RAIDING THE TRUST FUND

Allen W. Smith, Ph.D.

RAIDING THE TRUST FUND
Read Chapter One Free RAIDING THE TRUST FUND
The Long Struggle
The Big Lie
Allen W. Smith, Ph.D.
The Looting of Social Security
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CONTEMPLATIONS

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"A Voice Crying in the Wilderness"

When Allen W. Smith appeared on CNN to discuss his newly published book, The Alleged Budget Surplus, Social Security and Voodoo Economics, on September 27, 2000, he thought that what he was about to say would soon become breaking news that would spread throughout the nation like wildfire.  Smith was so outraged by what he had discovered a few months earlier that he thought it would shock the public and generate a national scandal that would make Watergate pale by comparison.    Smith thought that, when the public found out that their Social Security contributions were being embezzled, and used to help finance Reagan's large tax cuts for the rich, they would share his outrage and demand action.  Smith thought that taking money from the payroll tax contributions of working Americans and transferring it to America's richest citizens was more than wrong.  It was immoral.  

Dr. Smith, a strong supporter of Social Security as we now know it, saw the raiding of the Social Security fund as a first step toward destroying the current Social Security system and replacing it with a privatized system.  The payroll tax hike of 1983 was designed to generate Social Security surpluses for 30 years prior to the retirement of the oldest baby boomers in about 2010.  These surpluses were to be saved and invested in marketable U.S. Treasury bonds, which could later be resold in the open market to raise cash with which to pay benefits to the boomers.  If the $2.7 trillion in Social Security surplus revenue, which the tax hike was designed to accumulate by 2010, were to be taken by someone like Bernie Madoff, the baby boomers would be  out of luck. The enemies of Social Security would then point to the dire financial condition of Social Security as proof that Social Security benefits had to be cut, and the system should be scrapped and replaced with a privatized system.  Most readers can readily see that if the $2.7 trillion in surplus Social Security revenue had been taken by Madoff, who is now serving a 150-year prison sentence, Social Security would now be in deep trouble.  Bernie Madoff did not steal the Social Security money. but the United States government did.  The money is gone and the only way to get it back is by raising taxes, which appears to be politically impossible in the near future.   

If the CNN interview, thirteen years ago, had gone differently, Smith thinks the public outrage would have been so strong that Congress and the president would have been forced to bring the raiding of Social Security to an abrupt end.  If that had happened, all the surplus revenue that came in after 2000 would today be safely held by the trust fund in the form of "good-as-gold" marketable U.S.Treasury Bonds, which could be sold in the open market as needed to pay benefits to the boomers. 

Smith was really excited as he entered that CNN studio.  He would soon be able to tell millions of viewers about the Social Security theft.  But the interview didn't go the way he had hoped.  Instead of showing interest in what Dr. Smith had to say, the CNN Anchor, Lou Waters from Atlanta, was amused, and he treated the interview as a big joke.  He ended the interview with these words:

"We're not hearing any of this in the news.  I'm involved in the news.  Are you a voice crying in the wilderness?" 

As thing turned out, Smith was a voice crying in the wilderness in September 2000,  and he has continued to be such a voice to this day.  In addition to Reagan, Presidents George H.W. Bush, Bill Clinton, and George W. Bush all looted and spent every dollar of the surplus that came in during ther presidencies. Obama might have done the same, but we can't know for sure because the surpluses were over and Social Security was running permanet annual deficits by the second year of Obama's presidency.

Dr. Smith is the author of nine books, and he has appeared on CNN, CNBC, and more than 200 radio talk shows.  He has a B.S. in Education degree from Ball State University and a Ph.D. degree in Economics from Indiana University.

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Links to articles: 

 

 

 

 Interview with investigative reporter, Mike Deeson, WTSP--CBS local affiliate in Tampa: http://www.wtsp.com/news/local/article/195201/8/Social-Security-Trust-Fund-stolen-by-the-Government

 

Archive of Allen's articles published by Dissident Voice.org: http://dissidentvoice.org/2013/05/government-owes-2-7-trillion-to-social-security/ 

Archive of Allen's articles published by FedSmith.com: http://www.fedsmith.com/author/allen-smith/

Allen's articles published in the Orlando Sentinel:   http://articles.orlandosentinel.com/2012-08-07/opinion/os-ed-social-security-con-080712-20120806_1_social-security-trust-fund-ious; http://articles.orlandosentinel.com/2013-06-10/news/os-ed-social-security-061013-20130609_1_social-security-income-subject-payroll-tax  

 

 

 

 

 

 


CONTACT ALLEN:  Phone: 1-863-875-2735     Email: ironwoodas@aol.com

Allen W. Smith is available for media interviews and speaking engagements.  Call 1-800-840-6812.

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Allen converted his Honda Odyssey into the "Social Security Info-van" several years ago with the hope that  it might be another tool with which to deliver his message directly to the public. 
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Allen's Blog 

"THE LOOTING OF SOCIAL SECURITY"

Email Address: ironwoodas@aol.com

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December 11, 2009

ORDER FREE COPIES of THE BIG LIE” 
 

I have made arrangements with Ironwood Publications to offer free copies (you pay only for shipping and handling) of my new book, “The Big Lie: How Our Government Hoodwinked the Public, Emptied the Social Security Trust Fund, and caused The Great Economic Collapse” during this Christmas season. 

 

The message of this book is so important, and so urgent, that I want to quickly get as many copies into circulation as possible. Therefore, from now until January 31, 2010, at my request, the publisher will send copies of the paperback edition (ISBN 9780977085170 List Price $16.95) to anyone who sends a check for $5.00 to cover the shipping and handling cost of the book, which will be shipped via Priority Mail.

 

Send requests, along with your check for $5.00 per book, to:

 

IRONWOOD PUBLICATIONS

74 OAKRIDGE DRIVE

FROSTPROOF, FL 33843

 

Those of you who regularly visit this website will know that I have spent the past decade trying to alert the public to the fact that every dollar of Social Security (FICA) tax revenue, that is not needed to pay Social Security benefits for the current month, is deposited into the general fund and used to pay for such things as previous tax cuts, current wars, and other government programs.  It is both wrong and illegal for the government to use the Social Security contributions paid by working Americans for non-Social Security purposes without either the permission, or even the knowledge, of those workers.  I believe that it is the greatest fraud ever perpetrated against the American people by their government, and it has been taking place ever since the surplus revenue generated by the 1983 payroll tax hike first began showing up in the U.S. Treasury.

 

I have appeared on CNN, CNBC, CNNfn and more than 170 talk radio shows in my effort to get the message out.  I have recently taken to the road in the “Social Security Info-van” to try to take the message directly to the public.  But it is hard to convince the public, that every dollar of the $2.5 trillion in surplus revenue generated by the 1983 tax hike has been spent by the government, leaving the trust fund empty.  The Social Security Administration, the AARP, and other senior organizations continue to mislead the public about the true status of the trust fund.  The news media reports these sources of information and refuses to even consider such an assertion as the following true statement.  “The government has ‘borrowed,’ or ‘stolen’ (whichever word you prefer) every dime of the surplus Social Security revenue, making it almost inevitable that, in just seven years, full Social Security benefits cannot be paid without a tax increase.”  It is not at all certain that the Congress or the public will support a tax increase for the explicit purpose of replacing revenue that the government has misspent, so Americans must be prepared for a possible cut in Social Security benefits beginning in 2017.


The truth about the trust fund is explicitly stated in the 2009 Social Security Trustees Report, although it is well-hidden.  A single sentence, at the end of the second paragraph, on page 18 of the Summary, spills the truth about the so-called “trust fund bonds.”  That sentence reads, “Neither the redemption of trust fund bonds, nor interest paid on those bonds, provides any new net income to the Treasury, which must finance redemptions and interest payments through some combination of increased taxation, reductions in other government spending, or additional borrowing from the public.”    


Please consider ordering one or more free copies of THE BIG LIE  and helping to alert the public to what is happening to their Social Security contributions.  The books are absolutely free during this limited-time-period offer.  All you pay is the shipping cost.  Just send a check for $5.00 for each copy of the book that you order to:

 

IRONWOOD PUBLICATIONS

74 OAKRIDGE DRIVE

FROSTPROOF, FL 33843

 

The offer is limited to a maximum of 5 copies per individual, but we will consider exceptions to this rule for organizations. 

 

Note: If you would like your copy of the book autographed, please indicate so. 

 

7:43 pm est 


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