Deficit Commission Co-Chair: Social Security T-Bills Have "Been Used"

By Dave Johnson

Created 06/18/2010 - 10:50am

t's astonishing, watch the video to see Alan Simpson, Co-Chair of the National Commission on Fiscal Responsibility and Reform ("Deficit Commission") explain that buyers of US T-Bills don't necessarily need to get paid back because the money has "been used"!

Background: In the 1980s the Social Security payroll tax was increased, supposedly to set aside funds to cover the retirement of the post-WWII baby-boomer generation. But this extra revenue was instead used to give huge tax cuts to the wealthiest Americans. (Yes, that's right, they taxed working people and used the money to cut taxes for the rich.) So now that the boomers are retiring the money is needed. They want those bonds paid back now to cover Social Security payments.

The Commission: Now there is the Deficit Commission looking into how to raise money to cover what the government handed out as tax cuts to the rich. Rather than get the money from where the money went, the plutocrats are instead trying to convince people that it would make more sense to just cut Social Security instead, so they don't have to pay it back. The commission is meeting in secret, preparing to recommend cutting Social Security benefits. Hence the nickname for the Commission: "Catfood Commission," because cutting Social Security would force as many as 1.5 million old people into poverty and eating cat food for dinner because it costs less.