Sunday, January 30, 2011

The Golden Horn of Plenty

Now Running Dry.

Almost seventy-five years ago President Franklin D. Roosevelt asked for, Congress passed and he signed into law the Social Security Act, officially called the "Federal old Age and Survivors Insurance Act". This program was financed by a small FICA (payroll) tax on employees and employers alike which was paid into a special fund within the Federal Treasury to be used exclusively to pay benefits to the elderly, disabled and in some cases their survivors. Being quite young at the time, I don't know exactly what controls were put into place to ensure that this money would be there when needed but I'm sure there must have been a plan.

Not knowing what that plan was caused me to try to envision, how it might have worked then and why it is so maligned today. If you will bear with me now and picture in your mind a large Golden Horn of plenty, large enough to hold many years of deposits from that payroll tax, with an overflow pipe connected directly to the Federal Treasury Department.

In 1965, as part of President Lyndon Johnson's "Great Society" program a bi-partisan Congress passed and he signed the Medicare bill as an amendment to the "Social Security Legislation" and raised the FICA (Payroll) tax to 7.68 percent on employers and employees alike with 1.45 percent going to Medicare and the balance to Social Security. By this time the Horn of plenty was beginning to fill up and may have been near the point of overflowing. By 1990 the surpluses were overflowing into the Treasury Department with no real plan as to how to handle it so Congress created the "Social Security Trust Fund" as a depository into which the Treasury Department can deposit the "Special Government Securities" (IOUs) which represent the surplus or overflow money from the Golden Horn of Plenty. Now that Horn only holds operating capital, just what it takes to pay Social Security and Medicare benefits along with a part of Medicaid with the other two and a half trillion dollars being in the Trust Fund in the form of securities or IOUs.

A few years ago the Social Security Trust Fund was due to reach the break even point, when the income would equal the outgo in benefits, about 2012 but in December of 2010 in the process of extending the President Bush era tax cuts for all taxpayers a compromise was reached which included the cutting of two percentage points from the payroll tax, which would amount to about 143 billion dollars. Now that break even point will probably be reached this year. It is my opinion that the reaching of that break even point is causing most of the fear mongering today. Social Security and Medicare are not, at this time, taking any money, other than payroll tax money, from the Federal Treasury and does not contribute to the budget deficit or the balooning of our national debt. Whenever the time comes that Social Security needs more money to pay benefits than is coming in from the payroll tax then the Treasury will be forced to borrow money to buy back some of those IOUs. That will add to the National debt.

To sum it all up, just picture this; A giant Golden Horn of Plenty with money flowing in from all directions. It can not hold it all and is overflowing into a pipe which carries it directly into the Federal Treasury Department where it is exchanged for IOUs. These IOUs are deposited into the Social Security Trust Fund where they will remain until the amount of money needed to pay all Social Security and Medicare benefits passes the amount coming in from payroll taxes. At that time Treasury will have to borrow money to buy back some of those IOUs and someone will have to explain where and why that money was spent with nothing to show for it. Well, that time has come and many politicians and some news people don't know how to explain it so they just blame us old people for living so long. I'm sorry but I just don't think it is my fault

Thanks for your time and input. Stay tuned, - William

Wednesday, January 26, 2011

Unfathomable

Or just plain Stupid

AAH YES! The State of the Union Address. Did you watch it? Did you Listen to it? Did you hear anything new? If so, did you believe it? I neither watched nor listened because I knew I could hear anything worthwhile (or otherwise) today (many times).

I thought about not even writing anything today after finding the post written months ago, saved but never published until yesterday but I had nothing else to do so here I am plinking away on my keyboard.

Even though I don't have all those fancy degrees after my name and I have never traveled very far out of my home state, I have never before considered myself to be stupid. But now, after dozens of attempts to explain the fallacy of the contentions, of most politicians, that Social Security and Medicare are, in their own words "The biggest drain on our national Budget", and with no visible results, either way, (in other words, being ignored) I am almost to the point of believing that I am. I have promised myself, several times, that I would give up the fight and let someone else do it but I have children and grandchildren who will be harmed immensely if this once great nation is allowed to continue to travel on the road to destruction.

One more time; If Social Security and Medicare could be restructured in such a way as to be revenue neutral, that is bringing in from the payroll tax the exact amount it takes to pay all benefits, stretching into infinity so that the two and a half trillion dollars in IOUs held by the Social Security Trust Fund would never need to be cashed in, the politicians wouldn't have to explain why they stood by and watched, at the least, the Trust Fund money being used as a high stakes slush fund.

I don't want to get bogged down again in long, drawn out explanations of the differences in viewpoints of most politicians and the, so called, comman man so that's it for today. Thanks for your time and input. Stay tuned, -William

Tuesday, January 25, 2011

Executive Order

No money for abortions.

The Executive Order signed by President Obama on May 24, 2010, two days after he signed "Obamacare" into law is copied, in part, below.

"The act establishes a new Community Health Service (CHS) fund within Health and Human Services (HHS) which provides additional Federal Funds for the Community Health Center Program. Existing law prohibits these Centers from using Federal Funds to provide abortion services (except in the case of rape or incest or when the life of the woman would be endangered), as a result of both the Hyde Amendment and long standing regulations containing the Hyde language. Under the act, the Hyde language shall apply to the authorization and appreopriation of funds for Community Health Centers under Section 10503 and all other revelent provisions. I hereby direct the Secretary of HHS to ensure that program administrators and recipients of Federal funds are aware of and comply with the limitations on abortion services imposed on CHS by existing law. Such actions should include, but are not limited to, updating grant policy statements that accompany CHS grants and issueing new interpretive rules."

In my opinion, the key words in the above Executive Order are; "Limitations on abortion services imposed on CHS by existing law" and "Updating grant policy statements that accompany CHS and issueing new interpretive rules". Since the Order was signed two days after the Health Care Bill became law then "Obamacare" was the existing law. Interpretive rules can change a law into whatever they want it to be.

I believe that the Executive Order which Representative Bart Stupak got in exchange for his vote on "Obamacare" is worthless. We probably won't know for sure until after the election in 2012. If President Obama is re-elected, I predict that Federal tax money will be used to pay for abortions unless new laws are passed or "Obamacare" is repealed. Thanks for your time. Stay tuned - William

I knew I had written this article not long after the fact but couldn't find it on the blog. while looking through my previous postings I found that it had been saved but never posted. Now it has been. Thanks, William

Sunday, January 23, 2011

A Brick Wall

Without a Door.

First an announcement, as of January 19, 2011 WildBlue Satellite has been dis-installed. We will, for the time being, be using NetZero dial-up service which will be slower but more reliable.

Sometime around Thanksgiving of 2009 I began a one man campaign against "Obamacare" by e-mailing my Senators, most everyone on Fox News, (as much as I hate to admit that I watch Fox News that much), newspapers and talking to anyone who would listen. I wanted someone (the more the better) to help me protest the twice use of money saved in the Medicare program by cutting payments to doctors and hospitals and / or cutting waste and fraud in Medicare (which probably wouldn't or couldn't be done), then using that phantom money to both shore up the Social Security Trust Fund for future generations and used a second time to help fund "Obamacare". The Administration claims they can save a half trillion dollars over ten years from those cuts (that probably would never happen) to be used to make "Obamacare" appear to save money. David Copperfield would be proud of a trick like that.

Some of my e-mails were also in defense of Social Security and Medicare against the claims that those two programs are the biggest drain on our National Budget and must be cut before we can lower the budget deficit and by extension the National Debt. Now I fear that the time has come to just throw up my hands, turn off my computer and try to forget it all but, just for fun, I'll make one more short presentation of facts or as near as can be ascertained. At the end of 2009 "The Social Security Trust Fund", which pays all Social Security and Medicare benefits, had a surplus of two and a half trillion dollars. The year 2010 added about another 77 billion dollars to that surplus. This money all came from the FICA or what most of us call "payroll" taxes. Yes, I know, that the Trust Fund money was invested in "Special Government Securities" and then that money was used by our Government to pay for other programs which were not backed by trust funds. Those Government Securities are backed by the full force of our Government and are due and payable upon demand.

Within the next few years that trust fund will reach the breakeven point (income will equal outgo) and that point will get here even earlier now that the President and Congress cut two percentage points off the payroll tax for the next year. Until we reach that break even point, Social Security and Medicare will still be fully self-funded (pay as you go) and will have nothing to do with the deficit. There just won't be as much surplus coming in, from the payroll tax, to be used for other un-funded programs. The biggest problem for the politicians is that when the Trust Fund needs more of its money to pay Social Security and Medicare benefits the Treasury will have to borrow the money to buy back some of those Government Securities and that will add to the deficit and the National debt. Some people are going to great lengths to make it appear that Social Security and Medicare are the culprits in the huge deficits being run up today but that simply isn't true.

Yes, again I know, Social Security and Medicare will be on the brink in a few years and needs to be reformed - the sooner the better. I have already suggested one way to shore up the Social Security Trust Fund and pay down the National debt but have had no takers at this time. I am willing to forfeit between one and five percent of my almost eight hundred dollars a month Social Security check to be returned to the Trust Fund to help keep it solvent for future generations IF all Federal and State employees (and other highly paid workers) will agree to give up the same percentage to help pay down the National and State debts. I will also agree that the retirement age should be raised, especially for full benefits. If we started with the present retirement age and raised it one year every five to ten years it should work out okay. With IRAs and 401Ks most people should have better retirement opportunities in the future.

I won't hold my breath until someone else agrees with me on these propsals but don't blame me for the bankrupting of America. My time is up for today. Thanks for your time and input, stay tuned - William

Wednesday, January 19, 2011

Pre-existing Conditions

And other trivia.

Whether you are an occasional reader or a regular, I urge you to check out the posting titled "California Dreamin'" at , tomallen3.blogspot.com .

What, exactly, is going on in Washington? What is so important about the "Pre-existing Conditions" segment in the Health Care Law that was passed in 2010 but doesn't take effect until 2014? One claim against the repeal of "Obamacare" is that anyone with pre-existing conditions could not buy insurance. What makes that different from what it is now? Last month I attempted to change my Medicare Supplemental Insurance from my present carrier to a competitor with lower rates but was turned down because of a pre-existing condition. This was during "Open Enrollment", whatever that means. My condition is not life threatening or one likely to cause excessive doctor's treatment. In fact, my appointments are to see a Technician twice a year and my Doctor once a year. I suppose that is too much.

A Mexican family, with the help of an American attorney, filed a 25 million dollar lawsuit against the United States on behalf of their 15 year old son who was killed by a Border Patrol Agent. It has been alleged that the attack on the Agents was part of a human smuggling operation. It is also alleged that the 15 year old, along with others, was throwing rocks at the officer who fired the fatal shot. I don't know what the situation was but in the tape shown on television there appeared to be several rocks (or objects) flying through the air toward the agents. My question is; did that Mexican family come into the United States, look in the Yellow Pages, pick a lawyer at random, go to that address and hire him / her or did that lawyer go to Mexico and hire a client to front a multi-million dollar lawsuit? You be the judge in this case.

Various commentators on television have referred to Islam as "One of the world's great religions." If they were referring to sheer volume that might be true but if it is a claim of virtue then, in my opinion, someone should go back to their history books and study the birth and avowed purpose of Islam. In this blog, at least four postings (May 15th, August 1st, August 4th, and August 8th), were written in part or in whole about what I consider to be a direct threat to Christianity. Islam may be one of the world's great religions but at the same time it is, again in my opinion, one of the greatest enemys of almost all other religions. Convert by the sword or die by the sword, if not their motto was and may still be their philosephy.

The snow from last week is almost all gone but the weatherman has been telling us to be prepared for more about Thursday (tomorrow) afternoon. I don't think I need any more. Thanks for your time and input, stay tuned. - William

Sunday, January 16, 2011

Wrong Tax Cut

It Adds to the Deficit.

I know I watch too much television. There, I admit it but what can I do about it? At this time the temperature is in the thirty to forty degree range outside (a little warmer inside) and large parts of the ground are still covered with the snow that fell almost a week ago.

Yesterday morning I heard a newsreader say that the two percent payroll (FICA) tax cut was now in effect and would mean that workers would save (what I understand to be) about 143 billion dollars a year. I heard nothing about what that would mean to Social Security and Medicare or the budget deficit. This year the money payed into the Social Security Trust Fund through the payroll tax (before the two percent cut) would have been about what will be paid out in Social Security and Medicare benefits but after that cut the Federal Treasury will have to borrow that much (143 billion dollars) more money to buy back some of those "Special Government Securities" (in the Trust Fund Lockbox) (ha-ha) in order to keep Social Security afloat. Then that will be blamed on us seniors who are retired.

All that talk about cutting the deficit by a hundred billion dollars has been rendered null and void by the misguided vote of congress and a few strokes of the President's pen. How ironic.

A few days ago e-mails were sent out to seven would-be newspeople using the same text which is copied below.

"In a posting on williamlee100.blogspot.com titled "Wake up America" and dated Nov. 24, 2010 you can find in the first paragraph these words; "That money has been, and probably still is, been used as what amounts to a high stake slush fund."

At about 5:30 pm central time on Brett Baier's "Special Report", Jim Angle when referring to the problems with Social Security and what had happened to the more than $2.5 trillion in the Social Security Trust Fund made this remark; "Some people call it a slush fund."

Could there be a connection or is Fox News just now catching up?"

Needless to say, there has been no comment in response to those e-mails but on the otherhand, I wasn't expecting any. I think I will send a copy of this posting to my U.S. Representative along with my thanks for her good work. Meanwhile thanks for your time and input, stay tuned - William

Thursday, January 13, 2011

Politics as Usual

Jump right in

Never mind waiting, even a few hours, for the facts (in any given situation) to be brought out. There are too many narrow-minded people ready to jump right in and start agitating, within hours of that tragedy in Tucson the blame game had already started. The alleged shooter, Jared Loughner, was accused of many different agendas but after the evidence began to come in it appears that his main problem is mental. When a person, as alleged, hears voices in his own head he probably isn't listening to the outside world. In today's society, how do you handle such a problem?

The rush to get on the air with their own agenda was, in my opinion, a rush to justice by individuals and parties anxious to exploit the situation by blaming everything on the gun lobby, conservatives in general and people like Sarah Palin in particular but regretfully not much blame as to their own party's involvement. If there is to be blame placed on political rhetorics it probably should be bi-partisan.

As I sit here at my computer, I've been thinking about a way of life that I can't understand. I am not a typist and am barely computer literate. The average 10 year old knows more about all those electronic gadgets you can find on the market today. I don't regret growing up when I did but I can't help reflect on the changes that have taken place even in the last fifty years. For people like us, our children and grandchildren are the NOW generations and we pray that they will be up to the challenge, will step up to the plate and made this world even better than it is now. Believe me, that will be a challenge and they will need all of our prayers.

If you listen to the news, at all, you know that there are too many acts of violence taking place in our towns and cities in the United States of America and all around the world. Pray for change. That's the kind of change we need. "He said you've got to pray for your fellow man so this time, this one is just for you." Thanks for your time and input, stay tuned. - William

Monday, January 10, 2011

Tragedy in Tucson

Many prayers are needed

For whatever reason, we didn't have our television on yesterday morning and when I turned it on about one o'clock pm the tragedy in Tucson was already in progress. Naturally, my first thoughts and prayers were that no one was seriously injured. As you already know, that's not the way it turned out but everyone involved, in any way, still need all our prayers. I can't even imagine what a person is thinking when they commit such an act but, as hard as it might be, we should all pray for the shooter too.

I have only seen Representative Giffords on television but from her coverage by the newsmedia she has almost become a household name and if I might be so bold I would like to send this out to her.

"To Gabby"

Last week I heard a man on the radio / preaching about the things we need to do / he said, you've got to pray for your fellow man / so this time, this one is just for you / Lord, may her next twenty years be as happy as the last / don't let the sparkle in her eyes fade away / may she never have a reason to doubt that You are with her / and send her an extra blessing today / never let her troubles be more than she can bear / then help her through the darkness before the dawn / and if the time should come when she thinks that You're not with her / Lord give her the strength to carry on / I've heard a lot of prayers in my lifetime / and through the years I've said more than a few / to help me through these troubled times we're living / but this time, this one is just for you."

The last twenty plus hours has been almost non-stop coverage of that shooting and if we can judge by the past it will go on for several more days yet. Early this morning I saw on the Fox News ticker a note that one policeman was killed and another wounded when they responded to a fight at a Baltimore, Md. nightclub and even though I haven't heard anything on the news about it yet I suppose it is true. Again I'll say, "What is this world coming too?" There's way too much anger on both sides, or all three, about the state of affairs in Washington but the place to take that anger is to the ballot box. If we don't like the way things are being done we can vote the rascals out but too many time it's the other party's rascal we want voted out.

Just a note on the Health Care Law which is usually called "Obamacare" that had been scheduled for a repeal vote next Wednesday the 12th of January. Because of the shooting in Tucson the House of Representatives, now controlled by Republicans, has deferred that vote indefinitely. That, in my opinion, was the right thing to do. We all know that it can't be repealed at this time and the Republicans should take this extra time to lay out, at least, an outline of a proposed bill to replace "Obamacare." That bill should include; Tort reform, Insurance across state lines, No pre-existing conditions, Children on parent's healthcare to 26, Help with donut hole, Absolutely no tax money for abortions or agencys that promote abortion, Federal oversight of insurance companies since the states don't seem to be doing their jobs and other points to be agreed on. Would that be too simple?

There is nothing I can add to the news coverage of that horrible event in Tucson so I'll let you get back to the television. Thanks for your time and input. Stay tuned, - William

Wednesday, January 5, 2011

The People's House

But for how long?

Today is one of the biggest days in Washington, D.C., the changing of the guard in a way, when the newly elected Representatives and Senators of the 112th Congress will be sworn in. How long will it be before they will be sworn at??

The posting of June 13, 2010 and titled "The Ditch" was first written, as a letter to one of our local newspapers, shortly after the election in 2006 and updated by adding the words "and the debacle of 2008" when it was published in this blog. Please read or re-read it so you will know that there is a danger of the same thing happening again. When the Democrats came into power in 2006-7 and then were re-enforced in 2008-9 they seemed to think that they had been ordained to carry out a political cleansing. Now that the roles are reversed again, will the Republicans fall back into that ditch??

The following is an open letter to all politicans, newspeople, government workers or any other concerned citizens.

For months, I have listened to most everyone on television rant about how we (as they see us) spongers on Social Security and Medicare are causing most of the problems with the run-away Federal Budget. I want to, for the about the fourth time, make a proposal. I am willing to (put my money where my mouth is, as they say) forfeit between one and five percent of my, less than eight hundred dollar Social Securith Check, to be retained in the "Social Security Trust Fund" and used to shore up that fund for future generations IF each one of you who reads this will agree to deposit or have deposited the same percentage of your paycheck into an account within the U.S. Treasury Department which would be designated to pay down our National Debt. If that is not agreeable to you or you do not wish to promote such an agreement, then you should not continue to blame us for the bankrupting of America.

For many years I have been laboring under the impression that I was a conservative and had been writing to newspapers, politicans and others about the way they were blaming Social Security and Medicare for all our budget problems but then, yesterday, I saw Eric Kingson (a liberal) on the Neil Cavuto show. Mr. Kingson absolutely refuted Mr. Cavuto's contention that Social Security was broke and was causing the budget problems. I couldn't have made the argument any better myself so I guess that makes me a liberal. Sorry about that. - The problem is that all the Social Security Trust Fund's money has been spent and nobody wants to admit that if it was replaced tomorrow the treasury would have to borrow the money and our debt would then be almost seventeen trillion dollars. Think about it, that's a lot of money.

I've had computer trouble all day, sometimes I wonder if it was even meant for me to get this posting done. Thanks for your input and for sticking with me. Stay tuned,- William

Sunday, January 2, 2011

Bi-partisanship

Or compromise

In a few more days our 112th Congress will convene in Washington to take up where the 111th left off just before Christmas but it will have a very different makeup. In the November election the Republicans gained enough seats to give them a majority in the House and closed the gap in the Senate. It now appears that the repeal of "Obamacare" is at the top of the Republican agenda while the Democrats, who shunned all appearances of bi-partisanship for the last two years, are now talking about compromise. Odd what an election can do, isn't it?

In my opinion there is no way "Obamacare" can be repealed. If it, somehow, gets enough votes in the Senate to pass the President would veto it and there would not be enough votes to over ride a veto but there might be enough support to repeal and replace. That's where bi-partisanship and compromise comes into play.

I would suggest that our Congressional leaders get together and do a little old fashioned "horse trading". They could start with the Republicans taking "Tort Reform" - this could drastically lower malpractic insurance - and the Democrats could take "Insurance for Pre-existing Conditions" - from Obamacare -. Next the Republicans could take "Insurance Across State Lines" - also to help lower insurance cost - while the Democrats could have "Children to Stay on Parents Insurance to Age 26 (also on Obamacare). Next the Republicans could take "Absolutely no Tax Money Going for Abortion" - or to agencys which advocate abortions - and the Democrats could have "Federal Oversight Over Insurance Rates". Any other points could be agreed upon. Would that be too simple?

I believe, without going back to check, that a few weeks ago I noted that I had written an e-mail (via web page) to one of my U. S. Senators requesting information as to why so many politicians and, so-called, news people insist on blaming Social Security and Medicare for most of our budget problems despite the fact that Social Security and Medicare are paid out of the "Social Security Trust Fund" which at the end of 2010 had a surplus of two point five trillion dollars and growing. Also mentioned was that I got a call from a young man in that Senator's office. He tried to explain it to me but I don't think he did very well because I didn't know any more when he hung up than I did before his call.

Maybe that is the reason I'm not as optimistic, that anyone will ever listen, as I was in the beginning. As one last attempt (maybe) to get my point across I am sending a copy of this blog posting to that Senator. I will let you know if anything comes of it. Thanks for your time and input, stay tuned. - William


P.S.
I have tried to list all material used in this blog as to their source and all poems not credited to others are from the copyrighted book "Expedition to Nowhere". Today I am listing my e-mail address (subject to change at any time). Thank you williamlee100@netzero.com - William