JUST MONEY FIVE

The following 1-minute video shows former Chairman of the U.S. Federal Reserve Bank, Alan Greenspan, educating former Congressman, Paul Ryan, about Social Security solvency. I’ve used it before, but Greenspan’s words are relevant to recent congressional budgetary arguments. Ryan begins by asking Greenspan to agree that Social Security benefits would be more secure if a percentage of retiree contributions were invested in personal retirement accounts (Wall Street Individual Retirement Accounts – IRA’s) rather than the government run Social Security system. Greenspan’s reply lays bare the ignorance of both Ryan and current budgetary arguments:

 

https://www.youtube.com/watch?v=DNCZHAQnfGU

 

Let’s look at this conversation:

Congressman Ryan: “So [do you believe], having personal retirement accounts is another way of making future retiree benefits more secure? And also, do you believe that personal retirement accounts, as a component of system solvency, does help improve the system solvency, because when you have personal retirement account policy accompanied with a benefit offset [social security benefit reduction] – with that feature in place, do you believe personal retirement accounts can help us achieve solvency for the system?”

Chairman Greenspan: “I wouldn’t say the pay as you go benefits (Social Security payments) are insecure in the sense that there’s nothing to prevent the Federal Government from creating as much money as it wants and paying it to somebody. The question is, how do you set up a system which assures that the real assets are created which those benefits are employed to purchase.”

Greenspan’s reply should awaken us. In two sentences, he lays bare all of the falsehoods, the ignorance, we hear from our politicians.

Greenspan: “I wouldn’t say the pay as you go benefits are insecure in the sense that there’s nothing to prevent the Federal Government from creating as much money as it wants and paying it to somebody.” In other words, the Federal Government is the source of the nation’s money. It can always create the money needed to make future Social Security payments. Greenspan continues: “The question is, how do you set a system which assures that the real assets are created which those benefits are employed to purchase. In other words, the goods and services retirees will need must be available or Social Security payments could be inflationary. But there is no monetary reason why the Social Security System can ever become insolvent. It’s a political – not a monetary – decision. Yet “our” politicians bleat in mass – – – “the government is broke – we can’t afford it.”

The charade continues – – –

Greenspan: “there’s nothing to prevent the Federal Government from creating as much money as it wants and paying it to someone.” In other words, the so called “debt ceiling” is a farce, a tool for political extortion. The Federal Government can always pay its “debts,” in full, any time it chooses. It’s a political – not a monetary – decision. Politicians bleat – – – “government is broke – we can’t afford it.”

Greenspan: “there’s nothing to prevent the Federal Government from creating as much money as it wants and paying it to someone.” In other words, repairs to crumbling roads and failing bridges, replacement of lead pipes in city water systems, construction of low-cost housing, national public healthcare, etc., can always be paid for by the Federal Government. It’s a political – not a monetary – decision. Politicians bleat – – – “government is broke – we can’t afford it.”

And now we come to one of the greatest awakenings in human history. Almost Biblical. Politicians of every color, stripe, gender, size and shape bleat in mass: “The military/industrial complex is knocking on the Capitol doors! Greenspan said: the Federal Government can create as much money as it wants and pay it to someone. How much does the Pentagon need! Only a trillion? That can’t be enough! Give em a couple hundred billion more! Greenspan said we could.”

There’s whispers in the halls of congress: “How much did Lockheed contribute to your campaign?”

Below is a list of the top 11 threats to democracy in America and the future of all humanity:

Lockheed Martin Corp.

Raytheon Technologies Corp.

General Dynamics Corp.

Pfizer Inc.

Boeing Corp.

Northrup Grumman Corp.

Humana Inc.

HII Corp.

L3Harris Technologies Inc.

BAE Systems PLC

United States Congress

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