Who’s holding the line on Social Security? Not Obama—or the AARP

Social Security Advocates Deplore AARP Decision To Put Social Security On Chopping Block
Brian Beutler | June 17, 2011, 1:47PM

An article in Friday’s Wall Street Journal has Social Security advocates angry and scratching their heads. It suggests that AARP — one of the most powerful interest groups in Washington — has done an about face on the question of cutting retirement benefits for seniors as part of a grand bipartisan bargain on shoring up the programs finances.

The change in posture, agreed to by AARP’s board, has already sent shock waves through the Beltway’s large and influential entitlement reform community. It’s prompted calls from lawmakers and centrist and conservative groups for Congress to seize the initiative and agree to cut benefits. It’s mobilized Social Security’s strongest advocates against AARP, and it’s prompted AARP to initiate a partial walk back — a statement calling the story “misleading, but reiterating that the group could support Social Security reforms if they don’t cause future retirees too much pain.

“It has also been a long held position that any changes would be phased in slowly, over time, and would not affect any current or near term beneficiaries,” says AARP CEO A. Barry Rand — in other words, the group could support some cuts, so long as they only impact people many years away from retirement.

Read more


  1. Bev

    June 19, 2011 at 11:45 am

    from Michael Hudson:

    Instead of losing on their bad bets, bad loans, toxic mortgages and outright fraudulent claims, the financial institutions cleaned up, at public expense. They collected enough to create a new century’s power elite to lord it over “taxpayers” in industry, agriculture and commerce who will be charged to pay off this debt.

    If there was a silver lining to all this, it has been to demonstrate that if the Treasury and Federal Reserve can create $13 trillion of public obligations – money – electronically on computer keyboards, there really is no Social Security problem at all, no Medicare shortfall, no inability of the American government to rebuild the nation’s infrastructure.

    The bailout of Wall Street showed how central banks can create money, as Modern Money Theory (MMT) explains. But rather than explaining how this phenomenon worked, the bailout was rammed through Congress under emergency conditions. Bankers threatened economic Armageddon if the government did not create the credit to save them from taking losses.

    Even more remarkable is the attempt to convince the population that new money and debt creation to bail out Wall Street – and vest a new century of financial billionaires at public subsidy – cannot be mobilized just as readily to save labor and industry in the “real” economy. The Republicans and Obama administration appointees held over from the Bush and Clinton administration have joined to conjure up scare stories that Social Security and Medicare debts cannot be paid, although the government can quickly and with little debate take responsibility for paying trillions of dollars of bipartisan Finance-Care for the rich and their heirs.

    from: Byron Dale

    Best Political Quote in Over 100 years!

    “If men can create electronic bookkeeping entries representing debt and loan them into circulation, men can surely create electronic bookkeeping entries as a payment and spend them into circulation with no debt. Which do you prefer?”

- Gregory K. Soderberg, Rep. Candidate MN. Lt. Gov., 2010

    The Problem: Monetary Policy (how money gets into the economy) The Side Issue: Economic Policy (what happens once money is already in the economy)

    How money gets into the economy.

    This is the key to the solution.

    There are only 3 ways money can get into the economy and all 3 have their own set of consequences. Those 3 ways are:
    Gift it in
    Lend it in
    Earn it in

    Gift It In

    This way promotes many problems, from financial to moral. If you place a flatbed trailer of $100 Federal Reserve Notes at every major intersection and invited people to come grab as much as they could hold in each hand, once per day, a few things would happen for sure.

    First, it would lose its value, not so much because of any “economic rule” of formula, but because I would not want the money in your pocket when I can get my own – and more than I can spend – tomorrow! So if I were a merchant, why would I want your $100 Federal Reserve Notes (FRNs)? They are not hard to come by and they, in no way, represent production – past, present, or future.

    Second, There would be few products to buy with your handfuls of FRNs. Why? Because who is going to go to work, when tomorrow they can go down to the corner and get 2 handfuls of $100 FRNs? No work? No products get made (production). No products get made? Nothing to buy with your fist full of FRNs – or with your electronic checkbook money either!

    Lend It In

    There is NO money created in this process to pay interest with – only principal is created when a loan is made. So, it’s unworkable from the start. Looks OK at first – easy money! But, it’s a Ponsi scheme. A Bernie Madoff heist. It institutionalises corruption and criminality and leaves the Nation without a permanent money system while guaranteeing its people eventual economic destruction.

    Earn It In

    First, this way, there’s no debt. Government would create the money (same as the banks do now) and enter it on their books as an asset, instead of a debt. Contractors get paid for production that we need (infrastructure) and they pay their workers – who buy stuff. No debt, no borrowing, no bonding, no tax increase, no tolls, good modern roads, safe bridges and a huge debt-free stimulus. That means JOBS!

    If You Do Nothing

    The only reason not to learn how this works is either pride and hard-headedness in the face of pure logic, or that you like debt, borrowing, taxes, tolls, corruption, criminality, unpayable interest and ultimately, an economy in ruin. If you like those things and like the international bankers stealing your money by deceiving you, don’t change a thing.

    Make One Small Change

    This could be implemented within 72 hours (maybe less) of passage. The bill is TWO PAGES! Congress could actually read it for a change.

    Nothing but an accounting procedure needs to change. Oh, and your mind. You have to want the change. If you think you can’t – you can’t. If you think it can’t be done – you’re right.

    It’s obvious most politicians don’t understand.
    The bankers know full well and they are counting on YOU not understanding, too.

    There Is One Way That New Money Is Created or “Born”.
    One Way.

    A Loan.

    That means:

    1. When a loan is made, only the principal is created.
    2. If only the principal is created, then no money is created to pay the interest on the loan.
    3. Therefore there is always more debt than money to pay it.

    If all money is created as a loan, then taxes are paid with loan principal (borrowed money).
    Increasing taxes WILL MAKE THINGS WORSE!

    Why? If taxes are to be paid in money, and all new money is loaned into existence, then somewhere the money collected as taxes had to be borrowed. You cannot borrow your way out of debt. Increasing taxes will place a two-fold burden on the economy (less money to grow the private sector, and an increase in private sector debt) and you will worsen the depression.

    Expect more lay-offs, more inner city decay, decreased revenue as fewer people can find work.

    Oh, and expect voters to blame you.

    If the principal on a loan payment gets extinguished at the time of payment, then “balancing the budget” WILL MAKE THINGS WORSE!

    Why? If the only source of new money coming into the economy is new loans (government, business or personal) and you slow the new borrowing, while at the same time loan payments are being made (mortgages payments made, car payments made, credit card payments made, government bonds paid, Treasury securities redeemed, student loan payments made) and that principal amount is extinguished from circulation, you will worsen the depression. Study this illustration.

    Increasing taxes will make things worse.
    “Cutting spending” (they should say borrowing) will make things worse.

    Your ONLY remedy is a wealth based monetary system.

    With a wealth based money system, you could turn this economy around in a flat hurry, launch a full scale, value added infrastructure rebuild, pay off our debts, build a thousand ship ocean clean-up fleet (for oil, toxic chemicals and plastics), bring desalination plants online, rebuild the electric grid, provide jobs, jobs, jobs, and heal the world of this economic cancer called debt money.

    Or, do as you have been doing and rearrange the deck chairs some more, as this debt money system begins to groan in earnest, rivets popping and our nation taking on water faster then we can bail it out. It will sink. It’s math – you can’t outrun it, no matter how many knobs you turn or switches you flip – you cannot borrow yourself out of debt!

    If the GWP (Gross World Product) is just over $70 Trillion, and the U.S. owes over $250 Trillion, how will raising taxes fix that balance sheet? How will cutting spending fix this when the gross production OF THE ENTIRE WORLD cannot pay what we owe?

    You cannot fix it with the same thinking as created this debt cancer. You need a cure.


    Demand a wealth money system, before it’s too late.

    The Global Debt Crisis: How We Got in It and How to Get Out

    Countries everywhere are facing debt crises today, precipitated by the credit collapse of 2008. Public services are being slashed and public assets are being sold off, in a futile attempt to balance budgets that can’t be balanced because the money supply itself has shrunk. Governments usually get the blame for excessive spending, but governments did not initiate the crisis. The collapse was in the banking system, and in the credit that it is responsible for creating and sustaining.

    Contrary to popular belief, most of our money today is not created by governments. It is created by private banks as loans. The private system of money creation has grown so powerful over the centuries that it has come to dominate governments globally. But the system contains the seeds of its own destruction. The source of its power is also a fatal design flaw.

    The flaw is that banks advance “bank credit” that must be paid back with interest, while having no obligation to spend the interest they collect so that borrowers can earn it again and again, as they must in order to retire the debt. Instead, this money is invested in various casinos beyond the borrowers’ reach. This leads to a continual systemic need for more new bank credit money, more debt with more interest attached, to prevent widespread defaults and deflationary collapse.


    The Way Out: Return the Money Power to Public Control

    To escape the debt trap of the global bankers, the power to create the national money supply needs to be restored to national governments. Alternatives include:

    Legal tender issued directly by national treasuries and spent on national budgets.
    Publicly-owned central banks empowered to advance the nation’s credit and lend it to the government interest-free.
    Nationalization of bankrupt banks considered “too big to fail” (after expunging or writing down bad debts on inflated bubble assets). These banks could then issue credit to the public and serve the public’s banking needs, with the profits recycling back to the government, defraying the tax burden on the people.
    Publicly-owned local banks (state, provincial, or municipal).

    Publicly-owned banks have been successfully established and operated in many countries, including Australia, New Zealand, Canada, Germany, Switzerland, India, China, Japan, Korea, and Malaysia.

    In the United States there is currently only one state-owned bank, the Bank of North Dakota. The model, however, has proven to be highly successful. North Dakota is the only U.S. state to have escaped the credit crisis unscathed. In 2009, while other states floundered, North Dakota had its largest budget surplus ever. In 2008, the Bank of North Dakota (BND) had a return on equity of 25%. North Dakota has the lowest unemployment rate in the country and the lowest default rate on loans. It also has the most local banks per capita.

    North Dakota has had its own bank since 1919, when farmers were losing their farms to the Wall Street bankers. They organized, won an election, and passed legislation. The state is required by law to deposit all its revenues in the BND. Like with the sustainable model of the bank of colonial Pennsylvania, interest and profits are returned to the government and to the local economy.

    A growing movement is afoot in the United States to copy this public banking model in other states. Fourteen U.S. state legislatures have now initiated bills for state-owned banks.


    Bill Still hose book and video, “The Secret of Oz”, shows that we have won this same battle (Money controlled by government–a Debt Free Monetary system, which several times was backed by silver)…we have won this same battle six times in the past, fought successfully by the likes of George Washington, Abe Lincoln and John F. Kennedy among other Presidents who were then warred against, assassinated, or attempted to be assassinated.

    So, we need to win again for the 7th time, and strongly support all our politicians who support us by turning this economy around fast with a Debt Free Money System, accomplished by making an accounting change.

  2. Ann Pettus

    June 21, 2011 at 10:16 am

    Several years ago AARP came out against some bill that would have helped seniors afford their medications, I forget what it was.

    Anyway, that made it completely clear that the organization had been co-opted by big money interests, as grassroots orgs so often are nowadays. Apparently the scheme of choice is to have “individuals” make huge contributions so that they’re offered seats on the board of directors.

    When enough of these trolls get the desired positions, the balance tips and now you have an org that everyone THINKS is grassroots but is actually nothing but a huge lying propaganda machine – that despicably feeds off the dues of its own unsuspecting members.

    This latest egregious move by AARP should not surprise anyone. We need to wise up and realize that the old Russian- and Chinese-style obvious propaganda is not what’s being used on us. Ours is infinitely more hidden and insidious.

  3. Mark Crispin Miller

    June 21, 2011 at 10:21 am

    Boy, you are so right.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.