tiny, ineffectual tax on the rich to give the illusion that everybody is making sacrifices.”

I am always amazed at the hyperventilating of those who scream “It’s a ponzi scheme!” I have news for you; so is the stock market and so are your insurance policies. You invest in each of these with full expectation of reaping more than you sowed. In each of these situations, a system of perpetual funding is devised with a promise of future profitable expectations by you. The difference is this; Social Security is not operated with the intent to profit, but the insurance company and stock market is.
Social Security is NOT an unfunded liability. Social Security is very well funded by American workers. The federal government is the unfunded liability but covers this liability by stealing the retirement investments of workers. Yet there are those out there who are now trying to reframe this issue by claiming that there never was a Social Security trust fund, and, that FICA taxes collected to cover your investment in that fund aren’t really investment taxes..this is just an additional tax levied on you for some vague reason and therefore its quite alright for the federal government to seize these funds for other purposes.

Many people believe that Supplemental Security Income (SSI) is the same as Social Security. Supplemental Security Income (SSI) is a Federal income supplement program funded by general tax revenues (not Social Security taxes). www.ssa.gov/ssi/ The program is administered by the Social Security administration so that the costs of administration are shifted to SS, but the funding for claims is not from your investment in Social Security.

Those who are beating the drums for ending social security as they allow themselves to be consumed by political rhetoric that bears little resemblance to the truth, need to do some real research on the actual benefits of this program as opposed to allowing those doing the talking to paint this program as an “entitlement” and some form of welfare that was unearned. Social Security is an investor funded program that has also been used to fund the government, it is NOT an entitlement program nor was it intended to be any form of welfare. The “entitlement” the government speaks of would be more aptly applied to them; they feeling they are entitled to avail themselves of our investments and use that money for whatever they choose to. This amounts to a second and third round of taxes as many of our payees are forced to pay taxes on their benefits each year after being taxed over their working lifetime to fund their investment. The third tax is exemplified in the theft of surplus funds the government can’t pay back.

Extra demands are put on Social Security as illegal aliens are granted access to the fund without actually having contributed to it to any degree. An illegal alien from Mexico, can come here, work under an admitted assumed name, work as little as three quarters and return to Mexico and make a claim against Social Security. The summary of the GAO report contained this statement:
GAO report

“Under the Social Security Act, all earnings from employment in the United States count towards earning social security benefits, regardless of the lawful presence of the worker, his or her citizenship status, or country of residence. Immigrants [both legal and otherwise] become entitled to benefits from unauthorized work if they can prove that the earnings and related contributions belong to them. However, they cannot collect such benefits unless [or until] they are either legally present in the United States [hence the Administration's Guest Worker Program], or living in a country where SSA is authorized to pay them their benefits. [Hence an SSA office in Mexico City] Mexico is such a country.”

www.gao.gov/new.items/d03993.pdf

The upshot of all of this is: Social Security is not only paying for wars, government expenses, and other non-related purposes, it is also covering the loss of revenues resulting from the welfare tax rates given to the uber wealthy and to fund illegal immigration, an activity that is bankrupting communities across the country. At the same time it is still producing a surplus above and beyond all claims of any kind made against it, although if a real effort isn’t made soon to create and secure jobs here in the US, many things along with Social Security are going to disappear.

And many of you think this would be just great as long as long as you are left untouched by it all, and many of you for some reason believe you will somehow be exempt; that your life will be unaltered or unaffected. I have news for you: No one will be spared.
_____________________________________
Resources:
Mexico Totalization Agreement
www.tscl.org/NewContent/Totalization_Agreement.pdf
GAO pdf.
Proposed Totalization Agreement with Mexico Presents Unique Challenges
www.gao.gov/new.items/d03993.pdf
SSI Fund
www.ssa.gov/ssi/
Special Treasuries Securities
www.ustreas.gov/ffb/
Social Security funds stolen by government
ppjg.wordpress.com/2010/07/16/social-security-money-stolen-by-government/
The Drive to eliminate Social Security in America
ppjg.wordpress.com/2010/02/25/the-drive-to-eliminate-social-security-in-america/
The real unfunded liability —the federal government 2008
ppjg.wordpress.com/2008/10/25/the-real-unfunded-liability%e2%80%a6the-federal-government/

Marti Oakley

Marti Oakley is a political activist and former op-ed columnist for the St Cloud Times in Minnesota. She was a member of the Times Writer’s Group until she resigned in September of 07. She is neither Democrat nor Republican, since neither party is representative of the American people. She says what she thinks, means what she says, and is known for being outspoken. She is hopeful that the American public will wake up to what is happening to our beloved country . . . little of it is left.  Her website is The PPJ Gazette 

Source:http://beforeitsnews.com/story/428/428/Social_Security_is_not_an_entitlement_program.html

By Chris Kitze

http://beforeitsnews.com

A long career in digital media led to Before It's News, the People Powered News site that is quickly becoming a leading source for alternative news. We've got a great team of very bright and hardworking people with an incredible market opportunity that's been handed to us by a corrupt media and government. We're here to help you get your news out, that's why this site exists.

© 2011 Copyright  Chris Kitze - Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Eddie_T
12 Jul 11, 16:40
Social Security

Sorry, but there is no way for a Social Security Trust Fund to exist other than in mythology. You see if the money were in a vault it would earn no interest. Money that earns interest is leveraged in the real world. If SS funds earned any interest the taxpayer would be paying it as there is no one else. In the government SS funds are spent as ordinary revenue and for years done so off-budget. SS is in reality a Ponzi scheme whereas current payers support the payees. When the outgo exceeds the revenue insolvency occurs. For SS funds to grow they would have to be invested in the economy as in stocks and bonds. So come off the argument that SS funds are stolen it's all in accordance with the original Ponzi scheme.


kathy B
08 Aug 11, 13:04
Social Security- Response to Eddie T

Social Security does not have to sit in a vault. It can still be invested. However, you can not steal from it to support other programs. The large group of people called the baby boomers, paid into the program and produced a surplus. Government did not look into the future to when these people where ready to retire. Instead they stole from this program to support other spending. Now as they retire, the money that they put into the program that could have been growing and able to fund their retirement as they were told, is no longer there. We have put money into these programs, and if they were invested properly as our 401s have done for us, there would be enough money. Government needs to stop spending not cut what we have funded. n


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