Friday, November 16, 2012

Clinton 'Surplus'? Never Happened.

Question:  Why did you rob Social Security?

Slick Willy:  Because that's where all the money was.

Christopher Whalen at Institutional Risk Analytics:

"Presumably former Chairman [Paul] Volcker understands the difference between raising revenue to eliminate a deficit and merely borrowing money from the Social Security trust fund to finance a deficit. At the start of the 2000s the cash surplus from Social Security was financing the federal budget deficit, a situation that is now reversed. The federal budget deficit actually grew in those years. Today Treasury is compelled to borrow cash in the public debt markets in order to redeem earlier borrowing from the Social Security trust fund in order to pay recipients....

"When will Volcker and his peers among Fed Chairmen admit that the central bank is the main culprit in this growing national economic crisis? Is not the Fed the enabler for a national Congress literally out of control? The only sane choice is default and debt restructuring, but you will never hear Volcker or Greenspan or Bernanke ever speak such truth in public. Instead they take the cowardly path of defaulting quietly, via the printing press."

Gosh, a U.S. default?  Pretty unthinkable.  Kind of like secession.

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