More of the Same

Just over and over.

I had barely finisded writing last Sunday's posting before the news started changing. An earlier report indicated that the Nuclear Reactors were beginning to stalilize but a few hours later they were trying to go critical again. As of last night things were not much better but you can't always depend on the news being right. Only time will tell the true story.

My favorite anchor on Fox Business News network is Gerri Willis and even though she has read several of my e-mails on her program, I still don't think she fully understands exactly what Washington politicians (all parties) mean when they say; "We can't balance the budget until or without doing something with entitlements" (meaning Social Security and Medicare). They produce data like; "Entitlements take up fifty-seven percent of all Federal spending or Social Security is the single largest Federal spending program and then say; Most people just don't understand the problems created for the Federal Budget by Social Security and Medicare." I have written about this several times and more than once promised that time would be the last but for some reason I just can't let it go. One more time I will point out the wrongness of their reasoning while admitting that there must be reforms made in the program for Social Security to even survive. CAPITALS USED FOR EMPHASIS.

IN NINETEEN HUNDRED AND NINETY, CONGRESS PASSED A LAW SETTING DOWN GUIDELINES AS TO HOW THE SURPLUS MONEY COLLECTED THROUGH THE FICA (PAYROLL) TAX WAS TO BE MANAGED. THE SOCIAL SECURITY TRUST FUND WAS CREATED TO BE USED AS A DEPOSITORY FOR ALL PAYROLL TAX MONIES. THIS TAX MONEY, IN THIS TRUST FUND, WOULD BE USED TO PAY ALL BENEFITS TO ALL SOCIAL SECURITY RETIREES AND ALL MEDICARE BENEFITS. SURPLUS MONEY IN THAT TRUST FUND COULD BE BORROWED BY THE FEDERAL GOVERNMENT AND REPLACED WITH "SPECIAL GOVERNMENT SECURITIES" (IOUs). AT THE END OF TWO THOUSAND AND TEN THERE WAS A SURPLUS OF OVER TWO AND A HALF TRILLION DOLLARS IN THAT TRUST FUND IN IOUs. (ALL OF THAT SURPLUS MONEY CAME FROM THE PAYROLL TAX NOT INCOME TAXES). AT THIS TIME, THE PAYROLL TAX STILL FUNDS ALL OF SOCIAL SECURITY AND MEDICARE BENEFITS. THE CUTTING OF TWO PERCENTAGE POINTS OFF THE PAYROLL TAX, EACH EMPLOYEE, FOR ONE YEAR WILL FORCE THE TREASURY TO BORROW MONEY TO BUY BACK SOME OF THOSE IOUs IN ORDER TO PAY FULL SOCIAL SECURITY AND MEDICARE BENEFITS. THE MONEY IN THOSE IOUs HAS ALREADY BEEN SPENT AND NOT COUNTED AS PART OF OUR NATIONAL DEBT. THAT BUY BACK, BY NECESSITY, WILL CONTINUE INTO THE FUTURE UNTIL ALL IOUs HAVE BEEN REDEEMED. IF THERE HASN'T BEEN SOME KIND OF SOCIAL SECURITY AND MEDICARE REFORM BY THEN THERE WILL, AGAIN BY NECESSITY, EITHER BE A DRASTIC CUT IN BENEFITS OR THE BENEFITS WILL BE PAID PARTIALLY OUT OF THE TREASURY (INCOME TAX MONEY). NOTHING SHORT OF CUTTING SOCIAL SECURITY AND MEDICARE BENEFITS (TRY THAT OUT FOR SIZE) WILL CHANGE ANYTHING ABOUT THE BUDGET DEFICIT OR THE NATIONAL DEBT. TO ARGUE OTHERWISE WOULD BE, AT THE BEST, FUZZY MATH AND AT THE WORST (JUST SHORT OF LYING) SMOKE AND MIRRORS.
IF WASHINGTON CAN BLAME ALL OR MOST OF THE DEFICITS ON SOCIAL SECURITY AND MEDICARE THEN THEY CAN CONFUSE THE ISSUES ENOUGH TO GET REFORM PASSED. THAT MAY BE GOOD STRATAGY BUT IT IS STILL DISHONEST AND AN ATTEMPT TO HIDE THEIR OWN INEPTNESS. IS THAT THE KIND OF GOVERNMENT WE WANT? REMEMBER THE FIVE HUNDRED BILLION DOLLARS THAT IS TO BE CUT OUT OF MEDICARE (WASTE AND FRAUD AND PAYMENTS TO DOCTORS AND HOSPITALS) THEN USING THAT MONEY TO HELP FUND OBAMACARE? THAT MONEY, IF IT EVER EXISTED, COULD BE USED TO KEEP MEDICARE SOLVENT A WHILE LONGER.

Maybe that will be simple enough for even Washington to understand. Last night I checked some of the fruit trees and they seemed to have weathered the cold snap okay. If it just don't get any worse we may have some fruit this year. Thanks for your time and input. Stay tuned. - William