Thursday, April 9, 2009

Oh, there's a social security crisis alright!

However, it's a crisis fueled by - you guessed it - the Pope of Hope and his henchmen:
Dean Baker in USA Today:

In effect, the cutters are proposing that the government default on the bonds held by the Social Security trust fund: U.S. government bonds that were purchased with money raised through the designated Social Security tax.

It is truly incredible, and unbelievably galling, that anyone in a position of responsibility would suggest defaulting on the government bonds held by the Social Security trust fund at the precise moment that the government is honoring trillions of dollars of bonds issued by private banks.

While the government has no legal or moral obligations to pay off the banks' debts to wealthy investors (who presumably understood the risks they were taking), the Social Security bonds carry the full faith and credit of the U.S. government.

Jonathan Schwarz at A Tiny Revolution:
In case you've missed it, the Federal Reserve has guaranteed gigantic amounts of bonds issued by banks (see "bank debt" here). Thus, as Baker says, the Social Security cutters don't just want us to default on U.S. government bonds essentially belonging to Social Security recipients. They want us to do that at the same time we're paying off Citigroup's bonds.
There's a Social Security crisis all right, and Barack and his friends are part of it.
I have tried to warn folks that Obama is highly wed to neoliberal orthodoxy. That was apparent from just a cursory perusal of his statements on the campaign trail, and his choice of economic advisors not only on the campaign trail but once installed in the White House. Basically, neoliberals work to exploit economic crisis (in no small part caused by neoliberals) in order to gut social support networks and transfer wealth to the filthy rich. It is crucial that we make note that the regime has never seriously entertained the idea of defaulting on, say, Citigroup's bonds. Those are apparently to "important." On the other hand, some pitance of financial support for those retired or disabled - payed for by the way with our tax dollars - is entirely expendable during the current depressed economic conditions. Just as the biggest threat to social security was the Bush regime, it appears that Obama is every bit a threat if not more so. Unlike Bush, Obama is slick enough to keep up the appearance of being "helpful."

No comments:

Post a Comment