By Larry Leonard
January 30th, 2011 — We talked to an Oregon Republican about this the other day. He is a member of your legislature and is brimming over with “conservative” ideas. He believes that a “compromise” can be found that will accomplish the task. Our new governor has to do it, he said. It’s in the state constitution.
I’ve lived in Oregon for 69 years.
At best, it will look like they’ve done it, but when the “compromise” is studied in detail, it will reveal the reverse. This is because Oregon Democrats are not now, and never have been, interested in limiting spending increases to revenues. Their public statements on such matters cry fiscal responsibility to the heavens, but their private actions represent a religious dedication to “investments” in education*, infrastructure and so forth. And, the only difference between an Oregon Democrat and an Oregon Republican — with extremely rare exceptions — is that the Republican wears a tie.
If you know an accountant, when the final budget is released, have him go over the thing. If he’s not a liberal accountant, he’ll discover the con jobs. What is a poliltical budget con job? Here’s an example:
The federal social security “lock box” doesn’t contain a dime. Back in the days of LBJ, congressional Democrats and RINOs eliminated the FDR-era requirement that the socsec funds that are taken from worker’s paychecks be put there, and remain there until needed for retirement benefits.
This made the socsec trust fund available for other uses, like welfare, bridges to nowhere and so forth. From that day, the lockbox has contained only IOUs. Let’s say that they are treasury bonds. The congress takes out a billion dollars and puts in the same amount of T-Bills. From an accounting standpoint, the fund still contains a billion dollars.
But, ask yourself the following question. Who pays out the money when a treasury bill is cashed in?
The taxpayers. You.
So, your socsec donations to the lockbox are taken to fund the EPA’s study of the population status of the lavender burping frog, and when you retire, the money to provide your socsec check comes from those bonds.
It’s like robbing Peter to pay Peter.
There are hundreds of such tricks available to congress and state legislatures. The new “balanced” Oregon budget bill will use them to get around the “balanced” part — which was supposed to match spending to revenues, but which now is just a financial scam.
Social Security, itself, is a pyramid scam. Illegal when Bernie Madoff did it, but legal when the government does it.
So, the “conservative” Oregon legislator we talked to fed us a line of baloney. He may have done it intentionally, or he may simply be ignorant when it comes to such things.
It doesn’t matter which. In either case, you lose.
(LL) *February 1st on the KEX (1190 AM in Portland) noon news, I just heard a tape of our new Governor saying precisely that.