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DC Terrorists : Extorting The Elderly

Joe Economist

Council Member
Originally Published : (longer version) http://www.policymic.com/articles/61263/outrageous-fear-mongering-takes-hold-of-d-c-as-debt-ceiling-deadline-approaches/851537

Monday, the government opened the season of its favorite sport: terrorizing the elderly and the infirm. Washington wants more money. So it threatens the most defendless in our society.

Two years ago, Obama played the game of "We aren't sure whether your Social Security checks will go out." This time it is Treasury Secretary Jacob Lew who sent a letter to Congress specifying that "the government wouldn’t have enough cash to cover Social Security payments, military personnel salaries, Medicare and other programs for an “extended period.” Basically, if you don't give us more money, we will shoot the old people.

This is the same Secretary Jaboc Lew who signed a letter to Congress a few months back that said the Social Security Trust Fund had enough cash by ITSELF to pay benefits for more than three years (page 4). The latest figures show that the trust fund has roughly $2.8 trillion in assets. The only possible way that Social Security will not have cash sufficient to meet its bills for years to come is if the man running it is completely incompetent. Who is the managing trustee of the Social Security Trust Fund, Secretary Jabob Lew of course.

For all of its long-term financial problems, Social Security has a very solid network of near-term funding sources. The bonds held by the Social Security Trust Fund can be refinanced without adding to the total level of government debt. If the Secretary feels that the government might not be in a position to refinance the debt, he should build a cash reserve today in preparation for that possibility. On top of the trust fund, the system collects a portion of payroll taxes. If there were any truth to the letter, Secretary Lew would be fired for breach of his fiduciary responsibility.

Here is proof that reality is stranger than fiction. When Social Security has excess cash, it is required to invest it in government securities. Unfortunately, the government will not be able to issue more debt. So any excess cash would sit uninvested, while the rest of the government is unable to borrow it.

It is time to remove politics from Social Security. The system needs an independent managing trustee who does not view the elderly and infirm as cattle to prod. The idea that Social Security might not have cash to pay benefits in October is meant to create fear in the elderly rather than inform the public. It is despicable behavior.
 
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Barbella

Senator
Originally Published : (longer version) http://www.policymic.com/articles/61263/outrageous-fear-mongering-takes-hold-of-d-c-as-debt-ceiling-deadline-approaches/851537

Monday, the government opened the season of its favorite sport: terrorizing the elderly and the infirm. Washington wants more money. So it threatens the most defendless in our society.
Two years ago, Obama played the game of "We aren't sure whether your Social Security checks will go out." This time it is Treasury Secretary Jacob Lew who sent a letter to Congress specifying that "the government wouldn’t have enough cash to cover Social Security payments, military personnel salaries, Medicare and other programs for an “extended period.” Basically, if you don't give us more money, we will shoot the old people.
This is the same Secretary Jaboc Lew who signed a letter to Congress a few months back that said the Social Security Trust Fund had enough cash by ITSELF to pay benefits for more than three years (page 4). The latest figures show that the trust fund has roughly $2.8 trillion in assets. The only possible way that Social Security will not have cash sufficient to meet its bills for years to come is if the man running it is completely incompetent. Who is the managing trustee of the Social Security Trust Fund, Secretary Jabob Lew of course.
For all of its long-term financial problems, Social Security has a very solid network of near-term funding sources. The bonds held by the Social Security Trust Fund can be refinanced without adding to the total level of government debt. If the Secretary feels that the government might not be in a position to refinance the debt, he should build a cash reserve today in preparation for that possibility. On top of the trust fund, the system collects a portion of payroll taxes. If there were any truth to the letter, Secretary Lew would be fired for breach of his fiduciary responsibility.
Here is proof that reality is stranger than fiction. When Social Security has excess cash, it is required to invest it in government securities. Unfortunately, the government will not be able to issue more debt. So any excess cash would sit uninvested, while the rest of the government is unable to borrow it.

It is time to remove politics from Social Security. The system needs an independent managing trustee who does not view the elderly and infirm as cattle to prod. The idea that Social Security might not have cash to pay benefits in October is meant to create fear in the elderly rather than inform the public. It is despicable behavior.
And that is exactly how this administration operates.
 

Joe Economist

Council Member
And that is exactly how this administration operates.
In the longer piece, I point out that there isn't any indication that this is party-specific. If it were, there would be GOP leaders calling for Lew's resignation. This behavior I sense is completely acceptable in the DC-culture.
 

Barbella

Senator
In the longer piece, I point out that there isn't any indication that this is party-specific. If it were, there would be GOP leaders calling for Lew's resignation. This behavior I sense is completely acceptable in the DC-culture.
Agreed. I'll go one step further and say that nothing is party-specific in reality. In reality, there's only ONE party: "The Party of The Elites".
 
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