IS THIS THE STUPIDEST THING SHRUB HAS EVER SAID?

[leveymg]

IS THIS THE STUPIDEST THING SHRUB HAS EVER SAID?

In his Social Security road show, President George W. Bush stated that the U.S. Treasury bonds held by the Social Security trust fund are "worthless." The Associated Press carried the following report:

http://www.whotv.com/Global/story.asp?S=3166848

WHITE HOUSE Explaining why Social Security is in dire straits, President Bush has warned more than once that there is no Social Security trust fund.

Today, he's visiting a federal building in West Virginia to explain what he meant.

That building -- the Bureau of the Public Debt in Parkersburg -- contains a file cabinet filled with I-O-Us. It's all that's left after Uncle Sam takes Social Security's payroll tax money and converts it into 15-year bonds.

Bush insists the system is pay-as-you-go -- meaning the surpluses of prior years don't really exist, and Social Security can only pay benefits while payroll taxes are rolling in. But starting in 12 years, more will go out than comes in, according to the system's trustees.

The president's critics say the bonds are as solid as any other federal paper -- and help mask the multi (b) billion dollar deficits Bush has run up.

This raises the question:

What would happen if the holders of U.S. Treasuries took W seriously? We'd be stuck paying out over four trillion USD in foreign IOUs.



CONSIDER THE FOLLOWING: Over time, the Asian exporting countries have been placing a big percentage of their exchange earnings into US Treasuries. The leader continues to be Japan, with China now the #2 foreign holder of US debt.

Reportedly, China is shifting its portfolio away from US investments, which include billions in real estate trusts and Federally backed loans. Fannie Mae and Freddie Mac are the focus of major accounting scandals, and the former lost five percent of its value Monday.

http://www.forbes.com/home/feeds/ap/2005/04/04/ap1923108.html


04.04.2005, 12:47 PM

Shares of Fannie Mae tumbled Monday to their lowest intraday level in more than 10 years on a report that the mortgage financing company's chief regulator is looking into possible improper accounting of trusts it uses to sell mortgage-backed debt.

Shares of Fannie Mae, a government-sponsored entity that buys mortgages from banks and then repackages and sells them as bonds called mortgage-backed securities, fell $2.68, or 5 percent, to $50.56 in midday trading, and was one of the New York Stock Exchange's biggest percentage losers and most active issues. The stock dropped to a new 52-week low of $49.75 earlier in the day, down about 30 percent since early January.




THE SAUDIS HAVE FLED U.S. BONDS

The Saudis and other Gulf oil exporters bailed out of U.S. Treasuries a long time ago, and aren't even on the list anymore.

http://www.msnbc.msn.com/id/7294906 /

Who holds U.S. Treasury securities as of January, 2005

Amount in billions $ Percentage of foreign-held Treasury debt (central banks)
Japan 701.6 36%
Mainland China 194.5 10%
United Kingdom 163 8%
Caribbean Banking Centers* 92.5 5%
Korea 67.7 3%


*Bahamas, Bermuda, Cayman Islands, et al.
(Source: US TREASURY DEPT)
--------------------------------------------------------------



AND, LOOK WHERE THINGS STOOD TWENTY YEARS AGO:

http://www.treas.gov/tic/shl94sum.html

Table 5

Foreign Portfolio Investment in Long-Term Securities

Top 10 Investing Countries

(Amounts in $ Billions)

Country
1978
1984
1989
1994

Japan
12
28
180
230

United Kingdom
13
43
108
168

Germany
9
30
58
68

Canada
8
22
69
58

Switzerland
13
22
35
57

Middle East Oil Exporters
19
45
54
45

British West Indies
‘*’
2
7
37

Taiwan
‘*’
‘*’
13
35

Singapore
‘*’
6
13
34

Belgium
N.A.
N.A.
N.A.
32

Rest of World
-
-
-
319

Unknown
‘*’
7
122
161

Total
99
268
847
1,244


Note: N.A. means no data is available

‘*’. means greater than zero but less than the minimum amount presented in the table

As can be seen, Japan and the United Kingdom have maintained their positions as the top portfolio investing countries in U.S. securities. However, the rate of growth for Japan has decreased significantly. Between 1984 and 1989, Japanese holdings increased from $28 billion to $180 billion, or over 500%. Between 1989 and 1994 their holdings increased by only 28%.

On the other hand, holdings of the Middle East Oil Exporting countries (Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) decreased from $54 billion to $45 billion. In 1984, these countries together held 17% of foreign holdings of U.S. long-term securities. By 1994, their holdings represented less than 4% of the total held by foreigners.

The Unknown line is largely Eurobonds held in bearer form for which no ownership information is available. The level of Eurobond holdings have increased significantly since the 1984 survey as the size and importance of the Eurobond market has increased.

----------------------------------------------------------------------------------------------------------------------------------------------------

THAT GIANT POPPING SOUND YOU JUST HEARD WAS THE U.S. REAL ESTATE BUBBLE.


And, one final thing. The value of Home Depot, a stock that has ridden the American housing valuations boom, has tumbled.

The days of cheap and easy home equity credit just ended.

Add this to skyrocketing energy costs, and we have a prescription for one hell of a long, hot American summer.

This would be the time that BushCo introduces its favorite randomizer -- war -- in hopes of distracting us and reshuffling the political deck. I'd bet anything on it.

:bounce:

[BlueEyedSon]

1. Gosh, I hope Japan, China, etc are not LISTENING!

[liberal N proud]

2. Cash any bonds you have NOW!

before the rest of the world figures out what the * is saying.

[Champion Jack]

3. great post!

nt

[lonestarnot]

4. we doomed levymg....we doomed! n/t

[Sparkly]

5. Holy smokes!!

Excellent post!! :scared:

[Mr_Spock]

6. They are destroying our country due to STUPIDITY & BIGOTRY!!!!!!!!!!!!!!!!

How much more of this insanity will be have to endure

[KaliTracy]

21. perhaps they are doing it on purpose... n/t

[Mr_Spock]

25. Ya think?

:rofl:

[KaliTracy]

27. ummm.... in a word (ok... 2.....)

[MrScorpio]

7. It's a lock

He's bent on bankrupting the country

[CrispyQ]

24. I agree with you.

And so does this guy. Stages 11 & 12 are little out there, but it's a good read:


http://fixco1.com/bushplan.html

snip...
...I have developed a theory that I call "The Republican's Secret Sinister Plan" and I have come up with thirteen stages that I believe are being followed by Bush and the Republicans in Congress. Following are the thirteen stages of "The Republican's Secret Sinister Plan" with a special note about a critical approaching stage:

Stage one is controlling the members of their own Republican Party.

Stage two is infiltrating, influencing, and manipulating the members of the Democratic Party.

Stage three is using the media to confuse and manipulate the American people to gain their support (votes).

Stage four is to monopolize and build existing wealth concentrations by shifting the tax burden from investors to workers, de-regulating businesses, and passing free trade deals.

Stage five is weaken the power of the federal government by selling off it's assets, limit it's revenues, and privatize it's operations.

Stage six is to weaken and ultimately dismantle the existing social safety net programs like Social Security, Medicare, Welfare, the minimum wage, the forty hour work week, unemployment benefits, etc.

Stage seven is to rig elections so they their candidate always wins despite how the American people really vote.

Stage eight is to weaken the value of the U.S. currency.

Stage nine, this is the approaching critical stage, is to bankrupt the federal and state governments so that their assets can be acquired for pennies on the dollar.

Stage ten is to divide the population of America between the "haves" (10%) and the "have-nots" (90%) and drive the "have-nots" out of America using any means necessary.

Stage eleven is to reduce the population of the earth by 90% in an effort to limit global warming and to conserve earth's limited resources.

Stage twelve is to replace human workers with smart robot workers.

Stage thirteen is to throw a big party for the 10% of the population that gets to live in the "New World Order".

In order for this plan to succeed the America people must be keep in the dark about the true face of the Republican Party until the critical bankrupt stage, stage nine, has been completed. Once the American government assets are gone the American people will have lost their democracy and there is no way to gain it back.
=====

Privatize the commons & bankrupt the treasury. Bushco will pretty much 'own' everything that all our families have worked hard for over the last 2 centuries.

[indepat]

8. Not the stupidest, but one of the most honest things GWB has ever said

IMHO, because Repugs have no intention of every paying off those IOUs: to wit, they will never allow SS outlays to exceed SS revenues. But do not worry and fear not, for the aggregate face value of all those worthless IOUs now repose as part of the wealth of the most affluent who have paid far less of their income in taxes to the Federal government since 1981 (except for 1993-2001) than most of the middle of the middle-class who will receive greatly reduced SS benefits and a very negative return on the SS taxes paid. We truly get the government we so richly deserve.

[Yupster]

11. Agree Indepat

There is no intention of ever honoring the bonds in the trust fund.

I believe the way it will be done is to switch to a "unified budget" form of government accounting.

With that the social security trust fund will be merged with the general budget and the social security payments will become an obligation of the general budget.

With that simple accounting change, the trillions of dollars of IOU's will just disappear since an organization can't owe money to itself.

Then the congress will change the benefit formulas to adjust the inflow with outflow.

Everything will be fine, except the payments will be lower, and the trillions supposedly put in a trust fund will be officially looted.

When this happens, remember you herd it here first. It will happen around 2017.

[dogonarug]

18. And all it took...

Ultimately, was the stupidest president ever to make the stupidest public comments about US bonds to gut the US treasury and bond markets.
Purposeful idiocy...or evil genius? redundant argument to be heard around the trashcan fires of slum camps for generations to come.

[Marnieworld]

29. I think the longing to be dictator was pretty honest

The whole celebration of hitting the trifecta was another honest moment.
I also recall him saying at the end of 2001 that "it was a very good year" for him and Laura. Wasn't that nice?

[indepat]

37. The people and media never got a clue as to what W was conveying

with the trifecta remarks: oh lucky we the people.

[Roland99]

9. Did the Propagandist give his oil buddies some inside info?

Why is the Middle East at 0%?

[mopinko]

10. just amazing

how's he gonna finance his wars?
i vaguely remember that there is a law against "disparaging the full faith and credit of the u.s." or something like that.
treason?

[inchhigh]

12. "This would be the time that BushCo introduces its favorite

randomizer -- war -- in hopes of distracting us and reshuffling the political deck. I'd bet anything on it."

Unfortunately, I think we as a country have ALREADY bet EVERYTHING on it and the die has been cast. Now we're just waiting to see if it comes up craps.

[leveymg]

16. You mean Iraq? That's over. On to the next event.

June skies over Bushehr. Please read:

http://www.scoop.co.nz/stories/HL0410/S00146.htm

The Saudi Princes are scarcely more fond of Shi'a Iran than is Likuud.

[DoYouEverWonder]

13. Isn't it treason

when someone does everything that he possibly can to destroy our country and the economy?

[ihaveaquestion]

14. WHAT A STUPID STUPID ASS HE IS !!!!!!

Last night I watched "Unconstitutional" at Eckerd College which is on an ACLU/Amnesty Intl. tour with Bob Barr. As I was watching the clips of Bush, I realized that I'm developing a strong visceral hatred of his image. Something in the pit of my stomach turned over and I just wanted to vomit. :puke:

[quaoar]

15. The 14th Amendment, Section 4 states:

Section. 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

[leveymg]

17. Add that to the list of indictable offenses.

Who wants to go to a warrant service party? What would they do if 500,000 of us showed up in DC waving copies of the arrest warrants?




:) :-) x( :-( :( ;-) ;) :o :D }( ;( :P :9 :* :* :+ :7 B-) O8) :evilfrown: :evilgrin: :hippie: :party: :bounce: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :eyes: :smoke: :think: :hide:

[smoogatz]

19. Hmm. Sounds like an impeachable offense to me.

That pensions provision would appear to nail it right on the head, in fact. But of course there's that little known clause that says the WORST thing a President can do is be a Democrat and get a few blowjobs; other than that, pretty much everything goes.

[yodermon]

33. This bears repeating, and in a large font.

U.S Constitution, 14th Amendment, Section 4:

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

[smoogatz]

20. What are the permissible grounds for citizen's arrest?

Bush is a traitor, and should be tried for treason. Among other things.

[leveymg]

22. If it's in the statute book, it's grounds. n/t

Let's start with the 9/11 related charges: 3,000 counts of negligent homicide, obstruction of justice, perjury . . . Please see: http://www.scoop.co.nz/stories/HL0302/S00079.htm

[Catamount]

30. I have often wondered that myself! n/t

[sandnsea]

23. “assets that the government can't take away”

That's the stupidest thing he's said. He's out and out saying the Republican Party is going to stiff the American people out of $1.9 trillion of FICA taxes. The Deadbeat Dad party.

http://www.lightupthedarkness.org/blog/default.asp?view=plink&id=672

[mattclearing]

26. I don't think it's dumb at all.

It's like a moment of stupefying honesty. Bear with me.

He is simply saying that America has bad credit.

Bad credit with its people, and by extension, bad credit with the world.

The American dollar's worth, at least since we left the gold standard, is predicated on the faith of the stakeholders involved, namely American citizens and those who hold American debt.

Our debt, our foreign policy, and our trade deficit all drag the dollar down.

An econ professor used to say that the dollar is like a share of stock in the United States.

That is a pretty good analogy, and should tell you everything you need to know about why its price is dropping.

[watercolors]

28. stupid is as stupid does!

I think the people of this country have a higher IQ than *! Most of the people realize the stupity of his photo opp today, realize how funny his remarks were at the Bureau of public debt.My husband was just beside himslf with laughter, how dump is that man, he kept saying.

[melissinha]

31. Sell those worthless bonds to Franken

Al Franken has a standing offer... if anyone wants to get rid of their "worthless bonds"... he will buy them for 10 cents on the dollar.. if they are truly worthless... put your money where your mouth is!!!

[Zynx]

32. You can't default on some bonds and not on others.

He's saying those bonds aren't worth the paper they're written on.

[Yupster]

35. No one ever will default on the bonds

They will just be folded into the general budget and become obligations of the US treasury like any other promises the law makes.

That way the bonds won't be defaulted. They will just disappear.

Then the congress can change the benefit formula to make outgos and inflows match, and voila, the couple trillion dollars will be officially and legally looted.

[tavalon]

34. Yeah, it's really, really stupid

but there really are so many to choose from. Everytime that idiot goes unscripted, he spews stupid statements.

[Lisa]

36. so the piehole effect isn't good enough for him?

Is he TRYING to sabotage the economy?