Categorized | Current Affairs

Obama’s Nominee for Secretary of the Treasury: "There is no need to deal with Social Security."

Astonishingly, this is what the guy Obama nominated today to succeed Turbo Tax Tim at Treasury actually believes. At least that’s what he said in 2011:

There’s no reason to believe he feels any differently now since his boss continues to insist that "we don’t have a spending problem" and, with Social Security and other entitlements the primary drivers of our exploding debt, it’s only logical to assume Obama would nominate a fellow flat-earther on government spending. The fact is, Social Security went into deficit in 2010 and it, along with Medicare, will drive the nation into bankruptcy if they aren’t materially reformed. The longer we put off the inevitable, the more painful the day of reckoning will ultimately be. But Lew insists we can sit around and do nothing until 2037. Stephen Gutowski at CNS exposes Lew’s nonsense by doing one of the best jobs of explaining Social Security’s banana republic finances I’ve yet seen:

The truth is that Social Security has been adding to the deficit ever since it started paying out more than payroll taxes bring in. It does it in a more indirectly than it will when the trust fund finally does run out but that’s just a matter of semantics. As the trust fund operates, which is all explained on the Social Security’s website, the money that is brought in from payroll taxes is immediately used to buy "special issue" securities from the Treasury.

Those are sweetheart bond deals since they can never be redeemed for less than face value. It doesn’t matter when they’re redeemed or why. Additionally, nobody but the Social Security trust fund can buy them. Then, the taxes used to buy those securities are sent into the general fund and immediately spent on whatever it is that Congress feels like spending it on.

When it comes time for the fund to pay retirees, it cashes in the securities and is paid back with treasury cash. The treasury cash used to buy back the securities comes from – you guessed it – the general fund.  It’s just one big dumb accounting trick.

The result of all this is that we end up adding to the deficit anytime Social Security taxes don’t at least equal the Social Security payouts.

So, despite Jacob Lew’s pronouncements, Social Security is now, and will continue to be, adding to the deficit. There’s no way around that fact.

First Obama nominates a guy to Treasury who cheats on his taxes, now he follows that up with a guy who’s living in the land of rainbows and unicorns. Lew’s pronouncements on Social Security’s finances are, without a doubt, a textbook Chip Diller moment:

Tags: , , , , ,

Comment Policy: The Editors reserve the right to delete any comments which in their sole discretion are deemed false or misleading, profane, pornographic, defamatory, harassment, name calling, libelous, threatening, or otherwise inappropriate. Additionally, the Editors reserve the right to ban any registered poster who, in their sole discretion, violates the terms of use. Do not post any information about yourself reasonably construed as private or confidential. Conservatives4Palin and its contributors are not liable if users allow others to contact them offsite.

  • nkthgreek

    Being 71, I now consider it social insecurity.

  • $7566967

    Here we have yet another rigid, socialist ideologue being placed in a position of power, and national Republicans, like that idiot Mitch McConnell, has the nerve to be both disappointed and surprised. Here’s a friendly little suggestion for that rube.


  • RedDaveR

    I didn’t think anybody could be worse than Mr. Turbo Tax, but this guy might prove me wrong.

  • lanahi

    Maybe Social Security would be solvent if they quit borrowing from it.  Those IOUs are killing it.  Even the interest on the money that it should have would help it a lot. 

    Also not allowing illegals to collect Social Security payments would help.  If you didn’t pay into it, you can’t collect when it’s time.

  • 1776er

    Well, here’s the thing.  

    Jack Lew is right about Social Security—from a political perspective.  Not from an economic perspective but from a political perspective.

    Immediately, in the short and middle term, as Lew points out the system is going to pay its bills.  While its paying its bills there is no POLITICAL imperative to "fix it".  Quite the contrary as opinion polls and the successful polarization of the issue in political campaigns has demonstrated. From a purely political point of view SS is a purely emotional issue. In the short and immediate term SS is what could be  called a heart issue.  It’s emotional.  It’s a "fairness" issue.  It’s a security issue.  Don’t mess with grandma’s SS.  Third rail.  Zap.  Political death.  

    From a long term economic point of view SS is the mess we all know it to be.  It is unsustainable.  It is irrational.  It is a government sponsored ponzi scheme.  FDR knew it was a ponzi scheme in 1935 when he and a Democrat controlled Congress shoved it down America’s throat like Obamacare.  In the long term SS is going to collapse.  In the long term SS is what could be called a head issue. That which cannot be sustained will not be sustained.  In one of Obama’s favorite expressions "the math doesn’t work."  

    The American electorate never thinks about the long term.  The long term is somebody else’s problem.  Americans think with their hearts not their heads.  

    Marxists and Democrats have always understood this distinction.  They have used it to good political advantage since FDR’s day.  They won’t deal with SS in a serious, rational way until they have to at the collapse.  Which they will blame on Republicans.  Until then SS is a bat they use to beat Republicans with as cruel, inhumane, HEARTLESS cheap bastards who want to screw "the greatest generation" and all those voting Boomers out of their just desserts after a lifetime of building this country.    

    Bottom line here Conservatives is this:  you can’t fight this attitude in America.  You can’t approach SS from a rational, "head" perspective.  That is a political loser.  Demonstrated.

    So what is a good Conservative with both a head and a heart to do?  

    Conservatism in America is on life support.  It cannot afford to take many more emotional heart based beatings and expect to prevail at the polls in the short term and intermediate future.  If it does it may not have a long term future.  It is a matter of political survival at this point.  

    Conservatives and Republicans need to take Jack Lew’s advice and take a break from pointing out the rational obvious problem to the American public and presenting Paul Ryanesque "serious entitlement reform" proposals.

    The American public doesn’t want to address "serious entitlement reform proposals".  Some day they will have to stick their noses right in it.  Jack Lew’s short and intermediate term is not that time.

    What’s a Conservative with a heart and a head to do?  Don’t take the political beating in the short and intermediate term.  Take a pass.  Bide your time until you have the leverage to actually do something about the long term problem.  Run silent.  Run deep.  But run from this losing side of the dialogue.  Survive politically until you have the muscle and the leverage to ACT.  

    Sarah Palin advises us as this New Year dawns:  "Choose your battles wisely."  Serious Entitlement Reform is not a battle that Conservatives can win in the short and intermediate term.  So don’ t fight it if you want to survive politically.

    Boehner and company are making a serious POLITICAL mistake threatening to tie the Debt Ceiling debate to "Serious Entitlement Reform" which translates to cutting grandma.  Give it a pass Republicans.  Give it a pass TEA Party.  Give it a pass Palinistas.  For the present Entitlement Reform is a heart battle.  For political survival’s sake–give it a pass.

    What’s Boehner’s best POLITICAL course?  Don’t fight the Debt Ceiling battle at all.  Give that a pass, too.  Take the Debt Ceiling crisis out of Obama’s hands.  He loves crisis politics.  Refuse to play the last minute, high drama, heart stopping political crisis game with Obama.  

    The ground to fight Obama and Marxism on–where Boehner and the TEA Party both have leverage–is  on wasteful government spending.  It is practically the only place they have the leverage and the popular support to prevail over Obama.  

    That would be line item trench warfare over the Agency budgets.  13 Appropriation Bills.  Discretionary spending.  Small victories.  One $10 million boondoggle at a time.  Americans may not think with their heads but they hate to waste money.  

    Fraud, waste and abuse have always been the subject of  hypocritical political rhetoric by both sides of the aisle.  But neither side of the aisle has  taken it seriously preferring to profit from it while sermonizing against it.  CC and PPC. 

     If Boehner wants to survive and win a few battles his Republican Caucus is going to have to see corruption in the Appropriation process as the weak  and exposed underbelly of Marxist corruption.
    The Republicans are going to have to get righteously clean on corruption.  Clean as Caesar’s wife. 

    The Republicans in the House should go after Obama’s Discretionary budget proposals like the doughboys charging the German lines with bayonets in WWI.  Trench warfare.  Stick em with cold steel.  Gut em.  In close and personal.  They might try using the Rebel Yell while they are charging the Marxist corrupt CC and PPC lines while they are at it.  Americans love a good show.  

    And when they rout the Marxists out of their big spending trenches in the 13 Appropriation Bills they mark up and pass they should steel themselves to resist the counter attack that Harry Reid and the Senate will mount against them.

    F*** You, Harry Reid!  F*** You, Obama!  should be the Republicans battle cry.  

    Just cut spending.  Just cut it.  Take a pass on all the short and intermediate term heart issues that are battles you can’t win.  The Debt Ceiling.  Entitlement Reform.  Tax reform.  Heart issues.  Take a pass.  For now.  Choose your battles wisely.  

    The problem as we all know is that focusing on trench warfare in the Discretionary Budget doesn’t fix the budget deficit.  It doesn’t fix the debt problem  It doesn’t slow down the unraveling of national bankruptcy.  It doesn’t address the fundamental economic "head" problem the nation is confronting.  There isn’t enough waste, fraud and abuse there to fix that problem.  You could cut the whole Discretionary budget to zero and not "fix" the rational economic problem.

    All that is there is a series of small victories.  Small victories is the best an undergunned and outmanned force in the House can expect to achieve.  It is the wisely chosen battleground for the short and intermediate future.  It is the best that can be accomplished.  Just win baby.  Just win something.  Not fully satisfying but necessary under the political circumstances in America today.

    Jack Lew makes braying, sermonizing noises about the broad middle ground where we can find political consensus to deal with SS and other entitlements.  That is an astonishingly hypocritical statement from a Marxist.  There is no such ground.  They wouldn’t, and haven’t, gone there even if there was.  Wouldn’t work for them politically in the short and intermediate term.  They know how to polarize the heart issues.  Those are battles they can and have won.  They won’t change up a winning formula.  That formula is to divide the country along "heart" lines.  Race/Class/Gender/Religion.  

    Just win, baby.  Cold steel.  Just cut spending one line item at a time. Gut em in Committee. Hold the Line!  Hold! Hold! Hold!   F*** You, Harry Reid!  F*** You, Barackus Hussein Obamus II!

  • angeleno

    Obama is not a President. He’s a lying, cheating carnival hustler, plus a lot worse. That’s why he doesn’t give a damn about the average American’s pocketbook, and surrounds himself with phonies like him.

  • nkthgreek

    No need to deal with Social Security? Soon there will be no Social Security to deal with.

  • BrianusBerkleianus


Open Thread

Governor Palin’s Tweets