James W. MacMeekin III

James W. MacMeekin III, of Winter Haven, Fla., is an author with five books to his credit, including “Lincoln Laughing.” (lincolnlaughing.com).
His latest book is “Destination Germany: The Combat Missions of Lt. Col. Charles A. Felts (USAF) (Ret.), His Crew, the 787th Bomb Squadron and Fellow Airmen.” A Korean War-era veteran of the U.S. Air Force, MacMeekin is a former investment manager and educator. He can be reached by e-mail at jameswmacmeekin @yahoo.com.

 

 

Social Security (1935-2011):
Where is the rage?

Saturday, Oct. 8, 2011

By JAMES W. MacMEEKIN III

See the top of the commentary here

“Protect the innocent, we must” was the clarion call of Democrats and Republicans alike. Consequently, our keepers of the treasury invested our silver certificates in worthy causes. For example, Alaska’s bridge to nowhere. Or, new airports that served one plane, with one passenger, every week or so. Of course, the passenger was the requesting politician. Even more egregious were the hundreds of billions of dollars for “entitlement” programs, all of which now consume 70 cents of every federal tax and borrowed dollar.

Today, Social Security receives far fewer dollars than required for disbursement. Economically disadvantaged politicians, and most syndicated columnists (for the most part Democrats, socialists and communists), indignantly inform their fast-declining political and reader base with this inane recommendation: “We have trillions of dollars in the trust fund. Sell a few of our U.S. bonds.”

Actually, there is no “trust fund.” But, there is a problem. China isn’t buying our junk anymore. The Chinese recently have tried to dump some of their trillion-dollar-plus holdings. Another obstacle: The world’s nations are collapsing like pricked balloons. Included in this deteriorating economic atmosphere is the United States of America, which is fast taking on the appearance of Greece and Spain.

For the vast majority of voters, many of us didn’t see this one coming. But, read the following quote carefully. Barack Obama made the following announcement five days prior to his inauguration as president. (These are his exact words. There is nothing out of context.)

“We are five days from the fundamental transformation of the United States of America. Then, the world!” — President-elect Obama, January 2009.

If you’re not frightened by and concerned about the economic and political changes that have occurred over the last 34 months, you are either part of the problem or dumb as a tick on a dog. Or both.

But, I digress. Let’s return to selling U.S. bonds for the benefit of our retirees. First, who will buy 30-year U.S. bonds with a 2 percent annual yield? Well, if you discount the bond price to yield, say, 10 percent and and promise to repay in, say, two or three years, you might get a few buyers for what are now junk bonds. Of course, these actions result in a massive discount from par. To illustrate this last point, the bonds being held by Social Security have a market value of half, maybe even less, of their face value. Putting retirement dollars in your mattress wouldn’t have been better, because of inflation. To illustrate, in 1950, a brand-new, off-the-dealer’s-floor Cadillac cost $3,000. For those of us who haven’t priced a Caddy lately, you can expect to pay in the neighborhood of $50,000. That’s inflation.

OK! Time to summarize. The working man’s dollars went into Social Security. The cash was used for every Keynesian social program necessary to assure the re-election of our political pork-meisters. The government must now issue more U.S. bonds, in exchange for printed dollars, which increases America’s national indebtedness!

That, my friends, is a Ponzi scheme of immense proportions.

Unfortunately, the effect of the Social Security scam is even worse than the efforts of infamous financial scammer Barnie Madoff. How’s that? Investors with Madoff lost only their investment. Some, the early investors, actually profited. But, Social Security continues to send money to our retirees. Therefore, our government continues to borrow dollars it does not have. Ergo, America’s indebtedness rises even more. And you, dear reader, are the ones required to pay down the indebtedness. You are being taxed in order to receive your retirement dollars!

My only question is: Where is the rage?

Now, you might think that this is the sad end to Congress’ criminal activity. But, you would be wrong. With the election of the Anointed One, an economic revelation was brought down from the mount. Words from above boomed to the masses below: “Let it be known: The violent and unpredictable price movements for food and energy have been removed from the Consumer Price Index. Behold! There is no inflation within Obama World. Rejoice! For there is price stability. COLA, the cost-of-living adjustment (for Social Security recipients and other federal retirees), no longer will be. Halakha!”

Were it only true. Since 2009, average prices have surged more than 30 percent. Without COLA, the cash savings for Team Obama amount to more than $120 billion. Without COLA, the cost of living for Social Security retirees has risen $120 billion. This is congressional robbery!

My only question is: Where is the rage?

Now! You might think this is surely the sad end to Congress’ criminal activity. Nope. Wrong, again.

First, a brief review of our security laws. Securities, as in stocks and bonds. These are the rules and regulations that must be followed when trading securities.

If you are employed by a publicly traded company, or by a broker who deals with a publicly traded company, and you come into information that could and probably will significantly influence the price of the company’s stock, you are required to refrain from any stock trading prior to a public announcement of the information. Failure to comply with this rule will lead to heavy fines, loss of profits and employment. Particularly egregious trading actions could lead to imprisonment.

For members of Congress, such laws and restrictions do not apply. This might explain why we have so many millionaires in Congress.

My only question is: Where is the rage?

 

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