SECRETARY TIM GEITNER: WE MUST BORROW MORE TO PAY CURRENT BILLS

Tim Geithner admits Social Security is Bankrupt

http://godfatherpolitics.com/8989/tim-geithner-admits-social-security-is-bankrupt/

Godfather Politics – Mark Home – 1/16/2013

Nation-states . . . sold bonds (which is the same thing as borrowing money) so that people could “invest in” the nation.

All the money paid as a tax to Social Security is “saved” by this process. The money is used to buy government bonds which are then later to be cashed in when there is a need for the money.

But when you buy a bond from the government, your money is not used to create new capital. Typically, it is simply spent on immediate consumption. Nothing is built (at least nothing that anyone wants). Nothing is really invested. Instead, the one who is hoping to get the interest that the bond promises is merely betting that the government can increase taxes in the future and pay the bond owner from those revenues. No value is added.

When your money is “saved” from your payroll tax to “go into” Social Security, it is actually used to buy Treasuries. But that just means that your money that is “saved” in social security is actually loaned to the government and immediately spent. Nothing is saved at all. Whether or not Social Security can be paid depends entirely on whether or not current taxes can be raised high enough to cover them.

Timothy Geithner, in order to make Congress raise the debt ceiling, has admitted the truth. He wrote a letter to House speaker Boehner:

“The U.S. government makes approximately 80 million separate payments per month. These include payments for:

• Social Security
• Supplemental Security Income
• Medicare
• Medicaid
• National Security Needs
• Including military salaries, military retirement, veterans’ benefits, and defense contractors
• Income tax refunds
• Federal employee salaries and retirement
• Law enforcement and operation of the justice system
• Unemployment insurance
• Disaster relief
• Goods and services sold to the government under contracts with small and large businesses
• Many others

If Congress does not act to extend borrowing authority, all of these payments would be at risk. This would impose severe economic hardship on millions of individuals and businesses across the country.” (emphasis added).

Northwoods Patriots - Standing up for Faith, Family, Country - northwoodspatriotscomm@gmail.com