Seniors future tapped to keep government going

by Larry Geller

Well, where did you think the government was going to get funds to keep running after it hit the debt ceiling last week? Here’s where the money will come from:

Now that it has finally been made clear that in order to accommodate the debt ceiling by adding marketable debt, the Treasury has no choice but to literally plunder retirement accounts, we now know that in order to fit in the just announced $110 billion in new bond issuance over the next week, Tim Geithner will have to reduce US retirement funding (the bulk of which, the Social Security Trust Fund already lost $1.1 trillion in the past year) by at least $45 billion.

[Zero Hedge, Treasury Prepares To Plunder Another $45 Billion From Retirement Funds As It Issues $110 Billion More Debt Next Week, 5/19/2011]

So the Treasury has “no choice” but to plunder retirement accounts, which are the life contributions of workers expecting to retire on Social Security.

Conveniently, later Republicans can say that Social Security is failing.

Unfortunately, while they salivate at the chance to privatize Social Security to “fix” it, but what will they plunder next time if it’s privatized?

Will seniors, 59% of whom now vote Republican, keep returning these bandits to office?

Maybe a special election just concluded in upper New York State provides a straw on which to grasp—the Democrat won in what is described as an upset victory. Recognizing a spark of hope, President Obama himself grasped for it:

"I want to extend my congratulations to Congresswoman-elect Kathy Hochul for her victory," President Barack Obama said in a statement released by the White House.

"Kathy and I both believe that we need to create jobs, grow our economy, and reduce the deficit in order to outcompete other nations and win the future," the president added. "I look forward to working with her when she gets to Washington.

[AFP, Democrats score upset victory in NY election, 5/24/2011]

If seniors want to protect their Social Security and Medicare benefits, they might consider changing their loyalties in the 2012 election. It just doesn’t compute to elect representatives who turn on the voters who put them there.