“Great talker, great liar.”
President Obama won’t be able to pay out social security checks if the debt ceiling isn’t raised, but he’s been saying all along that Social Security is solvent and the money is secured until 2037. If it’s solvent, that means there is actual money to back it up. So which is it? Can’t have it both ways.
Jack Lew, Obama’s Budget Chief said back in March that there is no need to fix Social Security because it is solvent until 2037, in other words, the money is in a lockbox somewhere. Jack Lew speaks for President Obama. It was an obvious fabrication since the money secured for SS is a mere accounting trick or a bookkeeping device as you’d have it. The deceit is even more obvious now that President Obama claims not raising the debt ceiling would mean Social Security checks would not go out to the elderly or the handicapped. If SS is not in need of reform and in a lockbox somewhere, why not send the checks out?
The lie is bald-faced and in our face. The money collected for social security (FICA) has gone first to current retirees and then the rest went into the black hole. The black hole is whatever the Treasury decides it is. The Social Security Act specifies that the money may be invested in securities backed by the Federal Government, which includes treasury bonds, treasury notes, treasury bills and special issue notes. Therefore, the government can lend the money to itself as an investment and then spend it on whatever. The government pays it back when social security redeems the bonds.
Since the money going out now surpasses the money coming in, social security is now adding to the deficit and will go into default at some point. The lockbox does have IOU’s in it, also known as special issue bonds. The program has become an unworkable Ponzi Scheme as the ratio of workers to collectors is proportionately in favor of collectors. We have record-high unemployment and increasing numbers of baby boomers.
Aside from the fact that Social Security must be addressed and addressed quickly, President Obama’s view of the SS solvency issue varies depending on the message he wants to send. One month, he says the system is fine and then it’s not fine. The rapid thought shifting could cause brain bruising.