Senate must raise debt ceiling above $12T

Stephanie S. Jasky, Founder, Director

By Walter Alarkon - 09/07/09 12:11 PM ET
The Senate must move legislation to raise the federal debt limit beyond $12.1 trillion by mid-October, a move viewed as necessary despite protests about the record levels of red ink.

The move will highlight the nation’s record debt, which has been central to Republican attacks against Democratic congressional leaders and President Barack Obama. The year’s deficit is expected to hit a record $1.6 trillion. FULL STORY

Sorry guys – but unless each and every American gets off the couch and stops this government from throwing all of our money at insolvent banks and other fascist ideas, your Social Security is gone – NOW. I warned about this a year ago. The unfunded liabilities coupled with the insane TARP, EESA, TALF and other programs now funneling all of our taxpayer money to insolvent institutions was always going to have dire consequences. Here’s one of them.

Stephanie S. Jasky, Founder, Director

SSTF Shocker - $6B August Deficit

Submitted by Bruce Krasting on 09/08/2009

The Actuarial analysis of the Fund is misdirected. Their focus is based on the future value. It should be focused on the here and now. In the June annual report the Trustees concluded that the Fund would be broke in 2037. This conclusion is so far into the future that it is easy for everyone involved to say, “this is a next year problem, health care comes first”. Stephen Goss the Fund’s head honcho said as much in a recent interview.

While there is a political case that we have to prioritize health care as an issue, it is wrong on a purely economic basis to ignore the exploding problems at the Fund. Every month that the status quo is allowed to continue makes the cost of the ‘fix’ that much larger. Based on the past twelve months performance I now estimate that the Net Present Value of future committed liabilities is in deficit by $7 trillion. To plug this sized hole would require a significant increase in payroll taxes. That isn’t going to happen. Raising payroll taxes by 4% would kill the economy. No White House economist would advocate that. The alternative of cutting benefits would be very unpopular. There are currently 52 million beneficiaries of the system. A lot of them vote. To shore up the fund would require across the board cuts greater than 20%. While that may not be a hardship for some it most certainly will be for others. The only way to address this inequity will be a means test. FULL STORY

Is Social Security Constitutional?

by John Attarian

May 24 marks the 66th anniversary of Helvering v. Davis (1937), in which the Supreme Court found Social Security constitutional. With Social Security’s prospects shaky, and overhaul inevitable, this is an appropriate time to re-examine Helvering v. Davis and Social Security’s constitutionality.

Helvering v. Davis was heard when the Court faced the worst crisis of its history. Indeed, the most important thing about this case is its political context.

Franklin Roosevelt’s New Deal was immensely popular with the public and he dominated the lopsidedly Democratic Congress. Only one thing thwarted Roosevelt: the Supreme Court.

The Roosevelt Administration feared that the Court would rule that the Constitution did not permit federal tax-financed old-age insurance. While the Social Security bill was in Congress, the Court invalidated the Railroad Retirement Act, which resembled Social Security. So the Administration’s allies on the House Ways and Means Committee weeded the insurance language out of the bill and physically separated the tax and benefits titles in the text so they wouldn’t look like an insurance program.

Meanwhile, the Supreme Court hammered the New Deal. On May 27, 1935, in a crushing defeat for Roosevelt, it voided the National Industrial Recovery Act and the Frazier-Lemke Farm Bankruptcy Act. It struck down the Agricultural Adjustment Act on January 6, 1936, the Guffey Coal Act on May 18, and the Municipal Bankruptcy Act and a New York state law setting minimum wages for women on May 25.

Enraged, Roosevelt decided to subdue the Court. His megalomania inflated by his 1936 landslide, on February 5, 1937 he abruptly asked Congress to enact a bill empowering him to appoint one additional Justice for every one who turned 70 and did not retire, for a maximum of six, thus enlarging the Supreme Court from nine Justices to up to fifteen.

A firestorm ensued. Critics rightly called Roosevelt’s proposal a plan to pack the Court. Even liberals who deplored the Court’s decisions, including many congressional Democrats, opposed it. FULL STORY

HONESTY. How many people feel they are honest? How many people think that the government has an endless money tree and it's OK to take government money? Well, I just felt that this story should follow the gloom financial news that Fed Up USA shared with us today.

Keep in mind, this SS Fraud Bust is just here in Muskegon County. Makes you wonder what the people working at Social Security do to prevent this. I would think that there would be some people loosing their jobs over this one.

More charged with Social Security fraud

by Heather Lynn Peters | Muskegon Chronicle
Saturday September 05, 2009,

MUSKEGON COUNTY -- A Muskegon woman who police say cashed nearly 50 fraudulent Social Security disability checks and netted almost $20,000 in the process could face life in prison.

Denise Lynn Calvin, 39, of 1975 Hoyt was arraigned in Muskegon County's 60th District Court on three felony counts of false pretenses over $1,000, but less than $20,000. She was also charged as a habitual offender and faces a maximum sentence of life in prison if convicted, according to a court official.

Altogether, 56 people face felony charges -- meaning at least $1,000 was allegedly stolen in each case -- while 153 are charged with misdemeanors.

The bust is believed to be one of the largest in Muskegon County history in terms of the number of suspects being charged.FULL STORY

FRAUD ARRAIGNMENTS

Arraignment Thursday in Muskegon County's 60th District Court on misdemeanor and felony charges related to the largest Social Security disability fraud case in Muskegon County were:

Carmen Sheretta Allen
Maria Antonia Bartee
Denise Lynn Calvin
Lakeshia Nakiah Davis
Barbara Kay Gamble
Taniko Latrese Greer
Geraldine Lorra Hilton
Dennis Dexter Hudson
Reshonda Marie Jones
Shawniccka D. Lawton.
Marquise T. Longmire
Patricia Diana Molaud
Margaret Dale Paskel
Kiera Nicole Payne
Shirley Ann Payne
John Edward Post
Richard Merrill Sheehy
Josephine West
Sophia Ronyal Williams
Yolanda Ann Woodland