June 5, 2012
Presidents in the modern era are known for their outlandish lies and Bill Clinton was one of the best at telling lies convincingly.
On June 4, during an effort to rake in cash for the Democrats in New York City, Clinton retold one of his most infamous lies – that his administration oversaw four budget surpluses.
“Remember me?” Clinton said from the podium. “I’m the only guy that gave you four surplus budgets out of the eight I sent.”
Clinton lied, something he is comfortable with (as are all sociopaths).
Clinton and his apologists and other Democrat lovers of the state claim Clinton realized a $360 billion reduction in the national debt in FY1998-FY2000. But, in fact, there was an increase of $281 billion in the debt.
Craig Steiner looked up the figures on the U.S. Treasury website. See the chart here. Clinton made his outrageous claim by using a semantic sleight of hand. “When it is claimed that Clinton paid down the national debt, that is patently false… the national debt went up every single year. What Clinton did do was pay down the public debt,” writes Steiner.
How did he do that? Clinton “paid down the public debt by borrowing far more money in the form of intragovernmental holdings (mostly Social Security).” Steiner explains how this works:
The Social Security Administration is legally required to take all its surpluses and buy U.S. Government securities, and the U.S. Government readily sells those securities – which automatically and immediately becomes intragovernmental holdings. The economy was doing well due to the dot-com bubble and people were earning a lot of money and paying a lot into Social Security. Since Social Security had more money coming in than it had to pay in benefits to retired persons, all that extra money was immediately used to buy U.S. Government securities. The government was still running deficits, but since there was so much money coming from excess Social Security contributions there was no need to borrow more money directly from the public. As such, the public debt went down while intragovernmental holdings continued to skyrocket.
In short, there was no surplus, as Clinton claimed. The federal government covered the deficit by “borrowing” money from the Social Security surplus.
“Cabal puppet politicians never mention that the Social Security system has been compiling a huge surplus since it was created. Why? Because they’ve been illegally looting that surplus for years to hide the real size of the current federal budget deficit,” writes Norman D. Livergood.
Social Security was designed during the FDR regime to be a slush fund. Surpluses from the fund were used by Lyndon Johnson to pay for the so-called “Great Society,” the NASA space race with the Soviets, and the military industrial complex’s Vietnam War.
Social Security is another government theft operation. Now we are told it is broke and there will be no money left for retiring boomers. It looks like they will have to work until they drop despite the decades of government propaganda about Social Security and the “social safety net.”
Bush and then Federal Reserve boss Alan Greenspan said Social Security was broken and the only way to fix it was to “privatize” it – in other words, transfer the funds over to the Great Wall Street Casino, which is invariably a losing game for the average American (and designed to be).
You can almost hear the Wall Street banksters and “investors” salivating as they consider the prospect of trillions of Social Security money expropriated at gunpoint from tax payers and employers being fed into the stock markets where it will disappear like money invested in Bernie Madoff’s Ponzi scheme.
This article was posted: Tuesday, June 5, 2012 at 11:48 am