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OpEdNews Op Eds    H2'ed 6/18/19

Solving The Social Security Riddle

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Social Security isn't enough. What to do?
Social Security isn't enough. What to do?
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In his recent article, " A Wall Street Boost For Social Security", Gerald Scorse (OpEdNews 6/16) points out the advantages of investing some of the $2.8 trillions of Social Security funds in the stock market instead of in low paying government securities. Warren Buffet backs up this notion, as did the Bush/Cheney administration and other republican administrations before. Without alterations to the program, such as raising Social Security taxes, taxable limits on earnings and age qualifications, or lowering benefits, the current program is projected to run out of funds by 2034.


According to Scorse's sources, the S&P stock market index shows an annualized gain of 15% since 2009. The SS fund would have benefitted if it had been invested in the market instead of government securities during this period. But what would have happened to the value of the Social Security fund if it had been invested in the stock market before the 2008 recession when the market dropped 33%? There are better ways to safeguard and enhance the Social Security fund without entrusting it to greedy Wall Street manipulators. but they would require fundamental changes in the structure of government financing.

I would refer you to such writings as "The Web of Debt" by Ellen Brown for a competent analysis of the flaws and foibles in our present systems of government financing. Mainly, they point out how, under the existing order, the private banking system through its role in the Federal Reserve - as well as by imbedded influences - profits from government financial operations, including the creation of money issued by the Federal Reserve, as a form of government debt to private banks.

As there is, nominally, a separation of state and church, there could also be a separation of state and private banking whereby the government creates its own currency without incurring debt. The creation of a national bank, as Ellen Brown keenly advocates, could supplant the private banking industry in profiting from government operations. Using the $2.8T SS funds as an endowment, together with the backing of the federal treasury, the bank could enter into government sponsored banking operations. In addition to conservatively managing the investment of some Social Security funds in basic industries, it could finance FHA loans, student loans, and other government programs at minimally low interest rates.

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The creation of a national bank in competition with the private banking industry would be one step towards shifting wealth from Wall Street to the government where it could benefit the general population. Letting Wall Street get its hands on Social Security funds would put Social Security in the same predicament as our expensive and problematic private health insurance system. The government and the general public are not merely a herd of cows to be milked of their wealth by opportunistic connivers.

 

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Harold Novikoff Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Veteran, retired from several occupations (school teacher, technical writer, energy conservation business, etc.) long-time Sierra Club member


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5 people are discussing this page, with 6 comments


Derryl Hermanutz

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I agree, Harold. Government issuance of its own debt-free money is the only real solution to all the financial problems that are caused by the commercial banks' debt-based money supply issuing monopoly.

Submitted on Tuesday, Jun 18, 2019 at 7:51:08 PM

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Devil's Advocate

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Yup. We know this. They know it, too.

It'll just never happen, of course.

Submitted on Tuesday, Jun 18, 2019 at 9:48:52 PM

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Paul Krumm

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At this point in history, giving Social Security over to the banks would only give them another source to raid in a 'bail in' when (not if) they fail again. Beware of the bail in.

For those who are not acquainted with bail in, it is described in Brown's newest book 'Banking on the People', starting on page 96. The bankers can now legally take your and my funds, as well as potentially those of Social Security if it is privatized, to bail themselves out, converting their liabilities (our assets deposited with them) into their equity.

Submitted on Wednesday, Jun 19, 2019 at 12:56:49 AM

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Nick Egnatz

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The solution is simple and intuitive. Our government should create all US Money. Under the present system virtually all of what we use for money is created as debt by banks when they make loans. It exists only as debt, and as such we must be perpetually in debt to keep the system afloat. Creating state banks or a national bank only continues the debt money system. The NEED Act put into Congress in 2011 by Dennis Kucinich put all money creation back with our government as called for by the Constitution. It would nationalize money creation and not banking. Going forward banks would loan only money that already exists. The Federal Reserve would be shrunk and put into a newly created, somewhat independent Monetary Authority, within the Treasury Dept. These reforms have been vetted by top economists at the International Monetary Fund to: "(1) Much better control of a major source of business cycle fluctuations...(2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt..."

Submitted on Wednesday, Jun 19, 2019 at 5:37:32 PM

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Nick Egnatz

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Under the NEED Act :

Federal debt would be repaid as it comes due.

National healthcare could be funded.

Social security deficits would be funded.

Massive infrastructure spending as recommended by American Society of Civil Engineers would be funded.

Education would be funded and student loan debt could be forgiven.

A transition to clean sustainable energy could be funded.

All done without additional debt or taxes.


Submitted on Wednesday, Jun 19, 2019 at 5:45:10 PM

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Michael Dewey

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Remove the whole cap, (Only way to ever get back what was stole.) and back US Notes from the Treasury loaned to Public Banks at the Post Office to loan to Community Banks as North North Dakota has done with it's State Bank since 1919. I would surely hope worker owned companies would be created and investing in, even if it means buying partial ownership of Corporations now. Of course modeled after the $20 billion a year Mondragon Cooperative of the Basque in Spain, which owns it's own Collage. How that Basque model could help communities with education should really be in today's political debates. I dream cities and towns buying cable, internet and even cell phones set up as Public Utility-Post Office kind of set up paying to run things locally.

Submitted on Wednesday, Jun 19, 2019 at 10:15:24 PM

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