I have been called a ‘denier’ by some on the left for refusing to buy into the theory that Global Warming is man made, and we alone have the power to stop it. I refuse to buy into this because there is not irrefutable evidence to that affect, and further more, the only solution to the ‘man made crisis’ scenario appears to be new taxes and new government programs. As someone who firmly believes expanding government will never be the end of a crisis, only the beginning of a new one, I will not concede to this.

As it turns out though, those on the left have their own instances of denial, one which is much more dangerous because it is based on ignorance rather than unconvincing evidence. Apparently there are some who believe the Social Security crisis does not exist, and is simply something which was manufactured by George Bush and other Republicans. Around the fourth paragraph the author demonstrates why I stated his denial was based on ‘ignorance’:

This gives rise to the first Bush lie; it will not be bankrupt. Instead, this possible deficit has been provided for. At that point, the trust fund kicks in, funded by constant investment in the surest investment around, U.S. Treasuries; not “worthless IOU’s.”

For starters, what is a Treasury Bond if not an IOU? When the United States Treasury prints a bond and sells it at auction, the buyer of that bond has purchased a debt, they did not purchase an asset. The debt, plus interest payments, are repaid to the buyer of that bond on maturity date. Only an intellectual midget would consider this an ‘investment’ on the part of the seller. This is the crisis George Bush was referring to with regards to our Social Security system.

Our government in their infinite wisdom, have been raiding the Social Security trust fund pulling out real cash and replacing it with Treasury Bonds. This has been going on for decades (with Bush and the Republican Congress just as guilty as the Democrats) for the simple fact that it gives Americans the illusion of a low spending deficit. Money currently being paid into social security which is not needed to cover this years payments are technically considered working capital, meaning Congress can allocate those funds without it increasing the deficit.

But don’t take my word for it, take a look at what the Social Security Board of Trustees said:

What are Social Security’s total cash deficits? Social Security’s net cash shortfall over the next 75 years totals $25.33 trillion in 2003 dollars, a $1.46 trillion increase from the 2002 report. That figure assumes today’s surpluses are saved; if surpluses are not saved, then from 2018 through 2077 Social Security faces gross cash deficits of $26.40 trillion (in $2003), an increase of $1.37 trillion from the 2002 report.

When do cash deficits begin? In the 2003 report, cash deficits began in 2018, a delay of one year from the 2002 report. Once payroll taxes are no longer enough to pay scheduled benefits, the government must produce extra cash ? either to redeem the bonds in its Trust Fund or to pay benefits directly. The multi-trillion dollar cost to the government of redeeming these bonds would require tax increases or reductions in non-Social Security programs.

When is the Trust Fund exhausted? In the 2003 report, the Trust Fund is projected to be exhausted in 2042, an increase of one year from the 2002 report. Trust Fund bonds can’t themselves pay for benefits, since the government must come up with cash to repay them. However, the Trust Fund exhaustion date is still important: when the fund’s bonds are exhausted then, by law, Social Security must cut benefits by 27 percent to the level payable through Social Security’s dedicated tax revenues.

These are facts, which to the best of my knowledge have not been disputed, at least not in a meaningful way. The author of the Daily Kos diary calls Social Security “FDR’s masterpiece of communal responsibility”, I call it the worlds biggest Ponzi scheme. This particular Ponzi scheme has been successful thus far, where others have failed only for one very important reason, the government mandates you buy into it. Eventually however, as is the case with any Ponzi scheme, the pyramid will become inverted and there will be more at the top collecting payments than there are at the bottom putting money in.

Anyone who tells you different is either trying to sell you his own Ponzi scheme, or is living in denial!

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Daily Kos, Liberals, Taxes