Category Archives: Corruption

It isn’t, wasn’t, aint ever gonna be…

I mentioned Social Security as an entitlement payment in my post on the government shutdown, and it raised a fairly common objection in several who read it:

They don’t think of Social Security as an entitlement, or a welfare payment; they view it as their right, by virtue of having contributed to the system for their entire working life.

So, time to correct a very major, and unfortunately common, misconception.

Social Security, is NOT a pension, nor is it insurance.

Now, I realize that the majority of the American public believe this is so, because they have been deliberately defrauded by our government…

First read this to understand the scope and scale of the fraud, and the problem it (now only vestigially) masks:

The Greatest Fraud in the History of the Human Race

Ok… so, by now, most people understand that Social Security, as it is, is essentially a legal Ponzi scheme (whether they accept that, or admit it… if they can do basic match, they at least understand it).

What I really didn’t fully appreciate until recently, is that often, even people who understand this is true, don’t understand why or how it got that way.

There is a very common misconception, even among otherwise economically, historically, and legally well informed and educated people, that the current state of Social Security is somehow a twisting of what it was intended to be, or taking advantage of loopholes etc…

Many people believe that Social Security was set up to be an annuity based insurance and pension plan. That paying FICA contributions was supposed to buy you into a long term annuity, or investment plan, and that your Social Security payments were intended to be the product of that investment.

They think that the “trust fund” exists, and was set up to collect and invest the contributions of the workers who paid into it, so that the investments would fund the workers retirements.

They believe that the problem with Social Security is that congress has been raiding the trust fund since 1958 (most don’t know it was since ’58, but they are sure that’s why Social Security is broke).

Unfortunately, every bit of this idea is entirely incorrect… and people who hold that idea generally do so, because they were deliberately misled.

I’s simply not true… though many… perhaps most… people believe it is; but in fact, Social Security was always nothing more than a pyramid scheme, and an entitlement.

They misunderstand entirely… Because they have been deliberately deceived; as has been the majority of the population.

Social Security was NEVER, EVER, an annuity, pension, or insurance.

Actual insurance, annuities, pensions etc… were not part of the legislation that created it, or anything thereafter.

Also, there never was an actual “trust fund” as such… simply an accounting of surplus contributions which were, in theory, to be placed into low yield “no risk” treasury bonds.

Note, I said “surplus contributions”… this means contributions in excess of payouts to existing recipients. Because benefit payments are not made from the proceeds of investment, they are made using the payroll taxes of those currently paying in today (this is why we call Social Security a ponzi scheme… When Bernie Madoff does it, it’s fraud and he goes to jail. When the government does it, it’s… well it’s still fraud, even worse fraud… but no-one goes to jail sadly).

The sham of it, particularly the sham of the accounting trick they called the “trust fund” was publicly proclaimed as early as 1936 (by Alf Landon in his presidential campaign).

Social Security is, and always has been, a tax and entitlement distribution scheme.

The government lied, and called it insurance, but in fact it has never been anything other than a payments and distributions pool, funded by taxes.

You can look it up, in 42usc (the section of U.S. code defining the various programs known as Social Security).

The programs collectively known as Social Security are referred to as insurance several times, but in fact they very clearly are not. The legal definitions and descriptions make this very clear. Social Security is a tax and entitlement disbursement scheme, by act of congress.

There is no individual ownership, no accrued value, no capital gain, it cannot be transferred, and it can be changed (or removed), at will, by congress; without being construed as a taking without due process.

It is NOT INSURANCE.

Perhaps I am not explaining this properly…

It’s not that congress went against the intent, or written provisions of the law, and changed Social Security from what it was supposed to be, to what it is…

It’s that in fact, the law was NEVER what they told the American people it was.

In fact, if the law HAD been what they sold it as, then that law would have been declared unconstitutional by the supreme court (as had the earlier railroad pensions act, which actually DID created a property based pension scheme). It was specifically because it WAS a tax and distribution, that congress had the power to do it; and was argued thus before the court in 1937.

Helvering v. Davis clearly defines Social Security “Contributions” as a tax, and social security “benefits” as welfare payments. This is the basis for it’s constitutionality.

Fleming v. Nestor in 1960, reaffirmed that FICA is a tax, and that the “contributions” are government property, to be done with as the government sees fit; and that “contribution” through FICA did not cause one to accrue a property right to any asset, pension, or insurance scheme, nor did it create a contract consideration, right, or obligation on the part of the government. Further, it affirmed that “benefits” were NOT insurance or pension disbursements, but entitlements by act of congress, and that congress could change them at any time in any way they chose, without being construed as a taking under the 5th amendment (though they did say that they must have cause and due process to do so… but any legitimate cause within their purview would do).

Justices Black and Reich, specifically dissented from the majority opinion, explicitly and expressly addressing the issue of property rights. They believed that such contributions, to such a program, SHOULD as a matter of moral and public good, be considered property, and have property rights attached. They acknowledged however that the law as written did not, and that by strict interpretation the majority was correct… They just thought it was better to make it property anyway.

Unfortunately, it’s not… It is neither a pension or insurance, and never has been, from the very beginning.

However, almost every explanation ever given the public, and in most documentation, it is referred to as insurance, or even a pension.

All as part of the greatest fraud in the history of the human race.

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

Quote of the Day: Failed Attempt at Intimidation Edition

“If the UK and US governments believe that tactics like this are going to deter or intimidate us in any way from continuing to report aggressively on what these [Snowden] documents reveal, they are beyond deluded. If anything, it will have only the opposite effect: to embolden us even further. Beyond that, every time the US and UK governments show their true character to the world – when they prevent the Bolivian President’s plane from flying safely home, when they threaten journalists with prosecution, when they engage in behavior like what they did today – all they do is helpfully underscore why it’s so dangerous to allow them to exercise vast, unchecked spying power in the dark.”

Glenn Greenwald writing in response to his partner David Miranda’s 9 hour detention by UK authorities at Heathrow Airport.

Joe Scarborough vs. The Minister of Truth

MSNBC is typically a safe place for the Obama administration to promote talking points, propaganda, and bald faced lies. Imagine Press Secretary (or more accurately, Obama’s Minister of Truth) Jay Carney’s surprise on Morning Joe when the host Joe Scarborough wouldn’t allow him to get away with arguing that the ongoing congressional investigations into the Obama Administration are ‘phony scandals’.

Visit NBCNews.com for breaking news, world news, and news about the economy

The Minister of Truth, Jay Carney:

“The president will go back to Galesville, Illinois today to deliver a speech about where we need to move the economy, what we should be focusing on here in Washington. And it shouldn’t be on the skirmishes that cause gridlock. It shouldn’t be on the phony scandals that have consumed so much attention here, uh, all to come to not. It should be focused on what we can do to strengthen and grow the middle class…”

Scarborough responded:

“You brought up ‘phony’ scandals. That’s like, seriously? That’s like throwing red meat in the middle of a dog. So I’ve got to ask you this question: ‘What phony scandals?’ Do you think the IRS scandal is a ‘phony scandal’

Carney responded by saying the Republicans have been ‘cherry picking’ information and that the president has cracked down on officials who have been responsible for any wrong doing. Carney went on to say that President Obama “is not focused on pretend scandals that Republicans want to turn into partisan skirmishes.”

Scarborough would have none of it.

“You say that there’s cherry picked information…let’s just take this IRS scandal. The fact is its far different from what you said. In the beginning you just said it was the Cincinnati office and then we find out there were more people in Washington involved. In this past week we found out that despite what any of us think about the investigations on Capitol Hill…I see you smiling…I don’t know that there’s anything to smile about. That this wasn’t just a couple of crazy people in Cincinnati. This information actually went up to the Chief Council of the IRS which was one of two political appointees by the President of the United States and the entire IRS.”

Carney then accused Scarborough of contributing to the ‘line’ by Republicans.

“Is that the truth or not, Jay.” Scarborough interrupted. “Don’t give me talking points. That doesn’t work on my show and you’ve been here long enough to know…I’m not someone you can talk down to from your podium. Answer my question, Jay!”

In so many words, Carney didn’t take back his assertion that the scandals in question are ‘phony’ and that “we need to get to the bottom of what happened at the IRS” but the public’s attention and the attention of congress should be on the economy (how bad can the truth behind these scandals be if the president wants to get the public’s attention back on a very anemic economy?). In other words, pay no attention to the scandals behind the curtain or to the fact that the emperor is wearing no clothes.

This is a very interesting comment considering that Carney’s boss wanted to turn the nation’s attention back to the George Zimmerman not guilty verdict last week.

Your Ox Will Eventually Be Gored

It seems logical that every American, regardless of political affiliation/philosophy, race, religion or creed, would be concerned about the revelations concerning domestic spying on the part of the NSA. If the Obama administration can spy on and mistreat the Tea Party and other right wing causes, the next Republican administration could spy on and mistreat Occupy Wall Street and other left wing causes.

As it turns out, this is not necessarily the case. According to an article by David A. Love, the black community has largely greeted this news with a shrug and a yawn.

Is this lack of concern because many blacks do not want to be critical of the first black* president? This might account for some of this shrugging but Love suspects that there is something much deeper at work here:

The black community has decades of experience being monitored, so this type of surveillance is nothing new. Given the long history of being spied upon, many blacks already assume they are being monitored by the government […]
[…]
African-Americans are no strangers to surveillance, as their activities were highly regulated through the slave codes, laws which controlled both slaves and free blacks.

The mistreatment of blacks did not end when slavery was abolished, of course. Love goes on to describe several other atrocities such as the Tuskegee experiment, J. Edgar Hoover’s illegal spying on Martin Luther King Jr., Malcolm X, the Black Panthers, and others.

Tragic chapters such as Tuskegee have been cited as a reason why African-Americans distrust the medical establishment and are hesitant to participate in clinical research. One study found that 67 percent of black parents distrusted the medical profession, compared to half of white parents.

As I read this, I wondered why there isn’t a similar distrust of the government as the medical establishment by blacks in general. The Tuskegee experiments were done at the behest of the U.S. Public Health Service, after all!

After finishing the article, I decided to read through the comments section (this is a blog that is dedicated primarily with concerns of the black community; the comments can sometimes be very illuminating). The very first comment by a user with the handle “Blackheywood Heywood” did not disappoint:

The US government began spying on Black folks before this government was created, yet it was no outrage.Give me a break, it seems slowly mainstream America is discovering how it feels to be thought of as suspicious or guilty before being accused, never mind arrested. Welcome to the world of the American Black male.

Heywood has a valid point. The answer to the question why the lack of outrage by the black community concerning the NSA and IRS scandals could just as easily turned against what Heywood called “mainstream America.” Indeed, where was the right (for lack of a better term) on these outrages? Where has the Tea Party been on the question of “stop and frisk,” in New York in which minorities are especially targeted to be searched, supposedly at random? Is this simply a case of “out of sight, out of mind?”

I believe there’s also another phenomenon at work: the memory hole. Near the close of the article, Love mentioned an event that took place in Philadelphia in 1985 I was completely unaware of:

On May 13, 1985, following a standoff, a Philadelphia police helicopter dropped a bomb on the house on Osage Avenue occupied by the black “radical” group known as MOVE. Police reportedly fired on MOVE members as they escaped the burning home […]
[…]
The 1985 bombing—which killed 11 people, including 5 children and destroyed an entire neighborhood of 61 row homes in West Philadelphia—marked the first such attack on U.S. citizens by government authorities. The survivors and victims’ families received $5.5 million in compensation from the city of Philadelphia.

I try my best to be informed about historical events as well as current events. How is it that this is the first I had ever heard about the Philadelphia Police dropping a freaking bomb on a neighborhood in an American city?** I must have been sick that day in American History class (I also didn’t learn about the Tuskegee experiments until well into my twenties; maybe I was sick on that day as well).

Maybe MOVE was a radical organization maybe it wasn’t*** but nothing could justify the police dropping a bomb on a neighborhood. Perhaps this atrocity is well known by people in the black community, both young and old but not so much outside the black community (or maybe I’m one of the few Americans who never heard about this but I doubt it).

MOVE probably wasn’t the first group the government described as “extreme” to a point where government officials ordered and used military force against its members; it certainly wasn’t the last. How many people out of a hundred know about what happened at Ruby Ridge? The Weaver family, why they were “extremists” after all and therefore, why should anyone care about their rights? How many people out of a hundred know about the conflicting accounts of what really happened at assault on the Branch Davidians in Waco, Texas? (Here’s a hint: a great deal more than what the MSM reported at the time). I suppose because these people were part of some sort of cult, their rights didn’t matter either!

This is where the real problem of indifference lies. I’ve heard far too many people with the attitude “it’s not my problem” or “it doesn’t affect me”. Even more disturbing is the attitude some people have that they are happy when someone of an opposing view has his or her rights of life, liberty, and/or property trampled on (i.e. “Screw them, they are ‘extremists’”). Far too often, concerns about civil liberties depend on whose ox is being gored at that particular time.

I would like to humbly suggest that if you are not as upset when its someone else’s ox, even if it’s the ox of your opponent’s, one day it will be your ox that will be gored. Perhaps Martin Niemoller said it best in his very short work “First they Came” describing how the Nazis took freedom away from the whole population, one group at a time. By the time the Nazis got around to taking freedom from what remained of the population, Niemoller concluded “there was no one left to speak for me.”

To be clear, I am not comparing the U.S. government to the Nazis. Such hyperbolic comparisons are not constructive and minimize the very crimes against humanity the Nazis committed. I am making a comparison about how populations respond to encroachments on liberty, however. As demonstrated in Love’s article, there are plenty of examples of injustice from American history.

Here are just a handful more:

  • The Indian Removal Act
  • Slavery
  • The internment of Japanese Americans
  • Jim Crow
  • McCarthyism

And many, many more.

Each of these policies were permitted to happen because the majority apparently felt that curtailing freedoms of these minorities would somehow not affect their own freedoms. We should acknowledge that these injustices occurred and try to learn the right lessons (rather than pretend the U.S. government or the American people have committed no wrongs ever) and move on.

Every injustice and every violation of rights of life, liberty, and property must be answered by all of us as if it’s our own liberty that is at stake.

*Yes, I’m aware that Obama is actually half black. However, if a man of his description was accused of committing a crime and at large, he would be described as a black man.

**In light of this, Rand Paul’s questions about government using drones to attack Americans on American soil no longer seem so far fetched, unfortunately.

***All I know is what I read in the cited article.

Quote of the Day: “Highest Honor” Edition

“Being called a traitor by Dick Cheney is the highest honor you can give an American…”

- Edward Snowden in response to Cheney and others calling him a traitor for his NSA leaking.

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