Sen. DeMint: Obama Purposely Creating “Panic” Over Debt Ceiling

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President Obama is being very misleading in his statement that he can’t guarantee Social Security checks will go out on Aug. 3….

“We are not going to default, we have enough tax revenue to pay our bills. It certainly will be disruptive if we continue going on the track we’re going on right now. We have enough asserts, Social Security, Medicare trust fund to pay those benefits if necessary. It’s not ideal but we don’t need to panic and rush into a deal and the President has actually been burning the clock with these secret negotiations pushing us against a deadline so he can create this panic. We need to keep calm and if the President would work with us on some reasonable cuts, we’ll work with him on giving him an increase on the debt limit. Now is not the time to panic and do something else that is going to make our economy worse and cost us most jobs,” Sen. Jim DeMint (R-SC) said on The “Today” Show this morning.

Real Clear Politics

AARP Willing To Negotiate On Social Security Retirement Age

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The nation’s leading advocate for senior citizens says that it hasn’t wavered in its opposition to cutting Social Security benefits, though a top official with the group said it is open to a discussion about raising the retirement age and other changes.

The Wall Street Journal reported Friday morning that AARP, one of the most influential lobbying groups in Washington, was softening its opposition to cutting retirement benefits.

AARP initially pushed back against the newspaper’s story.

“Stay tuned — our position has not changed on Social Security,” an AARP spokeswoman said in an email to HuffPost.

Socialsecurity

AARP legislative policy director David Certner said on CNN Friday that “there was some miscommunication with the Wall Street Journal story.”

But then Certner acknowledged that AARP believes the program needs to be changed.

“Everybody knows we need to look at a package of different changes to Social Security to make it strong for the long term,” he said. “The reality is, we have more people older and who are living longer, so we need to make changes. Everybody recognizes that. And we’re certainly willing to talk about a package of changes that will keep Social Security strong.”

He suggested raising the age at which retirees can receive full benefits — currently, 66 years old — would be on the table even though doing so represents “a massive benefit cut for people.”

The 37 million-member lobbying powerhouse launched a national ad campaign Thursday warning members of Congress not to reduce benefits for recipients of Social Security and Medicare.

Jonathan Cowan, president of centrist think tank Third Way, hailed AARP’s apparent reversal, per the Journal story.

“Today marks a watershed moment in American politics,” Cowan said. “For decades, AARP has stood against any substantial changes to Social Security. Now that they have opened the door to reform, it is time for lawmakers to walk through it.”

Yet AARP reassured labor groups that it had not changed its position on Social Security, labor officials told HuffPost.

“The AARP has a history of division between the top folks and their base on these issues. The top folks like to be in the inside game,” one union official said. “But they are walking backwards now.”

The official said that he and other opponents of benefit cuts had been told that AARP’s “longstanding position” hadn’t changed, but there was some uncertainty about what that position actually is.

Entire article @ Huffington Post

Our Dictator May Be In Deep Trouble With SCOTUS One Way or the Other

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Finally the Constitution may be finally upheld in the near future instead of being constantly stepped on and trampled by this administration. I might add G.W. Bush was no angel as far as following the Constitution either. This would be great news if just some things on this list are addressed Constitutionally in the VERY near future by SCOTUS and they have the guts to rule according to the “original intent” of the Constitution by the Founders.

Our Dictator May Be In Deep Trouble

According to sources who watch the inner workings of the federal government, a smackdown of Barack Obama by the U.S. Supreme Court may be inevit…

Ever since Obama assumed the office of President, critics have hammered him on a number of Constitutional issues.  Critics have complained that much if not all of Obama’s major initiatives run headlong into Constitutional roadblocks on the power of the federal government.

Obama certainly did not help himself in the eyes of the Court when he used the venue of the State of the Union address early in the year to publicly flog the Court over its ruling that the First Amendment grants the right to various organizations to run political ads during the time of an election.

The tongue-lashing clearly did not sit well with the Court, as demonstrated by Justice Sam Alito, who publicly shook his head and stated under his breath, ‘That’s no… when Obama told a flat-out lie concerning the Court’s ruling.

As it has turned out, this was a watershed moment in the relationship between the executive and the judicial branches of the federal government.  Obama publicly declared war on the court, even as he blatantly continued to propose legislation that flies in the face of every known Constitutional principle upon which this nation has stood for over 200 years.

Obama has even identified Chief Justice John Roberts as his number one enemy, that is, apart from Fox News and Rush Limbaugh. And it is no accident that the one swing-vote on the court, Justice Anthony Kennedy, stated recently that he has no intention of retiring until ‘Obama is gone.’

Apparently, the Court has had enough.

The Roberts Court has signaled, in a very subtle manner, of course, that it intends to address the issues about which Obama critics have been screaming to high heaven. A ruling against Obama on any one of these important issues could potentially cripple the Administration.

Such a thing would be long overdue.

First, there is ObamaCare, which violates the Constitutional principle barring the federal government from forcing citizens to purchase something.  And no, this is not the same thing as states requiring drivers to purchase car insurance, as some of the intellectually-impaired claim.  The Constitution limits FEDERAL government, not state governments, from such things, and further, not everyone has to drive, and thus, a citizen could opt not to purchase car insurance by simply deciding not to drive a vehicle.

In the ObamaCare world, however, no citizen can ‘opt out.’

Second,  sources state that the Roberts court has quietly accepted information concerning discrepancies in Obama’s history that raise serious questions about his eligibility for the office of President. The charge goes far beyond the birth certificate issue.  This information involves possible fraudulent use of a Social Security number in Connecticut, while Obama was a high school student in Hawaii.  And that is only the tip of the iceberg.

Third, several cases involving possible criminal activity, conflicts of interest, and pay-for-play cronyism could potentially land many Administration officials, if not the President himself, in hot water with the Court. Frankly, in the years this writer has observed politics, nothing comes close to comparing with the rampant corruption of this Administration, not even during the Nixon years.  Nixon and the Watergate conspirators look like choirboys compared to the jokers that populate this Administration.

In addition, the Court will eventually be forced to rule on the dreadful decision of the Obama DOJ to sue the state of Arizona. That, too, could send the Obama doctrine of open borders to an early grave, given that the Administration refuses to enforce federal law on illegal aliens.

And finally, the biggie that could potentially send the entire house of cards tumbling in a free-fall is the latest revelation concerning the Obama-Holder Department of Justice and its refusal to pursue the New Black Panther Party. The group is caught on tape committing felonies by attempting to intimidate Caucasian voters into staying away from the….

A whistle-blower who resigned from the DOJ is now charging Holder with the deliberate refusal to pursue cases against Blacks, particularly those who are involved in radical hate-groups, such as the New Black Panthers, who have been caught on tape calling for the murder of white people and their babies.

This one is a biggie that could send the entire Administration crumbling–that is, if the Justices have the guts to draw a line in the sand at the Constitution and the Bill of Rights.

Resist Net

No Social Security Increase for 2nd Year in Row (2011)

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What a joke this is. No inflation? When I compare prices of things even in Wal-mart, many things are up 20-50% in price from a couple of years ago. I was looking at the 20″ box fans in the spring that have been $10 forever, now they’re $16 and last winter the Vicks humidifiers that have been $10 as well forever are $13. Groceries, you can carry $50 worth out in one hand. When we got married 39 years ago $15 would do us the entire week, (now I realize I’m sounding like my grandparents used to sound to me, ha ha, but it’s the truth for you younger folks reading this). It’s a disgrace not to give our Senior citizens a COLA raise for the second year in a row and claim there is NO inflation insults our intelligence. (p.s…….I’m not drawing Social Security…………….yet.)

No Social Security Increase for 2nd Year in Row

AP) More than 58 million retirees and disabled Americans will get no increase in Social Security benefits next year, the second year in a row without a raise.

The Social Security Administration said Friday inflation has been too low since the last increase in 2009 to warrant an increase for 2011. The announcement marks only the second year without an increase since automatic adjustments for inflation were adopted in 1975. The first year was this year.

The cost-of-living adjustments, or COLAs, are automatically set each year by an inflation measure that was adopted by Congress back in the 1970s.

To make up for the lack of a COLA, the House will vote in November – after congressional elections – on a bill to provide $250 payments to Social Security recipients, House Speaker Nancy Pelosi said. But even if Pelosi can get the House to pass the proposal, it faces opposition in the Senate.

The absence of inflation will be of small comfort to many older Americans whose savings and home values still haven’t recovered from the recession. Many haven’t had a raise since January 2009, and they won’t be getting one until at least January 2012. And the timing couldn’t be worse for Democrats as they approach an election in which they are in danger of losing their House majority and possibly their Senate majority as well.

CBSNews.com Special Report: Election 2010

“We’re a little bit upset because our bills are going up and our Social Security isn’t,” said Betty Dizik of Tamarac, Fla., a retired tax preparer and social worker.

Dizik, 83, said her only source of income is a $1,200 monthly payment from Social Security.

“I’m like a lot of other people in my predicament who live on Social Security,” Dizik said. “It’s hard. We cannot make ends meet.”

Claire Edelman of Monroe Township, N.J., said she was so hard up that at the age of 83 she applied for a temporary job as a census taker for the 2010 Census. She didn’t get the job, so she gets by on a small pension from her job with the state and her monthly Social Security payment of $1,060.

The average Social Security benefit: $1,072 a month.

Opinion: A Social Security Fix?

Social Security is supported by a 6.2 percent payroll tax – paid by both workers and employers – on wages up to $106,800. Because there is no COLA, that amount will remain unchanged for 2011. (This is the money put back in a LOCK BOX according to Al Gore)

The last increase in benefits came in 2009, when payments went up by 5.8 percent, the largest increase in 27 years. The big increase was caused by a sharp but short-lived spike in energy prices in 2008.

Gasoline prices topped $4 a gallon in the summer of 2008, jolting the inflation rate and resulting in the high COLA for 2009. When the price of gasoline subsequently fell below $2 a gallon, so did the overall inflation rate. (Oh,Please….don’t insult our intelligence) Seniors, however, kept the high COLA for 2009.

“They received a nearly 6 percent COLA for inflation that no longer really existed,” said Andrew Biggs, a former deputy commissioner at the Social Security Administration and now a resident scholar at the American Enterprise Institute. (Now come on Mr Biggs!! “inflation that no longer really existed,”…come on now….since when do prices go up and then come down? Tell us now Mr. Biggs since your electric bill jumped a few years back, how much has it dropped  back down now that inflation no longer exists?)

“Seniors aren’t being treated unfairly, here,” Biggs said. “It looks bad, but they’re actually not being treated unfairly.

By law, the next increase won’t come until consumer prices rise above the level measured in 2008. The trustees who oversee Social Security project that will happen next year, resulting in an estimated 1.2 percent COLA for 2012.

Advocates for older Americans are pushing for some kind of payment to make up for the lack of a COLA.

CBS News

Is the US government taking over our private pension plans?

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Here’s something I’ve been hearing about for some time now, but didn’t post anything because it would sound so far out before now. Now the Government is beginning to announce this to smooth it over and sound good…..like the bailouts. The government to the rescue of your pension plans? Hardly……watch out America.

US government taking over our private pension plans?

Long planned, the current economic storm erupted violently in late 2007. It wasn’t by accident. It was engineered years back, so financial racketeers could profit from wrecking global economies and destroying their middle class, including America’s.

On February 1, 2009, former high-level Wall Street and government insider, Catherine Austin Fitts, explained it an article headlined, “Financial Coup d’Etat,” saying:

A global financial cabal “engineered a fraudulent housing and debt bubble; illegally shifted vast amounts of capital out of the US; and used ‘privatization’ as a form of piracy – a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder….Clearly, there was a global financial coup d’etat underway,” its magnitude overwhelming and incomprehensible to most people, as planned.

Many trillions of dollars have been stolen, shifted from public to elitist private hands – by far, the greatest ever wealth transfer in history, a global heist, sucking capital out of one country after another, including America. It’s an ongoing “de-moderniz(ation)” process, transforming Western countries into third world ones – in real time, in plain sight, yet few people understand.

In stark terms, Fitts says it’s more than just “a process designed to wipe out the middle class. This is genocide (by other means) – a much more subtle and lethal version than ever before perpetrated by the scoundrels of our history texts.”

It’s a government-business cabal for enormous profits through “legislation, contracts, regulation (or lack of it), financing, subsidies,” and massive handouts to Wall Street favorites. Carefully rigged for powerful elitists, the public is so cleverly harmed that few understand what’s happening – literally that their livelihoods, welfare and lives are being destroyed in real time. The America older generations knew no longer exists, the dream of millions wiped out, and it’s also happening throughout Europe.

In his September 30 article titled, “The Neoliberal Experiment and Europe’s anti-Austerity Strikes,” Michael Hudson explained sinister plans “to drastically change the laws and structure of how European society will function for the next generation. If (successful, they’ll) break up Europe, destroy the internal market, and render that continent a backwater. This is how serious the financial coup d’etat has become. And it is going to get much worse – quickly….The bankers are demanding that (governments) rebuild their loan reserves at labor’s expense.” It’s also Obama’s scheme, shifting greater wealth to the rich, impoverishing the rest.

Throughout the West, neoliberals are in control. “From Brussels to Latvia, (they) aim to shrink their economies to roll back wage levels by 30 percent or more – depression-style levels – (for) ‘more surplus’….to pay in debt service,” tribute to global bankers, turning Europe “into a banana republic.” It’s also planned for America.

“This requires dictatorship.” Labor is targeted for destruction. “Europe (like America) is entering an era of totalitarian neoliberal rule.” So-called “free markets” aren’t possible without it. But wait – “This is economic suicide, taxing labor, not the rich, and at the same time “slash(ing) wages and pensions, cut(ting) back public spending and employment, and shrink(ing) the economy,” turning Western societies into dystopian backwaters, a dark future unfolding in real time.

In his October 2 International Forecaster report, former insider and long-time financial expert Bob Chapman adds more about America, saying:

“There is no question that those who control our government from behind the scenes are bound and determined to take over the $6 trillion in private pension plans. Whether they’ll be successful remains to be seen. The Department of Labor wants to force all IRAs and 401ks into the arms of a corporate fascist government, that knows (best what’s) good for you.” They want public investments exchanged for “a guaranteed, government annuity that is not worth the paper it is written on.”

“Small amounts would go into” government retirement R-bonds, the larger portion earmarked for Wall Street – the usual suspects profiting, including Goldman Sachs, JPMorgan Chase, Citigroup, Bank of America, and other giants for even greater market control than already, and far more capital to manipulate for profit. Chapman calls it “monopoly control and subjugation of worldwide investments, a total hold on the control of all investments” to scam the public more than ever and head them deeper into poverty, exactly what Washington and Western governments propose.

On the pretext of reform, destroying Medicare and Social Security are also planned by privatizing them, earmarking them for Wall Street, the same way 401ks killed corporate pensions.

The House Republicans’ “Pledge to America” aims to wreck them by promising to save them, including by “reviewing Social Security and other entitlement programs” – meaning, let Wall Street bandits, not Washington run them.

A longtime GOP priority, congressional Republicans, Reps. Paul Ryan, Kevin McCarthy, and Eric Cantor explained it in their book, titled “Young Guns: A New Generation of Conservative Leaders,” proposing privatizing Social Security and replacing Medicare with a voucher system that amounts to the same thing. If enacted, of course, it will leave workers and seniors high and dry by providing Wall Street racketeers with a new opportunity for pillage.

Democrats have the same plan, to be unveiled in the lame duck session on the pretext of deficit reduction and fiscal austerity, ideas Obama endorses. On February 18, he signed an Executive Order, establishing a “bipartisan National Commission on Fiscal Responsibility and Reform” (a deficit reduction commission) to slash social spending, focusing heavily on Medicare and Social Security. (I might add, have you noticed that Social Security recipients didn’t get a COLA raise last year and it has just been announced that next year 2011 they will not get a raise either. With prices going up on everything, people on fixed incomes aren’t getting a raise? I guess that’s one of the few cuts in spending from the Obama administration……Senior Citizens.)

America’s Economic Landscape

On September 19, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER), “determined that a trough in business activity occurred in the US economy in June 2009. The trough marks the end of the recession that began in December 2007.”

Stacked with corporate economists (practicing what Michael Hudson calls “junk economics”), the types featured on business channels and in mainstream publications, the NBER is a Wall Street tool.

Non-member David Rosenberg has another view, saying “it is very difficult (getting) excited about (today’s) economic landscape.”

Unemployment is dangerously high. It’ll worsen, not improve, and there’s “absolutely no recovery in bank lending – especially to households.” In fact, consumer loans and real estate credit keep dropping, hardly a sign of recovery, besides disturbing consumer sentiment levels, a deep housing depression, and any number of other indicators showing a hugely troubled economy. It’s why independent observers like Hudson and Chapman expect worse to come, a tsunami of economic pain, hitting ordinary people hardest.

A Final Comment

On September 28, the US Census Bureau provided more evidence of economic trouble, reporting America’s highest ever income gap. In 2009, median household income fell nearly 3% from $51,726 to $50,221, the second consecutive annual drop.

Moreover, among all developed nations, America has the highest income disparity, and it’s showing up in record numbers needing Medicaid, food stamps, and emergency food help. In addition, higher levels of poverty, homelessness and other worrying signs show economic weakness, not strength.

Yet, with growing human depravation, bipartisan indifference cares only about serving wealth and privilege. Expect that attitude to harden post-election, leaving growing millions on their own, out of luck, and if new legislation passes as expected, eventually without Social Security and Medicare, once Wall Street bandits gets their hands on them.

On September 18, Obama explained it when he told the Congressional Black Caucus, “You didn’t elect me to do what was popular. You elected me to do what was right,” his hidden message meaning populism will be sacrificed for privilege. As a result, expect lots tougher times ahead because political leaders plan it – wrecking the American dream for business at the public’s expense unless enough outrage erupts to stop it. (I’m going to add…..that is what is being generated among the Tea Partiers……outrage!)

Baltimore Chronicle

Social Security Will Go Bust in 2010

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You might know this is happening now, at about the time I get ready to start drawing what I’ve paid in for almost 50 yrs now it’s going in the red  and one of the ways to prevent it in the future is reducing benefits. That’s just great.

Social Security Will Go Bust in 2010

For the third time in my life, the Social Security System will go belly-up.

Unless there is another Social Security tax increase in 2010, the system will go into red ink mode and stay there.

The public has not been informed of this, which comes as no surprise. There have been a few scattered stories on the Web, but nothing sustained. The media do not want to admit that the jointly operated Social Security program and Medicare program are going to bankrupt the Federal government if they are not cut back drastically.

They are never cut back. They always expand.

Medicare’s Hospital Insurance program has been in red ink mode for two years. The public does not know this, either. To cover the program’s insolvency, the government is quietly funding the Hospital Insurance Trust Fund with bailouts from the general fund.

Politically, this creates a problem. When the Treasury taps the general fund, the expenditure appears on the budget – the on-budget budget – as an expenditure. This immediately adds to the deficit, meaning the visible deficit, the one that gets recorded on those wonderful U.S. debt clocks.

When revenues flow into the four Social Security and Medicare trust funds, the money is instantly handed over to the Treasury, which issues non-marketable long-term IOU’s to the trust funds. These IOU’s are listed as assets by the funds. But, through the wonders of government accounting, they are not listed as liabilities on the government’s on-budget budget. They are liabilities only on the off-budget budget, which most Americans are unaware of. This chicanery has been going on ever since the Johnson Administration (Lyndon’s, not Andrew’s).

The problem facing the politicians is this: when a trust fund is no longer showing a surplus of revenues over expenditures, it has to sell its assets back to the Treasury. The Treasury’s non-listed liabilities must be converted into money to send to the legal recipients. This is a red alert of hidden red ink. The public finds out. The debt clocks speed up.

The Treasury has no money in reserve. Every dollar that it takes in immediately flows out. So, it must get Congress to provide the money for the deficit-running trust funds, either by taxing or by borrowing (increasing the legal debt ceiling).

What’s a Congress to do?

HIDING THE BUST

The Congressional Budget Office released a report in July on the condition of the Social Security trust finds. There are two funds: Old Age Insurance and Disability Insurance. Think of them as “geezers and gimps.” Combined, they are called OASDI. The report offered a table of numbers showing inflow and outflow. It is here.

The table is tricky to interpret. This is deliberate. The political strategy has always been concealment. But if we think through what is being reported in this table, we can spot the ringer.

The ringer is interest payments to the trust funds. The Treasury issued the IOU’s, so it must pay the trust funds interest.

Think: “Where does the Treasury get the money?”

Answer: “The general fund.” Up go the debt clocks.

Look at the figures projected for 2009. Income from revenues (FICA) is $653 billion. Total income is $808 billion. Where did the extra income come from? Three sources.

Taxes on benefits: $21 billion
Federal employer share: $14 billion
Interest: $120 billion

This means that the U.S. government has to pony up an extra $134 billion to pay to itself: $14 billion in taxes paid on behalf of Federal workers plus $120 billion in interest. This is counted as revenue for the OASDI Trust Fund, but it is red ink for the government.

Neat!

Now let’s do a reality check. Subtract $134 billion from the $808 billion reported as total income to the OASDI Trust Fund. Why subtract it? Because this is not income coming from outside the government. We get $674 billion.

What is the expected outgo? $670 billion. The official budget surplus for the OASDI Trust Fund: $138 billion ($808b minus $670b). This is reported by the CBO under “Surplus.” This looks pretty good. For the Trust Fund, it is pretty good.

For the government, the real figure is barely in the black. The official on-budget, count-the-subsidy-as-a-subsidy OASDI surplus for the U.S. government: $4 billion ($674b minus $670b).

This is never mentioned by the CBO. We are expected to figure this out. No one does. It took me several minutes to spot the ringer.

For the entire article go to Lewrockwell.com

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