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  • From: Don Bowen KI6DIU <don.bowen AT earthlink.net>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Teamsters endorse Obama
  • Date: Sun, 24 Feb 2008 19:09:33 -0800

At 2/22/2008, you wrote:
We had the illusion of a balanced budget because of the tech stock bubble.
Once the illusion of the bubble burst, there went the balanced budget, or
rather, the illusion of a balanced budget.

We had the illusion of a balanced budget because no one reports the Unified budget. This is the budget flow that includes payments to the Social Security trust fund, currently about $335B. For example the current joke of a budget submitted by the current administration dumps a publicly acknowledged deficient of $400B on the next president. Throw in the Social Security payments and the deficient is over $740B. That has been going on since Greenspan and Bush 1.

The way it works is that Social Security monies in excess of current needs is placed in "Special" government bonds. That flow is currently about $335B a year but may decline as the economy slows. The income from those bonds is treated as revenue, not borrowed funds. That is one major reason Bush 2 was so eager to privatize Social Security, when those bonds come due, massive tax increases will be needed unless the US government defaults.



Don Bowen Awl Knotted Up KI6DIU
http://www.braingarage.com




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