Archive for the ‘Congress’ Category

On Richard Nixon

OnRichardNixon   <– PDF version

It was 40 years ago this week (9 Aug 1974) that Republican President Richard M. “I am not a crook” Nixon resigned his office because he was discovered to be a crook.  He had willingly and knowingly covered up a burglary of the Democratic Party offices at the Watergate office building in Washington, committed by his supporters, some of whom worked in his campaign or his administration.  Nixon had waged a long internal battle to save himself from disgrace, but in the end the facts came out about his knowledge of the burglary and his abuse of power in covering it up.  We will probably never know if the burglary itself was his idea.  Many people in his own Republican party, understanding enough about history to know that honest government is always preferable to raw power, assisted in Nixon’s decline.  Nixon himself knew by then that he was about to be impeached, and would probably be removed from office, so he resigned in order to prevent a drawn-out political turmoil to the exclusion of other important issues (the Vietnam War being one of them).

So Nixon said good-bye and retired with full benefits to his mansion in San Clemente.  He was subsequently given a full pardon by his successor, President Gerald R. Ford, ostensibly to avoid seeing his old buddy have to stand trial for abuse of power and other crimes.  It was the worst mistake Ford ever made because it set the precedent by which future Presidents knew they could get away with anything.

Nixon was a crook.  He knew he was a crook, everyone else knew he was a crook, there was no means left by which he could talk his way out of it, and few in Congress or the courts were willing to tolerate any more of his corruption.  But let’s give old Tricky Dick some credit here: at least he retained some semblance of integrity such that deep down, he recognized that the American people deserved better than him.  Therefore, he did what was right by resigning.

We do not have that sentiment in politics any more.  The respective political parties have become so ideologically motivated towards the acquisition of power by any means that they will defend their crooks no matter what.  There is no limit to the crimes and abuses of power that will be tolerated so long as they expand their powers and associated privileges.  We have suffered with recent Democratic President William J. Clinton who even now cracks a smile whenever he is reminded of the massacre at Waco, the IRS targeting of his enemies, and the undermining of American elections with Chinese money (not to mention his personal victims).  Our current Democratic President, Barack H. Obama, regarded as the messiah by some of his supporters, has violated his oath of limited powers per the Constitution too many times to count, has once more encouraged and tolerated IRS abuse of his political enemies, and has implemented socialism at home and weakness abroad.

Unlike Nixon, who believed the American people deserved better, these two moral midgets believe the American people are not good enough for them.  I suspect the Republicans are no better.  So it will continue until “we the people” start demanding better, and start ignoring the slick political advertising extolling the alleged virtues of those who love power for its own sake.  In that spirit, I have three recommendations for elections:

1.  Regard every word by every candidate as being submitted to you, the citizen, as under penalty of perjury.

2.  Never vote for anyone who has committed perjury per #1.

3.  Only vote for those who have demonstrated a willingness to limit themselves to the enumerated powers granted to their offices under the appropriate local charters or state and federal constitutions.

 

 

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The Financial Status of Social Security, part 4

FinancialStatusOfSocialSecurity_Part4   <– PDF version

Dear readers:

This post, the fourth in a  series on Social Security, is available only in PDF form owing to the graphics.

Thanks for reading,

EDD

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FinancialStatusOfSocialSecurity_Part2   <– PDF version

Some analysts and economists have claimed that the Social Security system is nothing more than a Ponzi scheme.  I believe I can show that there are enough differences between the two to demonstrate that this claim is incorrect.

Let’s begin by reviewing what Ponzi scheme is.  It was named for Carlo Ponzi, a Boston businessman who talked people into investing in a plan to earn a profit through arbitrage of international reply coupons (IRC).  An IRC is an international agreement by which nations agree to deliver mail from other nations within their postal system.  Ponzi’s plan was to take advantage of the difference in postal rates among the various nations participating in the IRC treaty.  His plan fell through with great losses because the overhead on each transaction was too high.  Ponzi’s plan started as a legitimate enterprise, but he turned it into a fraud when he started realizing losses.  He then diverted money provided by new investors by using it to pay off the original investors, while also taking a cut for himself.  In honor of Mr. Ponzi, any investment plan in which early investors are paid off with funds provided by new investors instead of profits is now called a Ponzi scheme.  Instead of earning money by wise investing, the fund managers camouflage their losses by sending out false financial statements.  When necessary, they make payments to the original investors by robbing the newer investors.  This continues until the management runs out of new investors, or the operators steal everything they can.  Normally, Ponzi schemes attract investors by claiming to have invented some secret stock market advantage, or by claiming to have discovered some hidden trading tactic that is always profitable. With that background in mind, here are five reasons why Social Security is not a Ponzi scheme.

1.  “Investing” in a Ponzi scheme is voluntary, “investing” in Social Security is not.  If you are working, whether for wages or in business for yourself, you are inducted into the system except for some very narrow exceptions (usually involving employment by a religious institution).

2.  A Ponzi scheme, although fraudulent, is ultimately subject to Securities regulation, thus incurring a legal obligation to conduct the business honestly (although they have no intention of doing so). Social Security is not subject to any regulation; the Social Security Administration is under no legal obligation to pay benefits: it operates solely on the whim of Congress.

3.  Because a Ponzi scheme is set up to be nominally subject to regulation, an investor can demand to get his money back at any time.  However, no one can get their Social Security “investment” back until they meet age or disability requirements set by Congress.

4.  A Ponzi scheme is based on attracting a small number of wealthy people to invest in it; thus it robs the rich when it fails.  Social Security is based on forcing a large number of poor and middle class people to participate; thus it will rob the poor and middle class when it fails.

5.  Ponzi scheme managers send out false financial statements to give the illusion that it is solvent in the short run.  The Social Security Administration publishes honest financial statements that prove that it is insolvent in the long run.

 

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The Financial Status of Social Security, Part 1

FinancialStatusOfSocialSecurity_Part1  <– PDF version

Dear readers:

This is the first in a series about the true financial status of the Social Security Trust Fund.   There are several useful charts showing the historical state of the Trust Fund since 1937; for that reason it is available only in PDF format.

Thanks for reading,

EDD

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