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Were America's Assets Looted Years Ago?
Forbes' Merrill Matthews argues that the multi-trillion dollar social security trust fund was looted years ago:
Either Obama and Geithner are lying to us now [in saying that social security checks won't go out if the debt ceiling isn't raised], or they and all defenders of the Social Security status quo have been lying to us for decades. It must be one or the other.
Here’s why: Social Security has a trust fund, and that trust fund is supposed to have $2.6 trillion in it, according to the Social Security trustees. If there are real assets in the trust fund, then Social Security can mail the checks, regardless of what Congress does about the debt limit.
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Social Security status-quo defenders have assured us for the past 25 years that Social Security is fully funded—for the next 25 years, or 2036. So if there are real assets in the Social Security Trust Fund—$2.6 trillion allegedly—then how could failure to reach a debt-ceiling agreement possibly threaten seniors’ Social Security checks?
The federal government has borrowed all of [social security] trust fund money and spent it ... And the only way the trust fund can get some cash to pay Social Security benefits is if the federal government draws it from general revenues or borrows the money—which, of course, it can’t do because of the debt ceiling.
[T]he president is telling the truth now in the sense that he is conceding there’s no money in the trust fund to pay benefits; but he and other Social Security status-quo defenders have been deceiving the public for decades.
Indeed, as the following excerpt from the 1998 Senate Budget Committee session shows, Senator Hollings alleged that the government had already been "borrowing" from the social security fund:
U.S. FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN: .....making sure that surplus is there.
U.S. SENATOR ERNEST F. HOLLINGS (D-SC): Yeah, making sure that surplus is there. I'm telling you, Dr. Greenspan, that's music to my ears.
GREENSPAN: Well, I remember you taking this song a long way over recent years, and I must say, Senator, a number of us were skeptical that was even discussable, figuring we would never get to unified surplus that we said which you were preaching was very interesting, scientifically sound, but unrealistic. I apologize.
HOLLINGS: Well that's all right, because your Greenspan Commission report in section 21 says just exactly what you're saying here. That was in 1983; here now, in 1999, on page two, "simply put, enough resources must be set aside over a lifetime of work to fund retirement consumption." Now that section 21 said set it aside. President Bush, in section 13 3 01 on November the 5th, 1990 signed that into law. And we making headway. Let's understand, though, that we're still running deficits. 'Cause I'm not going along with this monkeyshine about unified. 'Cause unified is not net, the debt still goes up, is that correct?
GREENSPAN: If you're...it depends on whether or not you wish to create the savings...
HOLLINGS: I'm not asking what you're trying to create. The simple fact is the debt has been going up at least $100 billion for the last several years.
GREENSPAN: Outside, on budget, that is correct.
HOLLINGS: That's right, on budget, you're spending a hundred billion more than you're taking in.
GREENSPAN: Correct.
HOLLINGS: And this president's budget spends another hundred billion more than we take in.
GREENSPAN: I haven't seen it yet.
HOLLINGS: You haven't seen it? You're testifying about it now.
GREENSPAN: I haven't seen the budget. You haven't seen it either.
HOLLINGS: Well, you know his plan. Look you think he's going to spend less than a hundred billion more?
GREENSPAN: I will wait to see what the numbers look like.
HOLLINGS: Well, the truth is...ah, shoot, well, we all know there's Washington's math problem. Alan Sloan in this past week's Newsweek says he spends 150%. What we've been doing, Mr. Chairman, in all reality, is taken a hundred billion out of the Social Security Trust Fund, transferring it over to the spending column, and spending it. Our friends to the left here are getting their tax cuts, we getting our spending increases, and hollering surplus, surplus, and balanced budget, and balanced budget plans when we continue to spend a hundred billion more than we take in.
That's the reality, and I think that you and I, working the same side of the street now, can have a little bit of success by bringing to everybody's attention this is all intended surplus. In other words, when we passed the Greenspan Commission Report, the Greenspan Commission Report only had Social Security in 1983 a two hundred million surplus. It's projected to have this year a 117 million surplus. I've got the schedule, I'll ask to put in the record the CBO report: 117, 126, 130, 100, going right through to 2008 over the ten year period of 186 billion surplus. That was intended; this is dramatic about all these retirees, the baby boomers. But we foresaw that baby boomer problem, we planned against that baby boomer problem. Our problem is we've been spending that particular reserve, that set-aside that you testify to that is so necessary. That's what I'm trying to get this government back to reality, if we can do that.
We owe Social Security 736 billion right this minute. If we saved 117 billion, we could pay that debt down, and have the wonderful effect on the capital markets and savings rate. Isn't that correct? Thank you very much, Sir. Thank you, Mr. Chairman.
Ron Paul has called for an audit of Fort Knox, based upon the suspicion by many that the gold was sold off years ago:
And on September 10, 2001, Secretary of Defense Donald Rumsfeld said:
According to some estimates we cannot track $2.3 trillion in transactions.
Were America's assets looted years ago? Or are these mere conspiracy theories (see this and this)?
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Sieze the assets of everyone ever involved in raiding the Social Security Fund, jail them, deport them, and distribute their assets to the American people.
If you never had to pay another penny into Social Security and the cost was that you lose all that you've put into it so far, would you take that deal?
They can have mine, thanks for the memories.
the productive self-employed in America are by the power of gooberment forced into having a top off of their socialist security in the amount of 15% every year or face fines, forfeiture and imprisonment, it is a sinister scheme devised by the men of satan.
You didn't read Richard Thaler this morning. We have the link. Seems everyone who is smart is "topping up" their Social Security. We're good to go.
Dave Harrison
www.tradewithdave.com
There is always plenty of larceny to go around in order to breech the door to the bank.
Anyone here ever see the movie "Kelly's Heroes"?
"There's a tank driver between us and the bank. We can't get in."
"So go talk to him, maybe he's a Republican."
"Make a deal."
"What kind of deal.."
"A deal, deal.."
a few years ago after reading Bob Prechters Conquer the Crash, I moved into T Bills bought directly from Treasury. THe reason was that the new rules, when the stock market went from paperless trading, (199-?) meant that all brokerage houses were running pooled assets. In the event of crisis all asset holders stand in the same line, money market fund holders and options and futures speculators.
and nobody owns anything. the brokerage owns a huge pile of assets, they don't really care if you buy something they either have in inventory, or don't have in inventory. the truth is that banks have done this for years, a client deposits money in a savings account at 1%, THEY invest the money in the stock market. when the brokerage, or bank fails, the saver is no different than the speculator. as BP says the law is written to treat savings account assets as LOANS to the bank. in the event of the banks inability to pay you your assets, the law proceeds in the same manner as the default on a loan.
the broker laughed, but six months later their company set up firewalled bank accounts outside their pool of assets.
the solution with SSN is to set up firewalled accounts, and do it NOW. It is not too late, as long as the political will exists, and the public insists this money be placed outside the operating budget, the pooled assets of the USG, then everything will be okay.
now imagine the American public whining about this added level of protections, and what Obama would say, and have yourself a good cry. Its not that the money isn't there, its that the professional thieves are in charge.
good post
They weren't spending the trust fund. They were investing it in government projects. Now the return on the projects might have been low. That's their problem. Time to pay benefits in full. Or return boomer contributions in full with interest (IRS level interest) and shut the whole charade down. Then I can see what return I can earn on my funds.
There IS NO TRUST FUND!! BUT it IS funded. It takes in MORE than it pays out. So don't worry your little hearts about checks not going out.
yes, george, the usa was looted decades ago beginning at least with the london gold pool which sold off gold at 35-42 usd per oz to suppress the price of gold to fund the criminal war in vietnam which was designed solely to advance usa weapons technology, line the pockets of murderers and kleptocrats, run the drug trade all in the name of stopping international communism which was being fanned by the rockefeller-rothschilde axis of evil....
the liar-in-chief may be telling some small twisted truth about social security checks....granting that the trust fund has what it claims (very doubtful), i believe that the us government prints the checks.....without funding to print/deposit the money, there will be no payments made....a small technicality but one which a liar like the indonesian tele-prompter-in-chief would relish.
BANK OF AMERICA: In 2009 and 2010, Bank of America didn't pay a single penny in federal income taxes, exploiting the tax code so as to avoid paying its fair share. They argue this is because they lost money. But we really don't know, thanks to over 115 subsidiaries in tax secrecy jurisdictions. There are 59 BoA subsidiaries in the Cayman Islands, 15 in Luxembourg, and 14 in Ireland. Bank of America received $336 billion in government bailout funds (second only to Citigroup).3 When it comes to paying their top managers and influencing elections and government, they don't hold back. Between 2007 and 2010, during the economic meltdown triggered in part by their reckless actions, Bank of America's PAC and employees donated $5.184 million to federal campaigns. During these same years, they spent $17.3 million lobbying the federal government.4 Bank of America paid their CEO Thomas Montag $29 million in 2009.
http://blog.sojo.net/2011/07/15/poverty-treasure-islands-and-global-tax-dodgers/
The two biggest recipients of taxpayer bailout funds are, by no coincidence, huge users of the offshore system: Citigroup has 427 subsidies in tax havens, and Bank of America has 115.
I must say that when I read that Prezy O threatened to cut off SSI, it was (as best I can tell) the first "official" admission that SSI is truly a ponzi scheme. There is no "trust fund" suckas!
The US Federal Government hasn't paid down a dollar of total debt since President Kennedy was assassinated, back in 1961.
Over 80 million residents of the United States immigrated or are the descendants of immigrants who arrived in the country since 1970.
THe value of the US Dollar has lost 82% of it's purchasing power since 1961...
Everything had been stolen before the majority of Americans were born or immigrated to the United States.
Here is the problem:
Computers.
As soon as they unhinged from the gold standard and computers began shooting 1's and 0's around the Internet, physical manifestations of money died.
How many armored trucks have you seen lately?
"Gold? Who needs it? The database says we have money."
You can make money appear or disappear with a keystroke or a click.
Who holds the keys?
You or I can't do this magic, but anyone with the right password and access can do it.
No truck, no bag, no gaurds, no locks, safes, paper or palletes. In an instant it is there or not there.
Now throw in human nature and the ability to steal with impunity.
the sheeple will never be able to follow up where this 2 trillion went because any records that may have existed before 9/11 were blown away when the missile hit the area of the pentagon where the records were supposedly being stored. you got to hand it to these jackels, they seem to always have a trump card waiting to be played.
Eventually you will have some grannies show up outside the US capitol with uzi's or bomb vests. Thats the only way this looting will change.
Jesus fucking Christ, is there anyone with two working brain cells to rub together who doesn't know that SS payments have been going into the general fund since the program was started? Does GW think that he's actually saying anything NEW here? There is no trust fund or special account for SS monies and never has been. The cash goes into the budget and gets marked on IOUs in a drawer in Washington, somewhere.
The so-called SS "lock box" consists of a file cabinet in a government office in Parkersburg, West VA. The cabinet holds a few trillion dollars in "non-marketable Treasury Securities", meaning IOU's you can't sell like regular T-bonds.
http://www.cleveland.com/nation/index.ssf/2010/03/social_security_to_sta...
If you're down to just two working brain cells, you probably shouldn't rub them together.
Just sayin'.
Ponzi backed by toilet paper.
You don't have to pay Social Security tax. No one is forcing you to produce income.
No "income". No income tax. STARVE THE BEAST!!!!!!! That doesn't mean you still can't make money.
Since the 1970 the SS trust fund surplusses have been counted with general revenues to make the latter look "better", which allowed for additional tax cuts.
And since the Greenspan Commission and Boskin Commission which changed how COLA is calculated, the retirees have lost 2/3 of what they are entitled to. How do you think an obscure economist named Greenspan became the darling of Reagan administration and was appointed to chir the Fed? Easy: after manipulating facts in a way that reduced COLA for retirees, basically robbing the poorest and providing a cushion for the most egrigeous and irresponsible (until GW Bush) tax cuts!
The SS 'Trust Fund" contains non-negotiable IOUs.
Or in plain English: worthless promises to "pay at a later date".
according to the Bernank at last weeks HH testimony most Americans don't quite understand the nature of how Social Security is accounted for
http://www.c-spanvideo.org/program/BenBernank/start/3689/stop/7777
Oh wow! The Bernank appears to comprehend Social Security as little as he comprehends Great Depression economics --- what a complete douchebagger!!!
So what was the purpose of all that double-taxation for FICA/S.S. beginning with that outlaw Reagan?????
Just for show???
The Bernank is in need of returning to school and actually learning something about finance and economics, especially all that debt speculation going on out there --- like in America and Greece, for starters.
And a special tutorial on naked derivatives and the naked credit default swap!
Anyone after Reagan who believes that there are set-aside dollars in a Social Security Trust Lock Box to pay retirees also eats three helpings of hopium a day and defecates rainbow colored skittles (note I said colored, not flavored).
Truth is that Social Security "Surpluses" are calculated on the difference between what is taken out of paychecks and what is paid out in benefits. The "surplus" is duly noted prior to the funds being placed in the general fund for US Government expenses.
The only "funds" are US Treasury notes that say "IOU". They are "notes", just not Federal Reserve "notes". As long as the amount coming in is more than is being paid out, the government can continue to paste over the abscess.
Treasury dept. of the Pentagon gets hit by a cruise missile on Sept. 11th, 2001, a day later after Mr. Rumsfeld announces $2.3T missing in unknown transactions.
It's a coincidence, bitchez. :)
But seriously, 9/11 was needed in order to bring closer integration around the world and on the North American continent: you can't just merge Mexico/Central America with the United States without first lowering the standards of living of the latter. :-)
"9/11 was needed in order to _________"
it was done in order to accomplish quite a variety of things. these big events always are.
Looks like there may have to be another "big event" on the horizon...
America's gold is probably at the BIS or in Israel. Same thing.
I can't help thinking about Goldfinger and his plan. I wonder what would happen to the gold price if there were a few well placed nukes delivered to the Promised Land by ?
Haha, i remember watching James Roosevelt, FDR's grandson, debunking the "mythology of fear" surrounding the SS Fund. Saying it is the most responsible and successful program ever created by our govt. (paraphrasing) "The fund has a 2 or 3 trillion dollar surplus, and it's all there, every penny accounted for....in the form of US bonds." It reminded me of Dumb and Dumber. "Where's the money? It's all there, every penny meticulously accounted for on these IOU slips."
In case anyone wanted to see it.
http://www.youtube.com/watch?v=7GSXbgfKFWg
"Carthage must be destroyed"
Carthago delenda est.
Funny....$2.6 Trillion is about the size of the Fed's current holdings...so yes, it has been looted.
Sooner or later, one way or another, we as a nation are going to discover that our sovereign gold has been encumbered. The collective response to and consequences of that discovery will be cataclysmic to our current way of life.
"Were Americas Assets Looted Years Ago?"
America is one gigantic criminal counter party trick bag.
After the SHTF the only thing that will count are the assets in your possesion and how prepared you are to protect them.
Why? It's just about a long-term tradition after all. An encumbered long-term tradition.
And what about the gold of Germany, Holland, and a couple of other nations?
http://www.youtube.com/watch?v=NOKhQ8ObQ7E
Are you kidding me ? The Germans can say goodbye to 'their' gold, 1 good thing is you can't destroy gold and why would you so that gold is somewhere but finding it and collecting will be the tricky part
"And... It's gone..." (South Park)
What did you expect? ;-)
You get Nothing, its gone.
http://www.youtube.com/watch?v=M5QGkOGZubQ&feature=related
for any who havent seen it or want a reminder..
"and its gone.."
This link does not work for me, but your point, that reminder is never hurt, is well taken, so here you go YouTube version: http://www.youtube.com/watch?v=RAKsMnAM8vk
Under the Supreme Court Case Helvering v. Davis case. On November 12, 1936, "(Social Security payments) are not earmarked for any special purpose." They are (Social Security payments) "true taxes, their purpose being simply to raise revenue . . . available for the general support of Government." This was a Supreme Court decision questioning the constituionality of Social Security
There is no Social Security Lock Box BITCHEZ!
Al Gore's lock box idea for Social Secuirty was spot on.