You know the old rule of thumb about laws–
The more high-sounding the legislation, the more destructive its consequences.
Case in point, HR 3293– the recently introduced Debt Limit Reform Act. Sounds great, right? After all, reforming the debt seems like a terrific idea.
Except that’s not what the bill really does. They’re not reforming anything. HR 3293′s real purpose is to authorize the government to simply stop counting a massive portion of the US national debt.
You see, one of the biggest chunks of the debt is money owed to ‘intragovernmental agencies’.
For example, Medicare and Social Security hold their massive trust funds in US Treasuries. This is the money that’s owed to retirees.
In fact, nearly $5 trillion of the $17 trillion debt (almost 30%) is owed to intragovernmental agencies like Social Security and Medicare.
So now they basically want to stop counting this debt. Poof. Overnight, they’ll make $5 trillion disappear from the debt.
On paper, this looks great. But in reality, they’re setting the stage to default on Social Security beneficiaries without causing a single ripple in the financial system.
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5 comments:
They all have to go... term limits need imposed and the corruption removed.
This way they can say both Medicare and Social Security are now broke and need to be stopped. If they would put back the money that they stole, and crack down on the other people who are stealing from the program it would probably be solvent for many more years to come. But no, lets keep sending money over to the Brotherhood in Egypt. Despicable bastards.
This is nothing new.. This is the way the STOCK MARKET values have been calculated for many, many years.. AND the way INFLATION values are calculated. The first rule of statistics is to decide what result you want to show and work to that end.
Cut their pay roll (politians)
further proof that $$ is NO object!
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