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EXPECT FRIGHTENING BLACK SWAN

Today a former US Treasury Official warned King World News that investors around the world need to be prepared for a frightening "black swan" that will shock the financial world. He also cautioned, "the whole (global financial) situation is headed to hell in a hand basket." Below is what Dr. Paul Craig Roberts had to say in part I of his powerful interview series.
Former US Treasury Official - Expect Frightening Black Swan

October 25, 2013


Today a former US Treasury Official warned King World News that investors around the world need to be prepared for a frightening "black swan" that will shock the financial world. He also cautioned, "the whole (global financial) situation is headed to hell in a hand basket." Below is what Dr. Paul Craig Roberts had to say in part I of his powerful interview series.

Dr. Roberts: "A lot of people think of 'entitlements' as welfare, but (these) 'entitlements,' strictly speaking, are welfare and medicare, and both are funded by the payroll tax. They are not unfunded, and they are not welfare. The current payroll tax is 15% of welfare and that goes to fund these programs. These programs are not the problem. For the last 30 years, the federal government has been collecting far more social security revenues than they have paid out in social security benefits the difference is about $2 trillion.


So, what happened to this $2 trillion? Is it safely in the bank for social security? No. The Treasury took it and spent it, and stuck in its place non-marketable I.O.U's. So, what's in the Social Security Trust Fund is $2 trillion of non-marketable Treasury I.O.U.'s... .


"The only way they can be made good would be either for the tax revenues to go up by $2 trillion, which is not conceivable, or the Treasury has to sell $2 trillion more bonds and use the proceeds to put the money into the Social Security Trust Fund.


Now, supposedly, when they concocted this scheme the money would be accumulated to cover far-distant years, when it was projected that the payroll tax, at the current rate, would not suffice to pay all of the social security benefits. The real purpose of the scheme, which was cooked up by Alan Greenspan and David Stockman, was to reduce the current budget deficit in order to reassure Wall Street about their bond and stock portfolios.

EVERYONE ACTS LIKE WE HAVE ALL OF THESE "FREELOADERS"LIVING OFF OF THE PUBLIC. WELL, IN FACT, MANY ASPECTS (OF THE UNITED STATES GOVERNMENT), INCLUDING THE FEDERAL GOVERNMENT'S WARS, HAVE BEEN LIVING OFF OF THESE SURPLUS SOCIAL SECURITY REVENUES.

more at  link to kingworldnews.com

The Treasury took it and spent it 01.Nov.2013 12:36

hb

no, not quite.

Congress took it and spent it. Actually Congress took it and bought votes with it. Your votes. So basically you spent it. You put burglars in charge of the bank where your money is (or was).

The baby boomer generation is the worst generation. It has never sacrificed, and only taken. Now its coming to a head and unfortunately they have fucked over their children, grandchildren and great grandchildren, but they don't care BECAUSE ITS MINE! GIVE IT TO ME!.

Pot, Meet Kettle 01.Nov.2013 15:42

Garth

Amusing seeing hb accuse others of being selfish.

Kettle smokes pot. 01.Nov.2013 18:15

hb

Totally predicable having Garth be generous with someone else's money.

Forcing others to give away their money is the most gutless thing you could do, but you have a lot company.

@hb 01.Nov.2013 20:56

dude

It(SS)is mine so do not worry, I'll keep it.

The rich think the damn liberals won't fight for
what is theirs.

Time will tell.

Now medicare is another story. It needs funding and that
will be pain full. Perhaps making high paying jobs could
help fund it.

Or just a tariff on finished goods imported
or raw materials exported. As both take jobs afar.

the WTO won't allow tariffs. 03.Nov.2013 03:38

hb

so you need to find another revenue stream or do without.