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Dean Baker: Banksters WANT the Crisis

DCblogger's picture
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Submitted by lambert on

... created, as you point out, by them.... The Wall Street people got us here, and now they're taking advantage of the crisis they themselves created to try to undermine Social Security, Medicare, Medicaid, other bedrock social programs. Basically, I see this as they don't want to pay for them."

How are they paying for them now?

They aren't paying for them now. Social Security has lent the US government two and a half trillion dollars; that will be paid back from Peter Peterson's pocket, he and other people like him. He does not want to pay back, he's said that absolutely explicitly.... He said this over at Congress just a few weeks ago, he said "There is no Social Security trust fund." So, for him, he wants to zero that out, Social Security, from worker's tax dollars, two and a half trillion was lent to the US government to be paid back from income taxes that are paid by people like Pete Peterson. Pete Peterson says "I'm a rich and powerful person. I don't have to pay back the two and a half trillion dollars. We're just going to take that from the workers and tell them "Sorry, guys, there's nothing there for you."

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Dean, it's called Shock Doctrine. And oddly, or not, Obama and the Democrats are wiring up the electrodes and turning the crank.

mass's picture
Submitted by mass on

just hear it straight out like this. Personally, I think this was a pay off from Obama to some of his biggest contributors. He sold the people out. These lame duck votes are anti-democratic. This is truely a disgrace.

By the way, I posted this at fdl and alegre's corner, hope you don't mind.

S Brennan's picture
Submitted by S Brennan on

Social Security is completely solvent, what's in question is the US Treasury notes it holds. Right wing groups, Obama included and the media keep touting the option that the US treasury should renege on their face value. This is in direct contravention of the US Constitution, the document couldn't be more clear on the matter.

When the government spends more than it receives in tax revenue, it borrows the rest by issuing US Treasury Securities, so when the Government spends more on something like tax cuts for the privileged, or war for the underclass's, it borrows from the SSI fund and hands SSI a treasury note guaranteed by the US Government.

Let's review the Fourteenth Amendment, Section. 4. "The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned."

So, not paying those US Treasury Securities notes requires a constitutional amendment, or destroy any pretense of law and violating the oath office of federal officers which is an impeachable offense.

In sum, the US Government must default on it's legal obligations and in the process destroy it's Constitution all in order to pay for useless wars for the poor and tax cuts for the rich.