It legally comes directly from its OWN tax fund — not the General Treasury Account.

Even at this time FICA taxes collected exceed expenditures.

The excess is used to purchase US Treasury Bonds on the same terms as the rest of the auction.

These bonds are held in electronic form in an account at the US Treasury. This account is the ‘lockbox’ of ill repute.

The FICA taxes are NOT sent to the General Account until they step through this T bond buying mechanism.

That’s how the US Government shifts the taxes around.

The official Treasury debt bandied about includes this intra-governmental position which is mathematically required under the law.

So it is entirely false that the Wan can shut off Social Security. It’s on autopilot.

There is no legal way for the Resident to shut off the payments. The money is always going to be there and they are mandated.

The threat to SS is in the near future — but well after 2012.

I make my future.

So we let you believe…
Stalin…

One does not make a future in a lifeboat of fools…

🙂

[Chairman Bernank]
Who, day and night, must scramble to do the printing,
Feed the banks and trusts, say his daily lies?
And who has the right, as master of The Fed,
To have the final word in DC?

The Chairman, the Chairman! Tradition.
The Chairman, the Chairman! Tradition.

[Mama Frank]
Who must know the way to make a proper hearing,
A queer hearing, a kosher hearing?
Who must raise the debt and run the hearing,
So Chairman’s free to cook the nation’s books?

The Mama, the Mama! Tradition!
The Mama, the Mama! Tradition!

[Congressmen]
At three, we started Hebrew school. At ten, we learned to lie.
I hear they’ve picked a district for me. I hope it’s pretty.

The Congressmen, the Congressmen! Tradition!
The Congressmen, the Congressmen! Tradition!

[Bankers]
And who does Mama owe for money and young dicks,
Preparing laws to bailout whoever The Chairman picks?

The Bankers, the Bankers! Tradition!
The Bankers, the Bankers! Tradition!

by hedgeless_horseman

if i were a wealthy man!!!!

The Fed Chairman told Rep. Paul it was nothing more than tradition, and, as he was attempting to develop his argument

so people around the world are buying tons of protection for tradition…

and yet these are the same people that despise santa clause and the easter bunny…

-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-

Rep. Ron Paul, Republican for Texas, asked Bernanke why a capital injection of more than $5 trillion “hasn’t done much” to help the consumer, who makes up about two-thirds of GDP in the U.S., and prop up the economy, while it helped boost corporate profits. “You could’ve given $17,000 to each citizen,” Ron Paul claimed.

————————————————-

This should show that hiring economic illiterates (communists by any name) to run a capitalist enterprise, means it will collapse and fail for several fundamental reasons… too numerous to list here…

but in this case, what is clear is that an academic is not a competent person to actually run anything. they feign competence, invent excuses, completey have no common sense, follow fads pretending erudition doing so, completely ignore the despotic, can shut their consciousness off clinically, are willing to happily experiment on children (calling it social engineering), sell others down the river, and have very little concept of reality, except for what they read… which tend to be descriptions of reality by the other out of touch people.

[we would do better to be lead by humble engineers, than academics pretending engineering of society with hubris bordering on the criminally insane]

Bernanke, clearly on the defensive, told Rep. Ron Paul that his institution hadn’t spent a single dollar, rather, the Fed has been a “profit center” according to the Chairman, returning profits to the federal government.

Now count me a bit strange, but since when is a state allowed to make ‘profit’, and if it does, since when does a representative state get to keep such..

As Bernanke began to sermon Rep. Paul on the history of the Fed (“we are here to provide liquidity [in abnormal situations],” the Chairman said), he was interrupted.

shows that when i step into my tiny 47″ x 57″ office, i am actually stepping out of the asylum run by what?

I make my future. 🙂

Their attitude costs them dearly and will cost them.

No Tovarish, they will cost all of us dearly…

You were smart.

I’ve also been setting up multiple sources of retirement.

I advise anybody ESPECIALLY people with a CALPERS retirement (CA) to set aside significant amounts for your future on top of your supposed retirement.

To not do so is at your own peril.

I’m AMAZED at the number of managers at the state of CA who when 3 day furloughs hit had to foreclose on their homes, couldn’t meet house payments, couldn’t figure out a way to make their budget work.

I’m amazed to hear the number of people (who work at the state) who carry large balances on their credit card, who do not have ANYTHING set aside for their future.

All financial planners will tell you you should have 6 months pay set aside for emergencies (fairly liquid).

They will all tell you to diversify.

They will all tell you not to carry balances on your credit card.

These people I’m talking about have worked at the state 20 years!!! Their attitude costs them dearly and will cost them.

What has not yet happened is the recognition that the money is not there to pay out the benefits at the level promised. The attitude seems to be that, if we can just keep things afloat long enough, eventually the economy and stock market will recover and make us whole. Not with the policies that the Obamites are pursuing.

to which i let Bernanke respond:

Bernanke said in prepared remarks that the economy is growing more slowly than expected, and should that continue the central bank stands at the ready with more accommodative measures.

“Once the temporary shocks that have been holding down economic activity pass, we expect to again see the effects of policy accommodation reflected in stronger economic activity and job creation,” he said

“However, given the range of uncertainties about the strength of the recovery and prospects for inflation over the medium term, the Federal Reserve remains prepared to respond should economic developments indicate that an adjustment in the stance of monetary policy would be appropriate.”

Markets reacted immediately to the remarks, sending stocks up sharply in a matter of minutes. Gold prices continued to surge past record levels, while Treasury yields [cnbc explains] moved higher as well.

of course the dingbats are saying “see, the stocks went up” as they are economically illiterate and dont get spending a dollar while its worth 25 cents rather than 5 cents…

But some analysts pointed out that, while Bernanke was suggesting the Fed might add stimulus, he also was saying that the current “soft patch” may prove temporary.

“The bottom line is that he has to say he will respond if needed, but it seems he’s saying it more as lip service than anything because ultimately he still expects that this slowdown was temporary,” said Tom Porcelli, chief U.S. economist for RBS Capital Markets in New York.

So its not hard to see that people assume validity then throw each sides dirty underwear at each other until something ‘sticks’…