All the full stories are at the links. But story #1 Tells us Moody’s is about to drop the AAA rating for the US and other countries. Translation – Borrowing rate rises.
Story #2 says the Social Security System is out of money. It has tons of paper saying the Treasury owes them money, but now for the Treasury to pay the IOU’s. it will borrow money. Translation – If story #1 kicks in, then that will cost even more, and SS is broke.
Story #3 is about how the Cloward-Piven effect is trying to collapse the US System. Brought about by two Progressives, Cloward and Piven it’s theory is to overload the system until it collapses under its own weight. Translation – Fundamentally Transforming the USA. Where has that been heard before?
Unmentioned is story #4, Health Care Reform which now seems to be a Right bestowed on us and will cost a Trillion Dollars or more. Oh, it’s said to be Deficit Neutral, and so is Santa, the Easter Bunny and the Tooth Fairy. But if you put all four stories together, add in Historic Spending and Deficits, what do you get???? It’s really not too hard to see big trouble ahead!
Moody’s warns nations to cut spending or risk AAA ratings
By Howard Schneider
Washington Post Foreign Service
Tuesday, March 16, 2010
The United States and other top world economies need to make potentially painful government spending cuts or risk losing the high-grade credit ratings that have kept borrowing affordable, the Moody’s rating agency said Monday.
Moody’s warns nations to cut spending or risk AAA ratings
European officials hold off on bailout package for Greece
Outlining the dilemma faced by policymakers in the United States, Great Britain, Germany and France, Moody’s said that debt levels in the four large credit-worthy economies had reached the point at which they are at risk of being downgraded — a step that would drive up interest rates, increase borrowing costs and mark a turn in perceptions about the world economy.
Economic recovery might ease the problem by increasing tax revenue, Moody’s reported, but “growth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion.”
Social Security to start cashing Uncle Sam’s IOUs
By STEPHEN OHLEMACHER (AP) – 1 day ago
PARKERSBURG, W.Va. — The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.
It’s time to start cashing them in.
For more than two decades, Social Security collected more money in payroll taxes than it paid out in benefits — billions more each year.
Not anymore. This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.
Sounds like a good time to start tapping the nest egg. Too bad the federal government already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors. In return, the Treasury Department issued a stack of IOUs — in the form of Treasury bonds — which are kept in a nondescript office building just down the street from Parkersburg’s municipal offices.
Now the government will have to borrow even more money, much of it abroad, to start paying back the IOUs, and the timing couldn’t be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come.
THE AMERICAN THINKER
November 23, 2009
By James Simpson
It is time to cast aside all remaining doubt. President Obama is not trying to lead America forward to recovery, prosperity and strength. Quite the opposite, in fact.
In September of last year, American Thinker published my article, Barack Obama and the Strategy of Manufactured Crisis. Part of a series, it connected then-presidential candidate Barack Obama to individuals and organizations practicing a malevolent strategy for destroying our economy and our system of government. Since then, the story of that strategy has found its way across the blogosphere, onto the airwaves of radio stations across the country, the Glenn Beck television show, Bill O’Reilly, and now Mark Levin.
The methodology is known as the Cloward-Piven Strategy, and we can all be grateful to David Horowitz and his Discover the Networks for originally exposing and explaining it to us. He describes it as:
The strategy of forcing political change through orchestrated crisis. The “Cloward-Piven Strategy” seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.
Richard Cloward and Frances Fox Piven were two lifelong members of Democratic Socialists of America who taught sociology at Columbia University (Piven later went on to City University of New York). In a May 1966 Nation magazine article titled “The Weight of the Poor,” they outlined their strategy, proposing to use grassroots radical organizations to push ever more strident demands for public services at all levels of government.
The result, they predicted, would be “a profound financial and political crisis” that would unleash “powerful forces … for major economic reform at the national level.”
They implemented the strategy by creating a succession of radical organizations, most notable among them the Association of Community Organizations for Reform Now (ACORN), with the help of veteran organizer Wade Rathke. Their crowning achievement was the “Motor Voter” act, signed into law by Bill Clinton in 1993 with Cloward and Piven standing behind him.