1 – BUSH’S IRAQ WAR
TABACCO: A few people and a few Organizations made a lot of money in Iraq – of that there can be no doubt! But We The People are NOT among them! And guess who is going to ultimately pay for the Iraq War – that’s right, We The People!
George W. Bush, Dick Cheney, Paul Wolfowitz and Company,
2 – T.A.R.P. /TROUBLED ASSETS
TABACCO: ProPublica is watching every penny – at least right up to the point where your Uncle Sam gets his paws on it – then NADA!
“updated 5/19/2009 6:43:46 PM ET
WASHINGTON — The race to repay federal bailout money could end up reducing the amount that taxpayers eventually get back.
Some banks that want out of the Troubled Asset Relief Program may be allowed to buy back the government’s investments at below-market prices. That could cut into taxpayers’ potential profits by billions of dollars.
Goldman Sachs, Morgan Stanley and JPMorgan Chase & Co. have notified federal regulators of their interest in returning their share of the $700 billion bailout. Returning the money would let banks avoid restrictions on executive pay and hiring.
Approval for big banks to repay TARP funds could start in early June, a Federal Reserve official said on condition of anonymity because the applications are still being reviewed.
But before big banks can repay a penny and quit the bailout, they must agree to a price for the warrants the government received in return for the original loan. Those warrants gave the government the option to buy stock at a set price over 10 years.”
TABACCO: I only partially republished the above Article because we’re not investigating when, how much or where those T.A.R.P. RECIPIENTS return their Loans. Notice how everyone keeps saying, “Taxpayers” or “Taxpayers’ potential profits”!
We must FOCUS on what happens to the PRINCIPAL REPAID once your government gets its hands on it! Profit or Loss is NOT the point here! The point is WHAT DOES YOUR GOVERNMENT plan to do with the Refunded Principal! Nobody – except yours truly – shows the slightest interest in that question or its answer! WHY NOT! DO YOU KNOW?
Tabacco has contacted Senators Chuck Schumer and Kirsten Gillibrand, Congressman Peter King – all of New York – and several others. Everyone refers me to someone else like the Treasury Department or the Federal Reserve. Nobody seems to know and nobody seems to care!
Something is ROTTEN IN DENMARK!
Do you care?
3 – SOCIAL SECURITY
Guess what! There really is such an animal – at least that’s what the Government claims! So how come Republicans keep telling us Social Security is broke!
TABACCO: So where’s the Annual Figures? Where are these Funds deposited? What is the Current Interest Rate the “Trust Fund” is receiving? How much interest has the Social Security Trust Fund received since its inception? IOUs are STATIC – they do NOT include any subsequent Interest received. And why don’t our elected officials have any details to give us?
Do you believe the Article immediately above?
Or do you believe the Article immediately below?
The Trust Fund Myth
People tend to think of their Social Security benefits as an actual account, in their name, which contains cash or investments. In reality, the Social Security trust fund contains nothing more than IOUs that have no value beyond a promise to impose higher taxes on future workers. The annual surpluses that many thought were being used to build up a reserve for Baby Boomers have been spent on other government programs or to reduce government debt.
Social Security is not like a savings account in which payroll taxes are saved for retirement. Social Security is a pay-as-you-go system, meaning that the taxes paid by today’s workers are immediately sent out to pay the benefits of today’s retirees.
The problem with this system is that it only functions when there are a lot of workers paying payroll taxes and just a few retired people getting benefits. This is no longer the case. Our senior population is growing much faster than our working population and this means there are fewer and fewer workers supporting more and more retirees.
No Cash Is Being Saved
Today Social Security is collecting more money than it needs to pay benefits, but by 2018 it will begin running a deficit—collecting less in taxes than it pays in benefits. Many shrug off this looming shortfall thinking that the Social Security “trust fund” will help pay benefits and put off the need for tax increases or benefit cuts. This is not the case.
The government does not save our Social Security taxes for future retirees. Congress borrows this extra money and uses it to make up for deficits elsewhere in the budget. Thus the Social Security trust fund contains nothing but IOUs the government has written to itself. And when Uncle Sam goes to repay those IOUs, you know who pays the bill: we do.
That means that in order to repay those IOUs, the government will have to either raise taxes or cut programs. Social Security is already the biggest tax that most workers pay, but to keep the system afloat payroll taxes will have to rise even higher—to 20 percent of each worker’s wages.
How the Social Security Trust Funds Differ from Real Trust Funds
The Social Security trust fund consists totally of special issue Treasury bonds and certificates of indebtedness. They are special in that these bonds can only be issued to and redeemed by the Social Security trust funds. These bonds cannot be sold in the open market.
The Social Security trust fund bonds pay the same interest as regular Treasury bonds issued on the same day and in the same maturity. When the bonds mature, they are rolled over into new bonds that include both the original issue amount and any interest due. The new bonds pay whatever interest as regular Treasury bonds of the same maturity issued on that date.
These bonds are really nothing more than IOUs from one branch of government to another. They are not a real financial asset.
Until relatively recently, these bonds only existed as entries in a record book. However, now when a new bond is issued, it is printed on a laser printer located at the Bureau of the Public Debt’s Martinsburg, WV office. The bond is then carried across the room and put in a fireproof filing cabinet. That filing cabinet is the Social Security trust fund.
At some point in the future, Social Security will need to spend more than it receives in payroll taxes. At that point, it will begin to cash in the bonds in the trust fund. Where will the money come from?
According to the OMB, there are only four sources that money can be drawn from.
So which version of the Social Security Trust Fund do you believe? The Propaganda Version or the Real Version? I won’t bore you with my own opinion because you already know it!
Now we ALL know why nobody seems to know anything about the Social Security Trust Fund and why nobody wants to talk about the Social Security Trust Fund or even mention the Social Security Trust Fund. There I said it 3 times in 1 run-on sentence. That’s 3 times more than your Congressman or Senator will say it. And the reason is
BECAUSE IT ONLY EXISTS ON PAPER AND HAS NEVER RECEIVED ANY INTEREST FROM ANY BANK:
If you want to increase the Social Security Income, raising the age of retirement, increasing the rates for working stiffs or – worst of all – PRIVATIZATION are not the only Solutions (TINA: There Is No Alternative).
Corporatists, Investors and Republican Politicos don’t want to hear this and don’t want you to know, BUT do I care what those Groups think!
Tabacco: I consider myself both a funnel and a filter. I funnel information, not readily available on the Mass Media, which is ignored and/or suppressed. I filter out the irrelevancies and trivialities to save both the time and effort of my Readers and bring consternation to the enemies of Truth & Fairness! When you read Tabacco, if you don’t learn something NEW, I’ve wasted your time.
Tabacco is not a blogger, who thinks; I am a Thinker, who blogs. Speaking Truth to Power!
In 1981′s ‘Body Heat’, Kathleen Turner said, “Knowledge is power”.
T.A.B.A.C.C.O. (Truth About Business And Congressional Crimes Organization) – Think Tank For Other 95% Of World: WTP = We The People