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
Blank page
CONTEMPLATIONS

webphotoallen.jpg

"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.

______________________________________________________________________________________________________________________________________________________________________________ 

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.

_____________________________________________________________________ 

 

100_1391-photo_of_minivan.jpg

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. 
________________________________________________________________________________________________________________________________ 

Allen's Blog 

"THE LOOTING OF SOCIAL SECURITY"

Email Address: ironwoodas@aol.com

December 11, 2013

Why Doesn't the Media Report the Social Security Fraud?

 

For the past thirteen years I have been trying to alert the public to the great Social Security theft.  Over a 30-year period, the government embezzled $2.7 trillion from the Social Security trust fund and spent the money for wars, tax cuts for the rich, and other government programs.  As a result, the money is gone.  The trust fund does not hold any real assets.  The government IOUs in the trust fund are not marketable bonds.  They cannot be used to pay benefits, and they cannot be converted into cash. 

 

When I first discovered the Social Security scam, in early 2000, I thought that once I got the story out to the news media, it would soon become breaking news.  I was shocked and outraged that the government was embezzling Social Security revenue and spending it for non-Social Security purposes, and I thought everyone else would be outraged. 

 

What I soon came to realize is that freedom of speech and freedom of the press in this country are a lot less free today than I thought they were.  Today’s media is very different from the media of the 1970s, which helped to bring Nixon down during the Watergate scandal.  The CBS firing of Dan Rather, for reporting a story that the White House did not want reported, marked a sharp turning point in the history of American journalism.   

 

Many journalists have become “job-scared,” and they do not want to do anything that might threaten their job security.  The rule that most journalists seem to follow is “Don’t report anything that the government might not want reported.”  The government has managed to keep the Social Security scam from becoming public knowledge for three decades, and they are determined to prevent the people from ever finding out. 

 

The sad fact is that the mainstream media report the news that the government wants the public to know about, and very little else.  The public has both a right and a need to know about the embezzlement of $2.7 trillion from the Social Security fund. If this truth ever comes out, the American people will become so angry that the government may be forced to replace the stolen money. 

 

Most Americans rely on the government to keep them well informed about the current status of Social Security, and the government continues to deliberately mislead the public.  We have reached a point where the cost of paying full Social Security benefits is greater than the total Social Security tax revenue.  Thus the government has to borrow money to make up for the shortfall. The gap between Social Security tax revenue and the cost of paying full benefits, will become larger and larger as more and more baby boomers retire. 

 

It’s not that what I have been saying and writing about for the past thirteen years originated with me.  People in authoritative positions have been saying the same thing for nearly a quarter century.  Consider the following statements all of which represented an attempt to expose the Social Security fraud years before I even knew about it.

 

   

 

"Of course, the most reprehensible fraud in this great jambalaya of frauds is the systematic and total ransacking of the Social Security trust fund in order to mask the true size of the deficit 

The public fully supported enactment of hefty new Social Security taxes in 1983 to ensure the retirement program’s long-term solvency and credibility.  The promise was that today’s huge surpluses would be set safely aside in a trust fund to provide for baby-boomer retirees in the next century. 

 

Well, look again.  The Treasury is siphoning off every dollar of the Social Security surplus to meet current operating expenses of the Government. 

 

The hard fact is that, in the next century, the Social Security system will find itself paying out vastly more in benefits than it is taking in through payroll taxes.  And the American people will wake up to the reality that those IOU’s in the trust fund vault are a 21st century version of Confederate banknotesSenator Ernest Hollings (D—SC), Senate speech October 13, 1989.

 

 The discussion is are we as a country violating a trust by spending social Security trust fund moneys for some purpose other than for which they were intended.  The obvious answer is yes…During the period of growth we have had during the past 10 years, the growth has been from two sources.  One, a large credit card with no limits on it, and, two, we have been stealing money from the Social Security recipients of this country…Senator Harry Reid (D-NV) Speech on Senate Floor, October 9, 1990

 

There are no stocks or bonds or real estate in the trust fund.  It has nothing of real value to draw down.—David Walker, Comptroller General of the GAO, January 21,2005.

 

Congresses under both Republican and Democrat control, both Republican and Democrat presidents, have stolen money from Social Security and spent it.  The money’s gone. It’s been used for another purpose.—Senator Tom Coburn (OK) Senate speech. March 16, 2011

 

 It’s not like there’s money in Social Security or Medicare.  The government, over the last 30 years, has spent.it all.”—John Boehner, Speaker of the House, on ABC’s This Week, October 6, 2013. 

 

Through slips of the tongue, such as the above examples, the truth about the empty Social Security trust fund has been stated many times over the past quarter century.  But the news media always fails to pick the ball up and run with it.  Each of these statements should have been breaking news stories at the time.  Certainly John Boehner’s October 2013 statement that “There is no money in Social Security” because, “The Government has spent it all.” should have been reported widely by the media.  As Republican Speaker of the House, who is advocating cuts in Social Security benefits because the government has spent all the Social Security money, his open admission on national TV that the government has spent all the Social Security money should have been reported by every media outlet that covers national news. 

 

When, Senator Tom Coburn publicly confessed that he and his fellow members of Congress had “stolen money from Social Security” and said “The money’s gone,” I was excited.  At first, I thought my long struggle to expose the Social Security theft might be over.  Surely, reporters would not allow this powerful admission to go unreported.  This was shocking news that every American needed to hear.  And it was a story with potential legs.  It was so shocking that every news reporter in the country should have wanted a piece of the action.  Once this news story was widely reported by the media, it would have unleashed the fury of the 76 million baby boomers, whose money had been stolen.  At least, that is what I thought would happen.  But it didn’t happen.  Why?

 

A United States Senator had publicly confessed to a major crime against the American people, and he had implicated other members of Congress in the crime.  By any measure of what is, and is not, newsworthy, this story should have been highly publicized throughout America.  Every American, who follows the news closely, should have had the opportunity to know about it.  But it appears that something like Adam Smith’s giant invisible hand must have intervened to muzzle the entire news media of this country.  Only a tiny portion of the American public had any opportunity to read and digest what could have been the beginning of a huge national scandal.

 

 Senator Coburn was “speaking out of school.” He got carried away during that Senate speech and let the cat out of the bag.  We can be almost sure that Coburn was severely chastised by his colleagues, and party leaders, for bringing up an issue that the public was not supposed to know about. Coburn clammed up about Social Security, after putting his foot in his mouth in that particular speech. 

 

Where were the investigative journalists who should have investigated to see if what Coburn had said was really true?  If the government had stolen Social Security money, there must be evidence that could be used to prove it.  But apparently no newsman wanted to find out.  The news-reporting system developed a mass paralysis, and failed the American public, at a time when there was an opportunity to expose 30 years of government malfeasance and inappropriate secrecy. 

 

 

11:25 pm est 

2013.12.01 | 2011.08.01 | 2011.04.01 | 2010.10.01 | 2010.08.01 | 2010.06.01 | 2010.03.01 | 2010.02.01 | 2010.01.01 | 2009.12.01 | 2009.11.01 | 2009.10.01 | 2009.08.01

Link to web log's RSS file

______________________