Repeal PRWORA Project
OLD AGE MONTHLY RETIREMENT INCOME BENEFIT IS A HUMAN RIGHT
At the Headquarters Establishment No. 22 also known as Special Frontier Force, I served to defend the Human Rights of men who are neither citizens nor refugees of the United States which employed us. For that reason, I examine the Human Rights of workers who work in the United States without being citizens or refugees.
The most important characteristic of Labor is that it consumes time while the man performing Labor experiences the relentless aging process without any concern for his nationality status. Providing income security in Old Age is a humanitarian concern for it defends the human dignity of all people who suffer from the inevitable consequences of the eternal Law of Aging.
Having served the US exposing my life to extreme risk of premature death, I must expose ‘The Clinton Curse’ that endangers the lives of all the US residents irrespective of their Nationality Status.
President Bill Clinton’s Slavery Mandate of 1996 constitutes disobedience of LORD’s Commandment to choose Life and to avoid the danger of eternal Death.
Undocumented immigrants pay billions of dollars in federal taxes each year
© Alexia Fernández Campbell/Vox Earvin Gonzalez assists an undocumented taxpayer in suburban Washington, D.C.
One of the biggest misconceptions about undocumented immigrants is that they don’t pay any taxes. In his first address to Congress, President Trump set the tone for his coming immigration agenda when he said immigration costs US taxpayers “billions of dollars a year.”
A 2017 Gallup poll that asked survey respondents “whether immigrants to the United States are making the [tax] situation in the country better or worse” found that 41 percent said, “worse,” while only 23 percent said “better” (33 percent said they had “no effect”).
The reality is far different. Immigrants who are authorized to work in the United States pay the same taxes as US citizens. And, contrary to the persistent myth, undocumented immigrants do in fact pay taxes too. Millions of undocumented immigrants file tax returns each year, and they are paying taxes for benefits they can’t even use.
The best estimates come from research by the Institute of Taxation and Economic Policy, a Washington, DC, think tank, which suggests that about half of undocumented workers in the United States file income tax returns. The most recent IRS data, from 2015, shows that the agency received 4.4 million income tax returns from workers who don’t have Social Security numbers, which includes a large number of undocumented immigrants. That year, they paid $23.6 billion in income taxes.
· Those undocumented workers paid taxes for benefits they can’t even use, like Social Security and Medicare. They also aren’t eligible for benefits like the earned income tax credit. But the IRS still expects unauthorized immigrants to file their taxes, and many of them do so.
Filing taxes helps immigrants create a paper trail to show when they entered the country and how long they’ve been contributing tax dollars. Many are hoping it will help them get legal status one day. That has happened in past reform efforts, and one of the first requirements is usually to prove that a person has been paying taxes. That was the case for the undocumented youth granted temporary work permits under President Obama’s deportation relief program, known as DACA.
· So, despite all the political rhetoric, undocumented immigrants are not a drain or burden on the government.
How unauthorized immigrants pay their taxes
In April 2017, I visited Casa de Maryland in Rockville, Maryland, which hosts two federally subsidized centers where low-income workers can file their taxes for free. That year, they had helped about 200 undocumented immigrants file their taxes, and many were waiting in line with their paperwork when I stopped by.
I watched tax preparer Earvin Gonzalez go through the process of helping undocumented immigrants file their taxes. Maria, whose last name is being withheld because of her immigration status, handed him a folder with tax documents from two jobs. Her W-2 showed that a housecleaning company paid her $17,288 in 2015.
As Gonzalez filled out her information in a computer software program, a green box popped up on the computer screen: “Taxpayer’s Social Security number is not valid.”
· That wasn’t a surprise. The 36-year-old woman from El Salvador is undocumented, and she told me that she made up the Social Security number on the W-2 form because she doesn’t have one. Her employer never asked for identification to verify it, she says. Instead, she has an Individual Taxpayer Identification Number (ITIN), created by the IRS in 1996 so people who aren’t allowed to work in the United States could still file taxes on any income they earned. (The IRS does not share ITIN information with immigration authorities.)
Maria said she applied for an ITIN number shortly after arriving illegally in the United States from El Salvador in 2009. People told her that having a record of paying taxes would help her with her case to gain legal status if immigration reform happened.
Comprehensive immigration reform failed in Congress, but Maria is still paying her taxes every year. “I think it’s important, and all my relatives pay their taxes too,” she told me.
· Last year, her tax documents also included two 1099 forms, for her second job as a contractor.
“What kind of jobs were these?” Gonzalez asked her in Spanish.
“After cleaning houses, I would go lay concrete in parking lots,” she said.
Those two jobs brought in a total of $24,845 last year, and Maria still needed to pay taxes on that income. Gonzalez entered some deductions, such as the $1,500 she spent on equipment to pour and level concrete and the 12,000 miles she drove between job sites. Maria, who is a single mom, claimed two dependents: her 16-year-old son and 13-year-old daughter. With her ITIN number, she was able to claim child tax credits, but not the earned income tax credit, the major federal tax credit for low-income working families.
· In the end, Maria owed $1,131 in income taxes to the state of Maryland and $775 to the federal government. She said she had some money saved up because she knew she would have a tax bill at the end of the year from the contracting jobs. But she said she will probably get on a payment plan with the IRS. If Maria had qualified for the earned income tax credit, her tax bill would probably have been about $500 lower.
Unauthorized immigrants boost funding for the Social Security system
It’s true that not all undocumented immigrants pay federal income taxes, because the government has no way to keep track of their under-the-table earnings. The IRS can withhold taxes from those hired with fake Social Security numbers, but workers who get paid in cash could simply choose not to report it, unless they voluntarily file a return with an ITIN number.
Still, all undocumented workers fund public schools and local government services by paying sales and property taxes like everyone else. The Institute on Taxation and Economic Policy estimates that they pay about $11.7 billion a year in state and local taxes.
And workers who get a paycheck, like Maria, still have payroll taxes for Medicare and Social Security withheld from their paycheck, even if they put a fake Social Security number on their W-2 form. The IRS estimates that unauthorized workers pay about $9 billion in payroll taxes annually.
In Maria’s case, the W-2 form showed that she paid $1,072 into Social Security and $251 into Medicare, two social safety net programs she may never benefit from.
A portion of the payroll tax withheld from undocumented immigrants — like all workers — goes to the retirement trust fund at the Social Security Administration. In 2013, the agency reviewed how much money undocumented workers contributed to the retirement trust fund. The number was astonishing: $13 billion in one year.
The chief actuary of the Social Security Administration, Stephen Goss, estimates that about 1.8 million immigrants were working with fake or stolen Social Security cards in 2010, and he expects that number to reach 3.4 million by 2040.
“We estimate that earnings by unauthorized immigrants result in a net positive effect on Social Security financial status generally,” Goss concluded in the 2013 review.
These numbers are a stark contrast to the often repeated rhetoric that undocumented immigrants are a drain on the US economy. Even most Americans seem to think so — in a 2014 Reuters poll, 63 percent of people surveyed said they believe undocumented immigrants burdened the economy.
Emiliano, a 57-year-old undocumented day laborer from Honduras, told me that he knows many people assume he doesn’t pay his taxes. He doesn’t care. He just hopes one day it will help him get legal status.
When I told him the chances don’t look good under the Trump administration, he shrugged.
“You have to have hope in something,” he said.
SOCIAL SECURITY ADMINISTRATION – NOTICE OF SLAVERY AWARD ON OCTOBER 18, 2018
Social Security Administration, Great Lakes Program Service Center, Chicago wields its long baseball bat to hit the Septuagenarian Senior Alien with its Notice of Slavery Award on October 18, 2018.
Social Security Administration writes to Senior Alien to inform:
“What You Should Know
We changed your monthly benefit to $1,605.20 as of January 2018. We found that your prior amount was incorrect.
We cannot pay you monthly benefits at this time.
We changed your benefit amount to give you credit for your 2017 earnings. We did not include these earnings when we figured your benefit amount before.”
It reminds me of the ‘Curse’ uttered by LORD God Creator in the Book of Genesis, Chapter 3, verses 17 to 19:
In my analysis, it is very easy to punish the Senior Alien by simply withholding his monthly retirement income benefit payment and force him to live the rest of his life through painful toil. I remind my readers to give attention to God’s pronouncement. The ground is “Cursed” to produce thorns and thistles for the Senior Alien as well as all the others who depend on the ground for their living.
SOCIAL SECURITY ADMINISTRATION – NOTICE OF SLAVERY AWARD
SOCIAL SECURITY ADMINISTRATION – GREAT LAKES PROGRAM SERVICE CENTER – HAROLD WASHINGTON SOCIAL SECURITY CENTER – NOTICE OF SLAVERY AWARD:
· #CardPlayingDay :
GREAT LAKES PROGRAM SERVICE CENTER – HAROLD WASHINGTON SOCIAL SECURITY CENTER – NOTICE OF SLAVERY AWARD: #CARDPLAYINGDAY FOR RETIREMENT INSURANCE BENEFIT, WHO IS HOLDING THE CARDS??? WHO IS PLAYING THE GAME??? WHAT ARE THE RIGHTS OF SUBSCRIBER TO PLAY THE CARD GAME???
I want to tell my readers that the purpose of this article is not that of blaming any person who serves in the Social Security Administration(SSA). I truly appreciate their service and their contributions to the country and to the community.
It must be recognized that SSA has to perform its functions using the rules and regulations formulated by the applicable US laws passed by the US Congress. Ultimately, the problems reported in this article can only be resolved if the US Congress reviews the 1996 amendment to the Social Security Act of 1935.
This article pertains to the Senior Alien (#SeniorAlien) who received his Medicare Card with Medicare coverage effective from 07-01-2013.
On October 13, 2016, SSA informed the Senior Alien of his Social Security Benefits. His claim for Monthly Retirement Benefit changed to $1,508.60 as of January 2016. But, Social Security Administration cannot pay him his Monthly Benefits.
GREAT LAKES PROGRAM SERVICE CENTER – NOTICE OF SLAVERY AWARD: HAROLD WASHINGTON SOCIAL SECURITY CENTER, CHICAGO GETS UNIQUE PLACE OF DISTINCTION IN THE US HISTORY FOR ITS NOTICE OF AWARD, DATE. OCTOBER 13, 2016 AND AUGUST 16, 2014 OVERTURNED PRESIDENT ABRAHAM LINCOLN’S EMANCIPATION PROCLAMATION THAT ABOLISHED SLAVERY IN THE UNITED STATES. THIS DECISION VIOLATES THE US CONSTITUTION’S 13TH AMENDMENT.
GREAT LAKES PROGRAM SERVICE CENTER – NOTICE OF SLAVERY AWARD: THE NOTICE OF AWARD DATED OCTOBER 13, 2016 REVISED THE DECISION SENT ON AUGUST 16, 2014. BOTH IMPOSE SLAVERY, INVOLUNTARY SERVITUDE, AND FORCED LABOR AS DEFINED BY THE PROVISIONS CONTAINED IN CHAPTER 77, TITLE 18 OF THE US CODE, SECTIONS, 1581, 1584, AND 1589 AND VIOLATES THE US CONSTITUTION’S 13TH AMENDMENT.
The word ‘DECISION’ is defined as the act of deciding a question or a claim by giving a judgment; it is a conclusion made with the firmness of mind, and it describes a determination reached or given. Social Security Administration, Great Lakes Program Service Center made a “DECISION” and sent a Notice of Award on October 13, 2016, which applied a change to its earlier Decision on August 16, 2014. This could be a very historical decision for it overturns the Emancipation Proclamation made by the US President Abraham Lincoln to abolish Slavery in the United States.
GREAT LAKES PROGRAM SERVICE CENTER – NOTICE OF SLAVERY AWARD: THE NOTICE OF AWARD, DATE. OCTOBER 13, 2016 AND EARLIER NOTICE ON AUGUST 16, 2014 COMMUNICATE A DECISION MADE BY SOCIAL SECURITY ADMINISTRATION. THE IMMEDIATE CONSEQUENCE OF THE DECISION IS THAT OF FORCING, COMPELLING, COERCING A SENIOR ALIEN TO PERFORM LABOR AGAINST HIS WILL BY CREATING “CLIMATE OF FEAR.” IT MUST BE NOTED THAT THE SENIOR ALIEN IS ISSUED A MEDICARE CARD AND THE MEDICARE COVERAGE IS EFFECTIVE FROM 07-01-2013. THE DECISION VIOLATES THE US CONSTITUTION’S 13TH AMENDMENT.
The Notice of Award communicated the ‘Decision’, the Determination, or Conclusion reached by Social Security Administration(SSA), Great Lakes Program Service Center, Harold Washington Social Security Center, 600 West Madison Street, Chicago IL 60661-2474 on August 16, 2014, and a Revised Decision on October 13, 2016.
1. The Decision has approved the applicant’s Claim for Retirement Benefit and the entitlement date is given as October 2014. It further added the applicant’s current monthly benefit rate of $1347.80 is changed to $1,508.60 as of January 2016. SSA issued a Medicare Card to the Senior Alien and the Medicare coverage is effective from 07-01-2013. However, the Decision is silent or mute for it has not shared any fact or information that has guided the Decision-making process and it fails to establish the legal basis and information that shaped this judgment. For reasons of fairness, clarity and to ensure the practice of the principle called ‘Equal Protection Under Law’, the Decision must explain the legal basis for this approval. The Decision must disclose the US Law that may provide the authority or sanctioning power to arrive at the Decision that grants the approval of the Claim for Social Security Retirement Insurance Benefit.
2. The Part-2 of the above Decision states that the Department cannot pay the monthly benefit of the Retirement Insurance. It must be noted that the Social Security Retirement Insurance Plan stands on the support of two pillars;
These are 1. The Contributions made by the Employee and his Employer as mandated by the Federal Insurance Contributions Act or FICA, and 2. The Age of the Plan Subscriber for the subscriber is paid monthly benefit after attaining a predetermined qualifying age called the ‘full retirement age’.
All employees working in the US are required by the Federal Law to subscribe to this SSA Retirement Insurance with or without immigration status. For example, US citizen who may not have earned enough ‘Credits’ and who may not have reached the qualifying age( currently at 66-years), is not eligible to apply for this Retirement Benefit. The Rules for ‘Lawful Presence’ or of ‘Immigrant Status’ do not establish the eligibility criteria to subscribe and contribute to the Social Security Public Trust Fund. These Rules for Lawful Presence in the US make the distinction between US citizens and others residing in the US performing work to earn their hourly wages.
SOCIAL SECURITY ADMINISTRATION – NOTICE OF SLAVERY AWARD. BEHOLD THE MAN. JOHN 19:5. SOCIAL SECURITY IMPOSES SLAVERY, SERFDOM, AND INVOLUNTARY SERVITUDE VIOLATING RIGHT TO LIFE AND FREEDOM.
GREAT LAKES PROGRAM SERVICE CENTER – THE NOTICE OF SLAVERY AWARD: SOCIAL SECURITY ADMINISTRATION MAKES DECISION ON AUGUST 16, 2014 AND OCTOBER 13, 2016 TO LEGALLY IMPOSE BURDEN OF INVOLUNTARY SERVITUDE ON SENIOR ALIEN WHO IS NOT A CONVICTED FELON. SENIOR ALIEN WAS ISSUED MEDICARE CARD AND MEDICARE COVERAGE EFFECTIVE FROM JULY 01, 2014. BUT, SUSPENDS PAYMENT OF MONTHLY RETIREMENT INCOME BENEFIT.
I am asking my readers to behold the Senior Alien who has to live and experience consequences of the Notice of Award sent by Great Lakes Program Service Center – Harold Washington Social Security Center.
A number of provisions in the US Code target the problems of Involuntary Servitude, Slavery, and Forced Labor. These provisions are contained in Chapter 77 of Title 18. Section 1581 prohibits using force, the threat of force or the threat of legal coercion to compel a person to work against his/her will. Section 1584 of Title 18 makes it unlawful to hold a person in a condition of Slavery, that is a condition of compulsory service or labor against his/her will by use of actual force, threats of force, or threats of legal coercion. Section 1584 also prohibits compelling a person to work against his will by creating a “Climate of Fear” through the use of force, the threat of force, or the threat of legal coercion( i.e., if you don’t work, I’ll call the Immigration officials) which is sufficient to compel service against a person’s will. Section 1589 deals with Forced Labor and it broadens the definition of the kinds of coercion that might result in Forced Labor, whoever knowingly provides or obtains the labor or services of a person. 1. By threats of serious harm to or physical restraint against that person or another person, 2. By means of any scheme, plan, or pattern intended to cause the person to believe that if the person did not perform such labor or services, that person or another person would suffer serious harm or physical restraint; or 3. By means of the abuse or threatened abuse of Law or the Legal Process.
The Notice of Award violates the provisions contained in Chapter 77 of Title 18 US Code. By suspending Monthly Benefit Payments, Social Security Administration used the force of its authority to legally coerce Senior Alien to perform labor against his will if he desires to live in the US. The Decision ‘NOT’ to pay the Monthly Benefit creates a “Climate of Fear.”
The Senior Alien lives in the condition named Slavery for the Government Agency exercised power to withhold the Senior Alien’s property or financial assets invested in the Social Security Public Trust Fund. In other words, the Social Security Administration’s Notice of Award communicates a Decision causing the Demise of the Emancipation Proclamation abolishing Slavery in the US.
MONDAY, SEPTEMBER 03, 2018 – LABOR DAY MUSINGS – THE CLINTON CURSE DEFINES THE AMERICAN WORKPLACE
In the United States, Labor activists, and Labor Unions made great progress to defend the rights of Working Class. Unfortunately, President Bill Clinton undermined this progress by approving legislation that took away the dignity of unskilled, hourly wage earners who legally work in the US paying taxes. President Clinton on August 22, 1996, signed into Law, Public Law 104-193, ‘The Personal Responsibility and Work Opportunity Reconciliation Act’ (PRWORA) which places restrictions on the payments of monthly retirement income benefits to workers in the US under Title II of the Social Security Act. Refer to Section 401(b) (2) of PRWORA.
For many unskilled, hourly wage earners performing labor in the US, American Workplace is defined as Work until Death for they have no Retirement option. In other words, those who have no Retirement option, American Workplace is defined by the Book of Genesis, Chapter 3, verses 17 to 19.
I ask my readers to reflect upon the consequences of President Clinton’s actions on this Labor Day. Apart from alien workers, the ground gets cursed with consequences to all its denizens. The Clinton Curse compels Americans to live and work paying off their foreign debt. This nation lives on money borrowed from other nations.
SPECIAL FRONTIER FORCE
IN 1882, LABOR DAY ORIGINATED WITH A PARADE HELD IN NEW YORK CITY
Posted on Monday, September 04, 2017 by EMILY NONKO
An illustration of the first Labor Day parade, via Wiki Commons
Though Labor Day has been embraced as a national holiday–albeit one many Americans don’t know the history of–it originated right here in New York City. The holiday is a result of the city’s labor unions fighting for worker’s rights throughout the 1800’s. The event was first observed, unofficially, on Tuesday, September 5th, 1882, with thousands marching from City Hall up to Union Square. At the time, the New York Times considered the event to be unremarkable. But 135 years later, we celebrate Labor Day on the first Monday of every September as a tribute to all American workers. It’s also a good opportunity to recognize the hard-won accomplishments of New York unions to secure a better workplace for us today.
According to Untapped Cities, the holiday has its roots in a common 19th-century tradition in which laborers held picnics and parades to draw awareness to worker’s rights. Organized unions emerged from there, and New York City became a hotbed for labor activists by the Industrial Revolution of the 1880s.
View of South Street during the Industrial Revolution, via the Metropolitan Museum of New York
Back then, laborers were fighting against low wages, unfair hours, child labor and unsafe working environments. (Most workers at the time worked six days a week, 10 or 12 hours a day, and Sunday was the only day off. There were no paid vacations, no sick days and very few breaks during a day.) Two labor groups, the Knights of Labor and the Tailor’s Union, established a city-wide trade consortium–known as the Central Labor Union of New York, Brooklyn, and Jersey City, or the CLU–in January of 1882 to promote similar goals. They called for things like fair wages, an eight-hour workday and an end to child labor. The group also proposed that for one day a year, the country celebrates American workers with parades and celebrations. The CLU went ahead and organized the first parade for the September 5th of that year.
According to Brownstoner, two different men within the labor movement were credited for the parade. Matthew Maguire, a machinist, first proposed a holiday and parade in 1882. He was the secretary of the CLU. But that same year, Peter J. McGuire, co-founder of the American Federation of Labor, also proposed a parade. The debate between the original founder of Labor Day was never settled, though Matthew Maguire usually gets the credit.
The parade began outside City Hall, with the CLU advertising it as a display of the “strength and esprit de corps of the trade and labor organizations.” It was important to the event that the men gave up a day’s pay to partake in the festivities. And they did arrive in droves, with banners and signs with slogans like “NO MONEY MONOPOLY” and “LABOR BUILT THIS REPUBLIC AND LABOR SHALL RULE IT.”
No drinking was allowed at the parade, which featured everyone from the Jewelers Union of Newark to the typographical union, which was known as ‘The Big Six.’ Along the route, which passed Canal Street on its way to Union Square, hundreds of seamstresses hung out the windows cheering the procession, blowing kisses and waving their handkerchiefs. It’s said as many as 20,000 men marched that day.
The party after the marchers hit Union Square was celebratory, according to the New York history book Gotham. Here’s a passage from the book:
Finally, after passing by a reviewing stand filled with labor dignitaries, the participants adjourned, via the elevated, to an uptown picnic at Elm Park. There they danced to jigs by Irish fiddlers and pipers and were serenaded by the Bavarian Mountain Singers while the flags of Ireland, Germany, France, and the USA flapped in the autumn air.
Labor Day parade float in New York City, early 20th century, via New York Department of Labor
Labor parades began in other cities around the county, and for a while, the day was known as “the workingman’s holiday.” By 1886, several cities had an annual parade, with legislation in the works to make the day a state holiday. Though New York was the first state to introduce a bill to make the holiday official, Oregon was the first to actually pass it as law in 1887. New York quickly followed suit that same year, as did New Jersey, Massachusetts and Colorado.
Labor unions, of course, went on to secure rights like the eight-hour workday, collective bargaining, health insurance, retirement funds and better wages. These days, the holiday is better known as a marker to the end of summer than a celebration of the working class. But it’s a nice reminder such hard-fought battles, which brought accomplishments that now define the American workplace, took root in New York.
Tags: Labor Day
THE CLINTON CURSE – AMERICA’S FINANCIAL BONDAGE
“Think what you do when you run in debt,” said Benjamin Franklin, “You give another power over your liberty.” No man is truly free who is in financial bondage. To the same extent, no nation is truly free when it is in financial bondage.
President Clinton approved Public Law 143 – 193 to address the mounting problem of National Debt. To ‘Balance the Budget’, President Clinton imposed Slavery, Bondage, Servitude, Serfdom, and Forced Labor on aliens working in the United States paying Federal, State, Social Security, Medicare, and Local Taxes. His action is of no help. The US External Debt keeps growing compromising the freedom of Americans for the Debt gives power to other nations over American Liberty.
THE WORLD FACTBOOK – CENTRAL INTELLIGENCE AGENCY
THE CLINTON CURSE – CLINTON’S IMMORAL SOCIAL SECURITY POLICY
Social Security is the largest owner of the US Debt. In 1996, President Clinton amended the Social Security Act of 1945 by approving Public Law 104 – 193. President Clinton made an immoral choice to address the problem of mounting US Debt. His plan to reduce the US Debt by denying the payment of Old Age Retirement Income Benefits to senior alien workers has backfired. God has given His Promise. It delivers Blessings for the obedience of Commandments. Disobedience of God’s Commandments has consequences. The Clinton Curse reveals the consequences of President Clinton’s corrupt conduct. As of today, the US satisfies the government’s need for revenue by borrowing from foreign nations.
WHO OWNS THE MOST U.S. DEBT?
To satisfy the U.S. government’s need for revenue, Washington collects taxes and fees. What happens if this isn’t enough? What happens if the federal government needs more? That is the subject of this article in which we’ll reveal who owns the most U.S. debt and how much of it is owned by foreign nations. We’ll begin by explaining, in simple terms, how the debt market functions.
An individual takes on debt when they finance a new car, house, etc. The U.S. government does so when it issues securities. Specifically, the federal government issues Treasury bills, notes, and bonds. The primary difference is in their maturity. For example, Treasury bills have a maturity of less than one year. Treasury notes mature in one to ten years. Treasury bonds have maturities greater than 10 years.
To issue its debt, the government holds periodic Treasury auctions. A successful auction indicates a strong demand for U.S. Treasury securities. If the auction doesn’t go well, it means demand for Treasuries is weak. Who owns the most Treasury’s?
Owners of U.S. Debt
The largest owner of U.S. debt is Social Security. Since the Social Security system is a government entity, how can the government own its own debt? Good question. This is where the “house of cards” theory resides. Some believe the federal government is merely moving the IOUs from one shell to another, hoping to escape the watchful eye of its citizens. In any event, Social Security owns about 16% of the debt followed by other federal government entities (13%), and the Federal Reserve (12%). How much is owned by foreign governments? The following chart contains the answer.
According to the U.S. Treasury Department, at the end of August 2014, more than a third of the debt was owned by foreign countries (34.4%). The largest foreign holders of U.S. debts are Mainland China (7.2%) and Japan (7.0%). What is the consequence of having such a large percentage of debt held by foreign nations? It depends. It depends on the relationship between the U.S. and the specific foreign country. It also depends on the global interest rate environment. Finally, it depends on the geopolitical climate and the degree of fear around the globe. This is the case because when fear rises money flows into U.S. Treasuries which is viewed as a safe place to invest. The percentage of debt owned by countries that are less friendly to America is about 10%. This includes China, several oil exporters (Ecuador, Venezuela, Iran, Iraq, Libya, etc.), and a few others. The worst case would materialize if the largest holders decided to sell their Treasury securities at the same time. This could potentially decrease demand which would push yields higher. If yields rose, the federal government would find it more difficult to service the debt, pushing the deficit higher. If the deficit rose, the total debt burden would accelerate and, unless demand for U.S. debt was to increase, it could get ugly. Will this transpire? It’s not too likely. At least not for the foreseeable future anyway.
Given the state of the global markets, the U.S. is still considered to be the best house in a bad neighborhood. Even though more than one-third of the debt is owned by foreign nations, as long as there are no safer places to invest, money will find its way here. Therefore, global turmoil would be in the best interest of the federal government. Anything which raises fear will bring money to the Treasury and allay the need for higher taxes. However, one day this unsustainable path we’re on will reach its day of reckoning. However, that’s probably not any time soon.
THE CLINTON CURSE – THE US ECONOMY ON A SLIPPERY SLOPE
Antislavery Campaign of 2018 demands the Repeal of PRWORA of 1996 as it triggered ‘The Clinton Curse’ placing the US economy on a slippery slope. In my analysis, President Clinton did not Balance the US Budget for he acted in violation of God’s Commandments.
President Clinton missed the opportunity to save the country from foreign debt because he denied the payment of the Old Age Retirement Income and Health Insurance Benefits to alien workers who fully subscribed to the Social Security and Medicare Plans by paying the necessary taxes. To the same extent, ‘The Clinton Curse’ invites Americans to live their lives paying taxes to repay the foreign debt.
SPECIAL FRONTIER FORCE
How Bill Clinton’s Balanced Budget Destroyed The Economy – Business Insider
Bill Clinton is giving the keynote speech at the Democratic National Convention tonight.
The idea is to make people feel nostalgic for the last time when the economy was really booming, and hope that some of that rubs off on Obama.
However, in the New York Post, Charlie Gasparino uses the occasion to remind everyone that the seeds of our current economic malaise were planted during the Clinton years.
Basically, it was under Clinton that Fannie and Freddie really began blowing the housing bubble, issuing epic amounts of mortgage-backed debt.
The story that Gasparino tells is basically: Liberal Bill Clinton thought he could use government to make everyone a homeowner and so naturally this ended in disaster.
Gasparino specifically cites the controversial Community Reinvestment Act, a popular conservative bogeyman:
How did they do this? Through rigorous enforcement of housing mandates such as the Community Reinvestment Act, and by prodding mortgage giants Fannie Mae and Freddie Mac to make loans to people with lower credit scores (and to buy loans that had been made by banks and, later, “innovators” like Countrywide).
The Housing Department was Fannie and Freddie’s top regulator — and under Cuomo, the mortgage giants were forced to start ramping up programs to issue more subprime loans to the riskiest of borrowers.
That’s interesting. But the truth is far more complicated. And more interesting.
Clinton’s Budget Legacy
In addition to being remembered for a strong economy, Bill Clinton is remembered as the last President to preside over balanced budgets.
Given the salience of the national debt issue in American politics today, the surpluses are a major mark of pride for the former President (and arguably the entire country). They shouldn’t be.
“I think it is safe to say that we are still suffering the harmful effects of the Clinton budget surpluses,” says Stephanie Kelton, an economics professor at the University of Missouri Kansas City.
To understand why you first need to understand that the components of GDP look like this:
In the above equation, C is private consumption (spending). ‘I’ is investment spending. ‘G’ is government spending. And ‘X-M’ is exports-minus imports (essentially the trade surplus).
Here’s a chart of the government budget around the years during and right after Clinton, in case you need a reminder that the government was in surplus near the end of his tenure.
Business Insider, Bloomberg
If the government is in surplus, it means that the government is taking in more cash than it is spending, which is the opposite of stimulus.
It’s also well-known that the US trade deficit exploded during the late 90s, which means that ‘X-M’ was also a huge drag on GDP during his years.
Business Insider, Bloomberg
So the trade deficit was subtracting from GDP, and the government was sucking up more money from the private sector than it was pushing out.
There was only one “sector” of the economy left to compensate: Private consumption. And private consumption compensated for the drags from government and trade in two ways.
First, the household savings rate collapsed during the Clinton years.
Business Insider, Bloomberg
And even more ominously, household debt began to surge.
Business Insider, Bloomberg
So already you can see how the crisis started to germinate under Clinton.
As his trade and budget policies became a drag on the economy, households spent and went into debt like never before.
Economist Stephanie Kelton expounded further in an email to Business Insider:
“Now, you might ask, “What’s the matter with a negative private sector balance?”. We had that during the Clinton boom, and we had low inflation, decent growth and very low unemployment. The Goldilocks economy, as it was known. The great moderation. Again, few economists saw what was happening with any degree of clarity. My colleagues at the Levy Institute were not fooled. Wynne Godley wrote brilliant stuff during this period. While the CBO was predicting surpluses “as far as the eye can see” (15+ years in their forecasts), Wynne said it would never happen. He knew it couldn’t because the government could only run surpluses for 15+ years if the domestic private sector ran deficits for 15+ years. The CBO had it all wrong, and they had it wrong because they did not understand the implications of their forecast for the rest of the economy. The private sector cannot survive in negative territory. It cannot go on, year after year, spending more than its income. It is not like the US government. It cannot support rising indebtedness in perpetuity. It is not a currency issuer. Eventually, something will give. And when it does, the private sector will retrench, the economy will contract, and the government’s budget will move back into deficit.”
But this is only part of the story. What about what Charlie Gasparino wrote about above?
The Fannie and Freddie Boom
When the government is running a surplus, it no longer has to issue much debt. But risk-free government bonds are a crucial component of portfolios for all kinds of financial institutions, and for mom & pop investors who like the safety of regularly Treasury payouts. The yield on the 10-year bond was over 5% back in those days… nothing to sneeze at for people planning for a retirement.
This created a bit of a crisis.
Bond trader Kevin Ferry, a veteran of the scene, told Business Insider about the panic that was unfolding over the government’s lack of debt.
“OMG, they were all saying… there wasn’t going to be any paper!”
How did the markets react?
“Lo and behold… [Fannie and Freddie] issuance “SURGED” in the late 90s,” said Ferry.
Everything changed. While the government dramatically slowed down the issuance of Treasuries, Fannie and Freddie picked up the baton and started selling debt like never before.
“Prior to those years, there were not regular [Fannie and Freddie] auctions.”
“The system wanted it.”
“The fear was that there wasn’t going to be any…. There were no bill auctions.”
“The brokers were calling up ma & pa and said there are no more T-Bill auctions!”
And the data bears this out.
Total agency issuance of mortgage-backed securities spiked in 1998 and 1999, and from then on they never looked back.
Business Insider, Bloomberg
And just to drive home the point again, about how the 1998-1999 spike in issuance was the mirror image of the annual change in the size of the government debt.
Note that both government debt and agency issuance spiked in the early 2000s, but that was during a recession when the private sector dramatically scaled back its activity form the late 90s.
How Clinton Destroyed The Economy
The bottom line is that the signature achievement of the Clinton years (the surplus) turns out to have been a deep negative. For this drag on GDP was being counterbalanced by low household savings, high household debt, and the real revving up of the Fannie and Freddie debt boom that had a major hand in fueling the boom that ultimately led to the downfall of the economy.
And that brings up a broader question that people who advocate balanced budgets must answer.
What’s the point of it?
Despite the budget surplus, interest rates were higher. And the surplus provided no protection of the coming slump. And if anything, it just weakened the most brittle part of the economy: households.
Furthermore, there is a pattern of this.
Japan ran a budget surplus in the year right before its economy went into terminal decline, as this chart from Trading Economics shows
So while Clinton will be remembered nostalgically tonight, for both the performance of the economy and his government finances, they shouldn’t be remembered fondly.
THE CLINTON CURSE – WHY THE UNITED STATES FAILED ON AUGUST 22, 1996?
The Campaign to Repeal the Welfare Reform Act of 1996 is not about giving citizenship rights to non-citizens. It is about upholding the Supreme Law of the Land to abolish bondage, servitude, and slavery. The Reconstruction of America is not yet over. Slavery re-appeared in this Land in a new form and remains hidden or unnoticed. ‘The Clinton Curse’ explains as to why the United States failed on August 22, 1996. The Curse reveals the nature of The Beast that is waiting to overtake this nation.
THE CLINTON CURSE – THE BEAST IS WAITING TO OVERTAKE THE UNITED STATES
WHERE IS PROTECTION FOR MAN DURING GOLDEN YEARS OF HIS LIFE? HOW TO SURVIVE THE CLINTON CURSE?
THE GREAT AWAKENING MOVEMENT – SPIRITUAL WARFARE AGAINST THE CLINTON CURSE
A NEW BEGINNING IN AUGUST 1996 TO BALANCE THE BUDGET – RECOGNIZE REALITY OF THE CLINTON CURSE
PRESIDENT CLINTON’S NEW BEGINNING IN 1996.
ECONOMIC OPPRESSION OF ALIEN WORKERS
On August 22, 1996, US President Bill Clinton (Democrat) signed into Law that reintroduced Slavery, Involuntary Servitude, Serfdom and Forced Labor in the pretext of making ‘A New Beginning’. Welfare Reform Act or Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) is unjust and unfair for it violates Constitutional Law that defends natural rights of all people living in United States. All US taxpayers must be treated as equals for receiving retirement income benefits for which they paid taxes. President Clinton’s action constitutes a transgression of President Abraham Lincoln’s Emancipation Proclamation that saved US Non-Citizens or Aliens from the indignity of Slavery.
EXPOSING THE CLINTON CURSE – TRAVESTY OF EMANCIPATION PROCLAMATION
NATURAL LAW vs MAN MADE LAW – SLAVERY IS CONTEMPT OF OVER 600,000 AMERICANS WHO DIED BECAUSE OF SLAVERY
US CONGRESS MUST DO THE RIGHT THING TO SAVE AMERICA FROM THE CLINTON CURSE
I ask my readers to review 43-word 13th Amendment and tell me if those words still govern, rule, and operate the lives of all people, wage earners who perform labor paying taxes.
My readers should not be surprised if I describe the US Congress as “Slave Driver.” The reason for my claim is based on PRWORA enacted by the US Congress in 1996 that amended The US Social Security Act of 1935. This legal provision enacted by 104th US Congress is incorporated as Section 202(y) of the Social Security Act. It mandates that no Retirement Income benefits shall be payable to registered alien(non-citizen) taxpayers in the United States without showing proof of lawful residency as determined by the Attorney General. In my view, unexpired Employment Authorization Document (EAD) must not be demanded if a worker has attained full retirement age as determined by law.
Social Security Act, Section 202(y) violates the principle enshrined in those 43 words called the 13th Amendment. This 1996 amendment to the Social Security Act is fundamentally flawed for it is unconstitutional. It takes away the property rights (earnings, wages, and retirement income) of individuals who paid Federal, State, Local, Social Security and Medicare Taxes working in this country to attain full retirement age.
The Emancipation Proclamation issued by President Abraham Lincoln (Republican) in September 1862 came into effect on January 01, 1863 freeing slaves in all territory still at War with the Union. These slaves were not citizens of the Land and had no political rights of their own. In Law, Servitude or Slavery refers to the burden imposed upon the property of a person by a specified right another has in its use. Servitude involves labor in which the person who performs labor has no right to his earnings from labor. The Emancipation Proclamation specifically protects, defends, preserves and safeguards rights of aliens or non-citizens residing in the United States.
The amended Social Security Act unconstitutionally gives power to Social Security Administration to withhold the property (wages, earnings, monthly retirement income benefits) of alien workers who are not convicted by US Court of Law. In my analysis, The Social Security Act of 1935 amended in 1996 fails to uphold the US Constitution as the Supreme Law of this Land.
I ask my readers to make the distinction between Social Security Tax and Monthly Retirement Benefit. The first represents tax paid to the government and the second represents earning or wage entitled to a retired person to provide income and security during old age.
Ann Arbor, MI 48104-4162 USA
SPECIAL FRONTIER FORCE
The 150th Anniversary of the 13th Amendment
December 9, 2015.|Speaker Ryan’s Press Office
WASHINGTON – Earlier today, at a ceremony in Emancipation Hall of the United States Capitol Visitor Center, President Obama and leaders of Congress commemorated the 150th anniversary of the 13th amendment to the Constitution. Following are House Speaker Paul Ryan’s (R-WI) remarks at the ceremony, as prepared for delivery:
The Thirteenth Amendment is just 43 words long. It is so short that, when you read it, you can almost miss the whole significance. You have to stop and remind yourself that 600,000 people died in the Civil War—600,000 died over 43 words. Or to be more precise, they died in a war that decided whether those 43 words would ever be written.
All said and done, President Clinton’s Evil Plan failed to resolve the problem of National Debt. The Repeal Movement exposes President Clinton’s contemptuous violation of Constitutional Principles of equal protection, equal justice and equal treatment under Law.
US Social Security Administration must either obtain a criminal conviction or designate septuagenarian Senior Alien as “SLAVE” to withhold the payment of his monthly retirement income.
President Clinton’s Slavery Law of 1996 tramples upon fundamental freedoms and human dignity entitled to all human beings without any concern for their country of origin or citizenship status.
The US Congress can levy taxes but cannot deprive any person of Life, Liberty and Property without due process of Law. The United States Cannot Balance the Budget and cannot solve the problem of mounting National Debt without reaping the Blessings of God’s Promise. President Clinton’s tricks and gimmicks will utterly ruin and destroy the Nation for he failed to obey the LORD.