By Lindsey Ellerson

Feb 5, 2010 5:26pm

GOPer Offers Alternative, Dems Pounce; Pelosi: ‘Here They Go Again’

ABC News’ Teddy Davis reports: For months, Democrats have been on the defensive in Washington. Thanks to Rep. Paul Ryan, R-Wis., the top Republican on the House Budget Committee, Democrats think that this is about to change. Ryan offered a bill last week, “Roadmap for America’s Future 2.0,” which would cut the tax rate on corporations, shift future Medicare and Medicaid beneficiaries to private insurance plans, raise the retirement age gradually to 70, and reduce the growth of benefits to make Social Security solvent. Ryan’s aides on the House Budget Committee say the Wisconsin Republican is a serious lawmaker who is actually tackling the fiscal challenges facing the country rather than taking the Obama approach of “punting” to an unelected fiscal commission. Democrats, by contrast, think that they have finally been handed the tools with which to expose what a Republican Congress would do. “Anybody who wants to see the difference between Democrats and Republicans need only look at their budgets,” House Speaker Nancy Pelosi told the Democratic National Committee on Friday. “The Republican budget provides tax breaks for the wealthy, it ends Medicare as we know it, and privatizes Social Security. Here they go again. Rehashing the same failed Bush policies.” “So I want you to take that home,” she continued. “The Republican budget that they presented to the House earlier this week, privatizes Social Security, turns Medicare into a voucher program, ends it as we know it today.” Pelosi’s attack, which was delivered to the DNC’s winter meeting in Washington, D.C., underscores the deep ideological differences which separate Democrats and Republicans.  Although President Obama said in Baltimore last week that Ryan is a “pretty sincere guy” and a person willing to “study this stuff and take it pretty seriously,” Democrats think the GOP lawmaker has given Democrats critical ammo with which to paint all Republican members of Congress. Asked why Democrats went from Obama calling the Ryan blueprint an “entirely legitimate proposal” to Pelosi’s hard-hitting attack in the span of just a few days, Pelosi spokeswoman Jennifer Crider told ABC News: “House Democrats will stand up for middle class families against the Republican leadership's budget that slashes taxes for the wealthy, privatizes Social Security, and dismantles Medicare.”
The broad brush attacks on Republicans are not entirely fair. For starters, Ryan’s “Roadmap for America’s Future” (H.R. 4529, CBO Analysis) is not the GOP budget. It is a legislative reform proposal offered by Ryan.  House Republican Leader John Boehner, R-Ohio, made this point on Thursday when he downplayed the plan by saying “it’s his,” referring to Ryan. “I know the Democrats are trying to say that it’s the Republican leadership. But they know that’s not the case,” said Boehner. As for the specific charges raised by Pelosi, this is the rebuttal offered by one of Ryan’s Republican staffers on the House Budget Committee: “Provides tax breaks for the wealthy” — The proposed simplified tax code retains it progressivity, and cleans out the tangled web of tax deductions and credits that are disproportionately used by the wealthy.  The tax base is broadened so that rates can be lowered. It also offers generous standard deductions so that a middle-income family of four pays no taxes on the first $39,000 of its income. More important, the business-tax changes in the Roadmap would deliver what all Americans seek at this time — increased job opportunities and higher economic growth. “Ends Medicare as we know it” — Under the President’s budget, Medicare would simply grow itself right into bankruptcy. Unlike the Majority’s health care overhaul that cuts half-trillion for current seniors to create a new entitlement, the Roadmap makes no change for seniors 55 and older.  For those under 55, the Roadmap makes this program permanently solvent so that we can fulfill the mission of health and retirement security for future generations.  The Medicare reforms provides future seniors with health coverage based on the that enjoyed by Members of Congress.  ”Privatizes Social Security” — The Roadmap provides seniors with the option either to stay in the traditional government-run system or to enter a system of guaranteed personal accounts. Neither option is privatized. In the personal-accounts system, the accounts are managed and overseen by a government board — not a stockbroker or private investment firm. People choosing the reformed system select from a handful of low-risk, government-regulated options — just as Members of Congress and federal employees do. ABC News’ Matt Loffman contributed to this report.

User Comments

This is What the Republicans has planned and wanted for a LONG time…now you have it.

Posted by: sara | February 5, 2010, 6:00 pm 6:00 pm

MAkes sense and if you read the preliminary CBO assessment they make one important statement “Federal spending for Social Security would be slightly higher than under CBO’s alternative fiscal scenario for much of the projection period, but the system would become sustainable as revenues increase and traditional benefits decline.”
The present system is not sustainable and what Pelosi, Obama, Reid, & Coharts (PORC) are proposing is not sustainable.

Posted by: Sandcrab1612 | February 5, 2010, 6:35 pm 6:35 pm

Sara, you didn’t read the article or didn’t comprehend it. IT WAS RYAN’S proposal not the republicans and it doesn’t matter who was suggesting we do these things, WE CAN’T KEEP SPENDING MONEY WE DON’T HAVE. Sooner or later we have to pay the piper!

Posted by: carol in Alabama | February 5, 2010, 6:49 pm 6:49 pm

Pelosi, what the Senate proposes in the HCR bill is dissolving Medicare so please explain what the difference between the Dem’s HCR bill and what Senator Ryan’s proposal? Secondly, for years, Congress has ROBBED social security and NOW there is NO money in SS for all the people that PAID into this gov’t agency. So, please explain to me, Ms. Botox Pelosi, why illegals get social security and why congress has been robbing SS?

Posted by: rukidding 55 | February 5, 2010, 7:17 pm 7:17 pm

Teddy, Obama’s comments that Ryan’s initial proposal was legitimate related to the continuation of medicare with hard caps on payments to seniors, but no caps on charges by providers. It DID NOT relate to privatizing social security, tax cuts for rich folks, or medicare vouchers. Respectfully, you need to be a little more accurate in your reporting.

Posted by: B.Bear | February 5, 2010, 7:22 pm 7:22 pm

How much did you spend Pelosi joyriding to Copenhagen? You should be deemed unfit to serve.

Posted by: Huh | February 5, 2010, 7:27 pm 7:27 pm

Would ANY media person ask Pelosi how she plans to pay for her ridiculous spending sprees?

Posted by: wheresmymoney | February 5, 2010, 7:29 pm 7:29 pm

We should all want our country to get out of this recession, create jobs, and trust in our lawmakers. What we have is a republican party that will not cooperate in any way to come to a compromise. If tax cuts were the answer we would all be doing great right now. If cutting all the social programs is the answer then cut out Medicare, Medicaid and Social Security. Republicans have been against these programs for years. We will just let corporations get their way. We will continue to allow Wall Street to gamble with our money. We will only listen to Fox News for the one way ideas. We can see how fast we will zoome to being just like a third world nation where there are some rich and the rest are poor or poorer. Keep your heads in the sand republicans while nothing gets done because republicans are opposed to it.

Posted by: Vicki | February 5, 2010, 7:33 pm 7:33 pm

Privatizing social security is a great idea. It will stop the politicians to stop stealing money from it to pay for other entitlements. After all it is going broke with the government running it plus they nwill invest the money like private retirements that always have an excess of funds.

Posted by: Stanley | February 5, 2010, 7:44 pm 7:44 pm

The nerve of that Ryan guy offering up at least something. How dare he!Social security is not and should not be a political football and as various articles state this week that social security is really broke…now. If you don’t gradually increase the retirement age, reduce some of the benefits and grow the return on the money put in, the only other solution is to raise taxes (which is basically all a democrat knows to do) to the people who will need it most and that is the working class people of the country.
The “Heckle and Jeckles” that repeat this old and tired “failed policy of the Bush years” are not going to be in office very long as we, the people that really pay the bills are tired of mouthy do nothing politicians. And Nancy dear that goes for you too!
By the way how are the snacks and beverages for your family and other assorted posse members on the jet that we furnish you with? How was Davos? $2200 a nigt room comfortable? Did you get a mint on your pillow?

Posted by: david | February 5, 2010, 7:58 pm 7:58 pm

We spent billions in IRAQ , but the Republicans kept quiet- no protests. Now they claim that we are spending too much money here at home to prop up the economy they ran into the ground. The numbers are finally turning from 750,000 to 20,000 jobs lost per month. America better wake up to right wing hypocrisy. The next thing is to privatize social security and let the rogues on Wall Street run the show. What Rayn has proposed is just a tip of the iceberg, for middle class America, they are bent on sinking the middle class, who they expliot with lies, fear mongering, and useless rhetoric.

Posted by: JOACHAM | February 5, 2010, 8:07 pm 8:07 pm

JOACHAM – Let me direct you to a paragraph above that you obviously did not read and comprehend.
““Privatizes Social Security” — The Roadmap provides seniors with the option either to stay in the traditional government-run system or to enter a system of guaranteed personal accounts. Neither option is privatized. In the personal-accounts system, the accounts are managed and overseen by a government board — not a stockbroker or private investment firm. People choosing the reformed system select from a handful of low-risk, government-regulated options — just as Members of Congress and federal employees do.”
This is not the traeament of Social Security that you expouse.
Here is what the CBO said about the Social Security portion of the proposal. “Federal spending for Social Security would be slightly higher than under CBO’s alternative fiscal scenario for much of the projection period, but the system would become sustainable as revenues increase and traditional benefits decline.”
Sustainable? That word doesn’t mean a thing to Pelosi and it should as it means the proposal will pay for itself in time not continue to use borrowed money.

Posted by: Sandcrab1612 | February 5, 2010, 8:13 pm 8:13 pm

“the GOP lawmaker has given Democrats critical ammo with which to paint all Republican members of Congress.”
If other Republicans have a problem with being painted with that brush, they have only to put forth their own proposals. Not hard to do, but I’m not holding my breath.

Posted by: jhw539 | February 5, 2010, 8:20 pm 8:20 pm

Well the dems only want to spend money we don’t have and have our children pay for them.
Shame on you dems!

Posted by: jonny | February 5, 2010, 8:37 pm 8:37 pm

Republican Rayn proposing a social security guaranteed accounts run by a GONVERMENT BOARDS?? The same big government that can’t seem to do anything right- runs the Army, Navy, Air Force, Police, highways, fire fighting, social security, Medicare and Medi-Aid that has been under assault by the Republicans since they lost is being now suggested by a Repubilans to form a BOARD to oversee a new social security guaranteed accounts??. These people are crazy, they will say any sweet sounding stuff to get fools votes during the upcoming elections.

Posted by: JOACHAM | February 5, 2010, 8:40 pm 8:40 pm

JOACHAM – Obviously you still need some proding. Google TSP and take a look at what members of Congress and federal employees have. From the way TSP works and this article reads it should be almost the same program but available to all who work.

Posted by: Sandcrab1612 | February 5, 2010, 8:53 pm 8:53 pm

This “woman” charged up over $100,000 in alcohol on her little plane rides last year that taxpayers were forced to pay for…and she has the nerve to open her mouth?

Posted by: horseforfeathers | February 5, 2010, 9:01 pm 9:01 pm

The system would become sustainable as revenues increase and traditional benefits decline.” Read: As cost of living increases and benefits are more and more expensive, seniors will get less and less until revenues equal expenses. —- The alternative is less appealing to the GOP: Pay down the debt, both foreign and domestic, as well as Intra-government holdings Debt to reinstate Social programs sustainability by: Having a solid tax revenue from all groups that live over the poverty line, scrap tax havens and fiscal evasion, add a consumer tax “VAT”, aggressively pursue “PORK” and air it out in public and on the internet, in a YOUTUBE monthly TV SHOW: THIS WEEK IN PORK with photos of the PIG-Farmers on it, cut military spending by 30% by closing military bases in most of the 39 countries where they are, (and avoiding getting into stupid ideological wars)scrapping worthless new planes development and bringing a team of auditors in the Pentagon to look for the “900$ toilet seat” type expenses, cut all other non-defense unnecessary programs excluding R&D and new energy, cancel all subsidies to AGRIBUSINESS AND OIL AND GAS, keep PAY-GO by passing it for 30 years (Let’s have the GOP try to repel it and see what happens!)As soon as there is enough surpluses to insure DEBT payment on a 25-year horizon, any additional surplus will be balanced by a VAT decrease to 0, followed by income and corporate tax reductions (in that order) down to budget balance – including debt reimbursement.

Posted by: treblig56 | February 5, 2010, 9:19 pm 9:19 pm

Sandcrab1612 | Feb 5, 2010 8:53:50 PM: Who will select these low-risk options? And what if the low-risk turns out to lose 35% of its value like many 401-K did in the last 18 months? Someone making 200,000 a year could afford a rate hike to let’s say 12% up to the maximum eligible revenue – 106, 000$ – from the current 6,2% to replenish the fund , someone making 40,000 may not be able to afford a 2400$ yearly increase.
These kind of options are manageable by people who have money, not by everybody. So, this is another way to get money out of Bonds and T-Bills into the stock market, where people willing and able to gamble their Social Security money they don’t really need will try to make a buck, leaving behind the rest, with less money, and vulnerable to the whim of the next GWB.

Posted by: treblig56 | February 5, 2010, 9:38 pm 9:38 pm

Pelosi is the hypocrite here by spending money we don’t have and ruining the economy. Wake up, people. Keep putting forth sensible ideas, Senator Ryan, some people are listening. We can’t spend our way out of a recession.

Posted by: ConservativeInNebraska | February 5, 2010, 9:39 pm 9:39 pm

At least this guy Ryan has the guts to offer some solutions to problems that Pelosi and Co. wont touch because they are too politically sensitive. The sooner that we address social security and medicare, the less painful the medicine we have to take.

Posted by: jim 234 | February 5, 2010, 9:46 pm 9:46 pm

the democrats are getting just absolutely rediculous. All obama, pelosi, reid, etc want to do is say “the GOP is not bringing ideas” – when what they really means is “the GOP needs to come to us and regurgitate the bad ideas that WE want to do – otherwise we are going to say they aren’t bringing us any ideas”. LOSERS – all of them.

Posted by: clr | February 5, 2010, 10:10 pm 10:10 pm

treblig56 – TSP has several different funds to put your money into. Some are reativly safe i.e bonds while on the other end are higher risk stock funds. Thus you can choose where to put your money, typically when you are younger you would put your money in a higher risk fund and as you age you would over time move it to a safer fund. TSP does not require that all of your money be in one fund so you could concievably use a portion in the higher risk funds while most of your money would be in a safer fund.
Remember the stock market has never lost money over any seven year period in history so you have to think long term not short term.

Posted by: Sandcrab1612 | February 5, 2010, 10:26 pm 10:26 pm

PLEASE PLEASE I DONT BELIEVE MY HEART CAN WITHSTAND ANY MORE PICTURES OF PELOSI. IT SENDS A CHILL UP ME BUT ITS NOT MY LEG.

Posted by: rking | February 5, 2010, 10:29 pm 10:29 pm

Darn Republicans! How dare they propose something that might actually work but does nothing to sooth my raging jealously of the rich.

Posted by: aljack | February 5, 2010, 11:15 pm 11:15 pm

Thanks to the author for the a rare fair story on Rep. Ryan’s proposal.

Posted by: aljack3 | February 5, 2010, 11:19 pm 11:19 pm

Privatize Social Security? Brilliant idea. If that plan was in effect a year ago every senior in America would have been wiped out.

Posted by: Eric | February 5, 2010, 11:25 pm 11:25 pm

What is Senate bill 2799? — Harry Reid passed the bill that would punish any company exporting gasoline to Iran. Cut off a country’s gas? That leads to war! — Is Obama going to save his Presidency, and keep Dems from being booted from congress by pulling the “War Card”. One journalist said it would make a “dramatic gesture to change the public perception of him as a lightweight, bumbling ideologue”. — by ordering the U.S. military to attack Iran’s nuclear facilities, would Obama get Americans to support the attack today and “rally around the flag”

Posted by: TheLoyalOpposition | February 5, 2010, 11:31 pm 11:31 pm

Eric — Keep going the way we are and NOBODY will have SS, Medicare, or Medicaid in 20 years — BRILLIANT!!!!!

Posted by: TheLoyalOpposition | February 5, 2010, 11:33 pm 11:33 pm

OK Pelosi, every GOP plan is horrible!!! — That is why when the Dems took over congress and the white house, they keep the plans put in place by Bush!! —- Patriot Act?? — how many times did we hear from the left that Bush was usurping freedom, OH, but Obama extended it!! — War in Iraq and Afghanistan?? — You would have done exactly the opposite, UNTIL you took over and followed Bush’s plan to the letter!!! — You can call the GOP the “party of no”, but the Dems are the “party without an original idea”!!!

Posted by: TheLoyalOpposition | February 5, 2010, 11:40 pm 11:40 pm

TheLoyalOpposition…..Eric is right. Talk to the seniors now who lost. Thank god for ss the way it is now or our seniors would be the most vunerable!

Posted by: stop being so selfish | February 5, 2010, 11:40 pm 11:40 pm

You can call the GOP the “party of no”, but the Dems are the “party without an original idea”!!!
Posted by: TheLoyalOpposition**************Disagree. These parties have different ideas you just lean more right and diasagree with the left period!

Posted by: stop being so selfish | February 5, 2010, 11:43 pm 11:43 pm

We all worked and earned the Social Security, we entrusted this Nation to give us what they took from our pay. I will not wait till I am 70. I could have been on Social Security before but they raised the age, now raise it again and hope I die so they don’t have to pay me. Quit screwing around with us, or we will cut your legs off. I am not taking it anymore from these lawmakers. Give me my Social Security.

Posted by: godhearus | February 6, 2010, 12:03 am 12:03 am

Why would anyone want to work with Pelosi? That wicked witch would just turn it against you. Best approach is to just to wait until Nov. and let the voters sweep them out!

Posted by: stevemb12 | February 6, 2010, 12:46 am 12:46 am

horse, I like your blog. But, If your room costs $2200 a night, you might as well spend 100K on alcolol. I hope my Rep. from Mo., Rev. Cleaver , had a good time! We will see how this relates to votes in 2010.

Posted by: stevemb12 | February 6, 2010, 12:54 am 12:54 am

When the only tool you have is a hammer, everything looks like a nail.
The same tired old class warfare lies spew out of the Marxists running the Democratic party. Instead of learning from their mistakes, the Democrats are redoubling their efforts to expand Obama’s Failed Policies. Read Ryan’s proposal, it’s not 2000 pages long. It’s a common sense plan. The Democrats have ZERO credibility left! “Health Care Reform” proved to the country that the only thing Pelosi, Reid and Obama do well is lie, lie, lie.

Posted by: Charley X | February 6, 2010, 3:02 am 3:02 am

Where were all you fiscal conservatives when Bush & Cheney were running amuck with the federal budget. Not one word and now suddenly you are all up in arms about spending. Maybe , if you all would have spoken up a few years ago our country would have this mess.
Weren’t the Bush tax cuts for the wealthy supposed to grow our economy and grow jobs? It appears this only grew greed. Wasn’t Wall Street an eye opener when a million dollar bonus just wasn’t enough. The large corporations made bad decisions and what happened they rewarded the very people who made those bad decisions with huge bonuses. Funny, if the average worker screws up at their job they get fired they don’t get a pay increase. But even when these executives were let go they still left with millions. I don’t have a problem with anyone receiving a bonus for their work if their company prospers, but a bonus when your decicions caused your company to fail should not be rewarded.

Posted by: I've had it | February 6, 2010, 6:08 am 6:08 am

Proposing to raise the retirement age to 70.
This is how you will identify a SERIOUS politician who cares about the solvency of the United States.

Posted by: cindy | February 6, 2010, 6:59 am 6:59 am

Pelosi is an idiot. What solution to the entitlements mess has she ever offered? NOTHING? She is nothing but a pandering politician who doesn’t know how to balance her checkbook. Time for her to go.

Posted by: james | February 6, 2010, 7:51 am 7:51 am

Republicans do best when they are on the outside and can snipe. When they have to have to come up with ideas they are as tiresome as ever….Both parties are a joke..

Posted by: indy_voter | February 6, 2010, 8:29 am 8:29 am

The funny thing is if a Democrat suggested these things, the republicans on this board what rip it apart.
Please do no believe everything you hear on “Talk Radio”, political blogs and Foxnews.
Brain-washing is a powerful thing!

Posted by: John D | February 6, 2010, 9:19 am 9:19 am

Pelosi: ‘Here They Go Again’
Funny that is what I thought when I read about Pelosi taking her buds to Copenhagen on our dime. This woman is a national treasure. We need Ron Paul to teach her about fiscal responsibility and respect for the taxpayers.

Posted by: Huh | February 6, 2010, 10:27 am 10:27 am

It also offers generous standard deductions so that a middle-income family of four pays no taxes on the first $39,000 of its income.
_______________________________________
Is this a bad thing? Nancy Pelosi seems to think so.
The Medicare reforms provides future seniors with health coverage based on the that enjoyed by Members of Congress.
_____________________________________
Okay, NOW we are getting to the reason Pelosi is upset.
People choosing the reformed system select from a handful of low-risk, government-regulated options — just as Members of Congress and federal employees do.
_____________________________________
Oooohhhh, now Pelosi is STEAMING! How dare a Republican give the SAME treatment to trolls (that’s us) that the Queen and her court receive! OFF WITH HIS HEAD!
I had always assumed that the elite, high minded, look-down-our-noses-at-everyone liberals were out of touch with the regular people out here in America, but this one takes the cake.

Posted by: Shoe | February 6, 2010, 10:28 am 10:28 am

Typical Democrat response. A Republican offers a proposal and Pelosi rips it. Pelosi shows just how partisan she is. Ryan makes some recommendations, explains them and Pelosi doesn’t want to hear it. So so much for th Demcrats yelling the Republicans are the party of no. It seems the Democrats are the party of no. No changes to entitlement programs, no change to how to appraoch taxation unless it is more, no new ideas, no listening to the other side, no compromise. This is where we are going with the Dems in charge.

Posted by: jschmidt | February 6, 2010, 10:37 am 10:37 am

Joacham-I understand your point but the key is to get the funds invested in the same program the Congressional investment funds are put in. They use funds invested by private managers which return a market rate with risk,. For instance they use the targeted type funds. So if this is a govt group doing the investing then they are doing ik, After all do you think Congress would risk losing their investments. The problem with SS and medicare funds is they barely keep up with inflation. Over the long term, the market can be used with minimal risk for investments. You wouldn’t put 100% in a high tech fund or a junk bond fund. You spread the risk. So pointing at the recent market loses is not a true model. Yes people have lost investment money, but over the long term, the market will return.

Posted by: jschmidt | February 6, 2010, 10:45 am 10:45 am

Response to Carol in Alabama and others like you: “We can’t keep spending money we don’t have”. Do you people realize what the GOP and conservatives are doing to you? They have created a sense of panic with “deficit fear mongering”. It has become a key part to their strategy. Do you realize that the large deficit we are currently running has more to do with our economic crisis than spending? What has the crisis done to us? It has lowered tax receipts, required bailouts of the financial instituions who took ridiculous risks, and created a high, high rate of unemployment. And it is noy too hard to understand that if the unemployment rate stays at this level, how are tax recepts ever going to rise to take care of the deficit. The Republicans/conservatives know this and they want to make sure that the “misery index” of unemployment stays high so the can get back in power. If anything we should now be increasing the deficit with “job creation” to get people back working. Otjherwise, how are snmall businesses ever going to sell their services and products. They aren’t hiring because they have no one to sell too or they can get by with a skeleton staff. But here is the KICKER, Carol (and others). Our deficit will never come down in the long run as long as nothing is done to reform health care. The costs from that are simply too great. So instead of you and your friends allowing yourselves to get up in the Republican Propaganda Deficit Fear Frenzy, communicate with them and tell them to work with the administration to solve these huge problems confronting us as a nation – and quit playing “hysteria politics”.

Posted by: CND FOX | February 6, 2010, 11:41 am 11:41 am

“Brain-washing is a powerful thing!”
The only people who are brainwashed are people who belive that the system as it is now, will survive and be there for people who pay tremendous amounts into it each year.
Who will need social security the most? Obviously the people who earn their livings. Should they be required to pay more into the system to keep it as it is now? Remember that it cost about 13% of your wages. To have someone step forward and offer to talk about it, even offer some solutions in todays political climate is surely better than sitting on ones hands. Mr. Ryans suggestions may or may not be viable but it is a start to problem solving and certainly beats any suggestions by far than anything that has come out of Democratic led congress in several years.
We provide a jet for Pelosis jaunts here and there with her family and posse. No problem I say, but to have this ultra wealthy woman provide meals, snacks and booze to all her followers and then bill these expenses to the tax payers speak volumes to me.

Posted by: david | February 6, 2010, 11:49 am 11:49 am

If SS had been left to wall street (privation like the Reps want) we would be in one H- – - of a mess. Grandma & Grandpa would be begging on the side of the streets….but that’s okay cause the big $$ men would have made more money. After all, those big $$ men are the ones that represent the Greedy Old Party.

Posted by: joshua | February 6, 2010, 11:49 am 11:49 am

David …let me make one correction “shallowness of the mind and brainwashing are powerful things”. And the GOP knows it and is exploiting it with fear, misinformation, conspiracy theories – and now misguided “deficit hysteria”. And you know who will lose the most? The unemployed. And then “in anger” they will vote out those “libs, socialists and Dems” and put those back in power who created this mess in the first place. Yep, shallow minds and brainwashing through a constant pounded message of misinformation are powerful tools indeed. That is what is so wrong with the conservative, tea party right wing movement – they just do not get the game that is being played on them.

Posted by: CND FOX | February 6, 2010, 12:04 pm 12:04 pm

Let’s give the reigns to the Party that voted with Bush 95% of the time! Yes, it’s true, we all should be voting with the party that though Bush/Cheney are the GREATEST LEADERS of modern history. PS- I’m being very sarcastic! Some morons may not have caught that.

Posted by: luvmicountry | February 6, 2010, 12:04 pm 12:04 pm

can’t we just take advice from the likely Obama heroes and simply print money and, when that fails, just start nationalizing industries, mandating full employment, initiate protectionists excise taxes, and criminal charges for reactionaries who seek profit. Maybe also some Five Year Plans?

Posted by: Ed | February 6, 2010, 12:07 pm 12:07 pm

David: “We spent billions in IRAQ , but the Republicans kept quiet- no protests.” To all you loons that keep saying the wars were Bush’s. I will try to educate you, even though I don’t expect you yo understand. Presidents don’t declare war, congress does. Look at the votes for both wars. OVERWHELMING support from both parties. Once we got in though the usual woosy Dems wanted to declare a loss and run. THANK GOD Bush and the GOP believed in keeping this country safe. Good use of money I would say, better than redistribution of MY MONEY. And the one TRILLION dollar porkulus is a great example of why the Dems will be losing again in 2010. Wasteful, tax and spend, loony liberals aren’t built for the long haul.

Posted by: Tony T | February 6, 2010, 12:16 pm 12:16 pm

Oust Pelosi in 2010 and save America!

Posted by: Ed Taylor | February 6, 2010, 12:18 pm 12:18 pm

Silly Americans. You thought there were TWO parties… Tsk, tsk. Now only the majority party counts. And they dictate with the White House what we the people must live under. Wether we support it or overwhelmingly OPPOSE it!
You in the MAJORITY of America actually have the unmitigated GALL to think that your opinion should matter to the political elites of either party? FOR SHAME! I am embarrased for your naievete…
Wake up America. YOU don’t mean shitte! YOU don’t matter! You never did! All they want to know is that you keep paying your taxes and fund their lavish lifestyle and bankroll their family members and cronies in perpetuity! Don’t you get it by NOW! Open your eyes, get mad, DO something! Or forever shut the hell UP! And take it… like the sheep that you are.

Posted by: jafo | February 6, 2010, 12:23 pm 12:23 pm

“exploiting it with fear, misinformation, conspiracy theories”
I don’t know exactly who you refer to, obviously people that I do not associate with. However, if it is your claim that social security and medicare are ok and shouldn’t be modified then I suggest you vote with people who are in denial about the actual health of these programs and the mounting debt that these programs are running up and also be prepared to pay more for it.
For myself, I do not go deeper into debt when my income drops, perhaps by deflating our currency this will work for the Government but in the end the money we each hold will one day be worth a lot less meaning that not only will the wealthy pay for it-so will the little people such as myself.

Posted by: david | February 6, 2010, 12:24 pm 12:24 pm

More Scare Tactics from the
Clueless Democrats!
End Medicare as we know it?
I don’t think so!
In case Pelosi and her Democrat
colleagues have been living in caves
for the past decade Medicare is
Going Bankrupt you Fools!
At least Ryan and the Republicans are
trying to fix the problem!
All Obama, Pelosi, and Reid can come
up with is spend and print More Money!

Posted by: reaganfan | February 6, 2010, 12:46 pm 12:46 pm

She shreaks that Republicans don’t offer to participate and shreaks louder when do participate. If only the Bay Area would end the shreaking and elect someone else.

Posted by: Charlie C | February 6, 2010, 12:50 pm 12:50 pm

Hank Paulson (President Bush’s Secretary of the Treasure) defined the GOP best in his speech on “morale hazard”. For the record per Hank Paulson, the catechism of “moral hazard” is, “if you bail someone out of a problem they themselves caused what incentive do they have the next time not to make the same mistake.” America ask yourself, who in their right mind would vote for the group that drove the country into the ditch for eight (8) years, and now two (2) years later they still have “no new ideas”? ….Simple! Simple! Simple! Just remember what Paulson said about the catechism of “moral hazard”.
BEWARE! BEWARE! BEWARE!…….In the 1980’s Ronald Reagan ushered in a new era in American economics as he cut the top tax bracket from 70% down to 50% and then down again to 28%. In order to get support for doing this from the people, and also from politicians, a very crafty set of lies were produced. As David Stockman, then Reagan’s budget director, put it: giving small tax cuts across the board to all brackets was simply a “Trojan Horse” that was used to get approval for the huge top tax bracket cuts. “Trickle-Down” was a term used by Republicans that meant giving tax cuts to the rich. Stockman explains that: There is no realistic way for “Trickle-Down” economics to work to increase the income of the working classes of America. In fact I am certain that the developers of the theory of “Trickle-Down” economics were fully aware of this and that “Trickle-Down” has in fact worked as intended. This means that the intent behind implementing “Trickle-Down or Supply-side theory” was to benefit the wealthiest Americans at the expense of working class Americans. “Trickle-Down” hasn’t failed, as many modern economists have suggested, it has succeeded in its goals, which is the increase of economic inequality and the shift of a greater portion of America’s wealth into the hands of the wealthiest Americans. And too there were tax increases in the “Trickle Down”, these increases fell mainly on consumers, low- and middle-income people. Sales and excise levies. Reagan didn’t call these taxes. They were, in his euphemistic lexicon, “user fees” and “revenue-enhancers.” The tax increases were to help minimize the any budget deficit.

Posted by: hot coffee | February 6, 2010, 1:09 pm 1:09 pm

We had a recession after the Tech Bubble and 9/11. How did we get out of it- tax cuts. They allow business to grow and invest. We have low interest rates and what is key now is to not raise taxes on business and to increase lending to small business. UK is raising taxes on bonuses to 50%. The banks are offering to move their employees out of the country. Swizerland has a 5% corporate tax. They don’t have a problem keeping companies. The Democrats hate business and their policies are putting us on the wrong track. If a small portion SS and medicare fund had been invested in the stock market 30 years ago, we wouldn’t be having a bankruptcy problem with them. After the tech bubble, it took 18 months for the stock market to be right back where we were. If a portion of SS funds are invested, balanced, it could make a better profit than the how it is invested now. The Dems use the hate business practice because it is populist rant that is wrong. Businesses supply jobs. Guess the Dems don’t know that.

Posted by: jschmidt | February 6, 2010, 1:25 pm 1:25 pm

The only pro for privatizing Social Security is so that the government can stop taking money from that pool, which they’ve been doing since these wars started. I would prefer they pass a law that simply doesn’t allow that money to be touched by ANYONE, period.
As for raising the age of retirement, are they kidding me? We need to LOWER it. Most people are going to be working themselves to death if it goes to 70. How is that bettering ANYONES happiness in their life? The problem is these people make enough that they never have to worry about retiring at a certain age. Most people can’t even walk when they’re 70, let alone work!

Posted by: Pip | February 6, 2010, 1:39 pm 1:39 pm

So we’re saying Dems “Tax and Spend” right? So that puts Repubs on the “cut taxes and go broke” side of the equation right? Because that’s where we are right now, Taxes were cut several years in a row under the Repubs watch… and now we’re broke. So now their plan is to turn everything over to private industry… which has done SOOOOO well recently right?

Posted by: DewyB | February 6, 2010, 2:08 pm 2:08 pm

jschmidt…I’ll tell you right now what is wrong with your “tax cut” theory. Who gets the richest when this occurs and who suffers most? And why should our economy have to have “bubbles” if it is regulated soundly and properly? Not to kill business. Just to keep the “over the line risk takers” in tow that “create those “bubbles” such as the last financial one” that just about destroyed us. To me, you sound like an apologist for the extreme wealthy. Any self-interest there?

Posted by: CND FOX | February 6, 2010, 2:44 pm 2:44 pm

Republicans haven’t had a new idea since the 1950′s if ever…..Dismantling government and lower taxes make good campaign slogans….but the fact is the Republicans don’t have the guts to actually do what their conservative base prods them to do. There are no simple answers to the problems in this country…and pandering to people with simple ideas to complex problems is gutless..

Posted by: indy_voter | February 6, 2010, 2:55 pm 2:55 pm

Sandcrab1612 | Feb 5, 2010 10:26:41 PM: It’s about previsibility, not profitability. The DOW is back at the 1999 level, that’s 0% yield over 11 years! The less people in the SS trust fund, the less pressure on government to keep it solvent. My guess is that the poorer people would stay, the richer would go for these GOVERNMENT-chosen, GOVERNMENT-managed funds, as they better can withstand the market risks. How is one to assume that the current scenario with SS is not to repeat itself with these funds? Please tell me where I went wrong in my assumption that people who don’t really need SS are the least affected if the fund they invested in hits a low point or is mis-managed by the agency responsible for it, as so many GOP claim is the case for everything GOVERNMENT! BTW, Isn’t the GOP against GOVERNMENT intervention? — It is not about choice, it is about bringing trillions of dollars more into the stock market, out of those “greedy incompetent GOVERNMENT hands” and having GOVERNMENT decide where and how it is invested… Makes no political, common nor financial sense to me.

Posted by: treblig56 | February 6, 2010, 3:07 pm 3:07 pm

Please, no more pictures of Pelosi!

Posted by: stevemb12 | February 6, 2010, 3:31 pm 3:31 pm

Isnt’it the height of irony that the GOP, the epitomy of government hate, is proposing to take money out of a fund that is basically “government hands-off”, since surpluses are invested “by law” in Bonds and T-Bills, – and the goverment has no say in changing that – and getting it into GOVERNMENT CREATED, GOVERNMENT MANAGED investment funds? And Pelosi OPPOSING GOVERNMENT CONTROL of SS funds is being savagely attacked by GOP and conservatives? Yes, Chicken Little, the sky is falling indeed…

Posted by: treblig56 | February 6, 2010, 3:40 pm 3:40 pm

I just hope my Rep. from Mo., the honorable Rev. Cleaver, enjoyed his stay in Copenhagen. Pay? He will pay for it at election time.

Posted by: stevemb12 | February 6, 2010, 3:44 pm 3:44 pm

stevemb12…Ever hear the saying that the “devil you know is sometimes better than the devil you don’t”. Well, in this shallow political landscape of “just throw the bums out”, you might want to think about it. Tea partiers, conservatives and wing nuts are using that shallow rallying cry quite a bit lately. Too bad they are not intellectual enough to know who the “Devil” really is.

Posted by: CND FOX | February 6, 2010, 3:59 pm 3:59 pm

Funny, one of my posts did not go through… Let’s try it again! Social security will take in 600 billion$ this year alone, and growing. If 50% of this money is invested in the low-risk investment funds, it means 300 billion$ formerly invested in Bonds and T-Bills will go, at least partly, my guess is mostly, into the stock market. Let’s say 200 billion$ a year. GOVERNMENT Fund managers will have to make decisions into which sector they will invest these 200 billions$ Will they choose oil and gas or renewables, PHaRMa or high-tech, military contractors or Rail transit? Once that is done, they will have to choose individual stocks. Let’s say 3 Corporations, with similar financials as far as solvency, P/E and D/A ratios, stability and cash reserves are candidates for a 300 million$ investment; is it possible that these 3 Corporations would try to sway the decision through political contributions and/or lobbying geared towards the fund managers? And if Corporation X was the best rational choice, but there were vested interests in Corporation Z for members of the managing team through family or business associates, could that not make Corporation Z the final choice? This is a political proposition, looking at divesting SS towards the stock market, with promises of more political decisions to help certain sectors of the economy and individual corporations, with the added bonus of more political contributions. That is why such an unnatural GOP proposition of more GOVERNMENT involvement was tabled, and why Ms Pelosi’s rejection of the plan draws such vicious attacks from GOP and Conservatives…

Posted by: treblig56 | February 6, 2010, 4:03 pm 4:03 pm

Boy, this board got quiet in a hurry!

Posted by: treblig56 | February 6, 2010, 5:34 pm 5:34 pm

Treblig56…yes it is very ironic and even sadder that the middle class and blue collar worker cannot figure out how and what the “conservative backlashers” have done to them. First time in a long time the nation has had the courage to vote in a progressive administration and then abruptly turns its back on it. Because the other side has so much money and powerful lobbies that spread fear and misinformation – and these poor souls don’t know the difference.

Posted by: CND FOX | February 6, 2010, 5:36 pm 5:36 pm

Pelosi should look at the budget obama just submitted. FICA taxes collected are 985billion while we pay out over 2130 billion (thats 2.2 TRILLION!) in social security medicare and medicaid.
the huge deficit which is going to get worse at the boomers retire, is what is causing the TRILLION dollar deficits. even if you raise the tax rate to 100% of those over 250K/yr, you still cannot bridge these types of deficits.
She is hurting the country and the Democrats are refusing to look at the problems. Social Security was to run surpluses; Meidcare as a few billion per year, etc. Now they are trillions in the hole and how can we beleive the democartic health bill will not speed us down the road to default even faster?
Pelosi needs to go!

Posted by: scott jeffries | February 6, 2010, 5:41 pm 5:41 pm

CND FOX | Feb 6, 2010 5:36:10 PM You are so right! But I think the days are over when the GOP alone went to war to defend its ideas… Re-hiring David Plouffe and giong on the offensive to counter lies and half-truths with solid arguments, outing the GOP blatant refusal to cooperate while crying they’re being shut out, as Obama has started doing with his SOTU address, will eventually sink into the minds of people who actually care to know what is really happening, keep their mind open and use it to make their political decisions. The groups, such as the Tea-party, Conservatives and Obama-bashers cannot be swayed, however compelling the evidence is, to them I say Good luck!

Posted by: treblig56 | February 6, 2010, 5:46 pm 5:46 pm

scott jeffries | Feb 6, 2010 5:41:22 PM: First, it is not about Pelosi, it’s about diverting social security from guaranteed financial instruments such as T-Bills and US Bonds to the stock market and having government, i.e. politicians, decide in what economic sector and specific corporation it will go. This is scary at best! Please read my 4:03 post and tell me if and where my logic goes wrong, please… As far as FICA collecting 985 billion and spending 2130 billion, where do you get these numbers? Maybe you were looking at projections for some future year, ecause as far as the “Social Security Trustees Report for FY 2008″ goes, it states total revenues from FICA, That is OASI, DI, HI, SMI of 1.286 Trillion$ and expenditures for the same 4 departments of 1.09 Trillion$, a 192 billion$ surplus. You may want to look at the numbers closer YOURSELF, before inviting Ms.Pelosi to do so. Just a little note, How could you believe that Social Security and Medicare would spend 2,13 out of a 3,8 trillion$ budget?

Posted by: treblig56 | February 6, 2010, 6:29 pm 6:29 pm

cnd fox- if you read my posts you’d see I said cut business taxes. Indicidual taxes are another story and another discussion. Business taxes do not encourage businesses to hire and grow. You can’t regulate to fine tune an economy. Bubbles happen. You can try to reduce them but the more you try to regulate the more you discourage business. Those become unfunded mandates that drag business down. And right now I’d like a business to hire me as I’m not working. The whole personal tax system needs to be overhauled. Perhaps consumption tax instead of income tax. But if you agree with the Dems that business taxes are good then you will not see this economy come back anytime soon.

Posted by: jschmidt | February 6, 2010, 6:51 pm 6:51 pm

treblig- I see your worry about stock market investing becoming political. When a president and VP take office their investments go into a blind trust. You can take some money going into SS say 10% and invest it into target funds run by outside managers. It would need to be the best performing managers with low fees. It can be done as the Congressional 401ks are currently invested in targeted funds. The T bills and US bonds don’t make enough to outpace inflation. Over the long term the market is the best investment.

Posted by: jschmidt | February 6, 2010, 6:56 pm 6:56 pm

jschmidt | Feb 6, 2010 6:56:16 PM: Read my post carefully; GOP is proposing that Social security contributions could be invested in GOVERNMENT CREATED, GOVERNMENT-MANAGED low-risk funds. My point is that the Government Board overseeing the Fund will be made up of either politicians, or members appointed by politicians. The make-up of the funds will be decided by politicians. There is a lot of opportunity for political interference as in which economic sector or corporation will get access to these funds. We are talking at amounts between 200 and 500 billion$ a year in new contributions, on top of a large chunk of the 3 Trillion$ already in the trust funds. I do not care about where Reps and Senators invest their money, or even where richer people who can palate the risk of privately investing money they probably do not need, the proposal is opening way too many doors to influence peddling and lobbying to get at some of that money, it is scary… It also leaves poorer people by themselves with the burden of keeping the current fund solvent, and we know what happens to entities from which the wealthy are absent, they get underfunded or ignored, which a few years from now means a proposition will come to eliminate what’s left of Social security, and the GOP dream of privatizing the whole thing will be fulfilled.

Posted by: treblig56 | February 6, 2010, 7:33 pm 7:33 pm

treblig56 – Throughout the 1950s and 1960s, during the phase-in period of Social Security, Congress was able to grant generous benefit increases because the system had perpetual short-run surpluses. Congressional amendments to Social Security took place in even numbered years (election years) because the bills were politically popular, but by the late 1970s, this era was over. For the next three decades, projections of Social Security’s finances would show large, long-term deficits, and in the early 1980s, the program flirted with immediate insolvency. From this point on, amendments to Social Security would take place in odd numbered years (years that were not election years) because Social Security reform now meant tax increases and benefit reductions. When revenues exceed expenditures, as they have in most years, the excess is invested in special series, non-marketable U.S. Government bonds, thus the Social Security Trust Fund indirectly finances the federal government’s general purpose deficit spending. It is also interesting to note that the Supreme Court has established that no one has any legal right to Social Security benefits. The Court decided, in Flemming v. Nestor (1960), that “entitlement to Social Security benefits is not a contractual right”. In simple terms, the decision means that since no one has any legal right to Social Security benefits, Congress can cut or eliminate benefits at any time.
The Trust Fund is regarded by some as an accounting trick which holds no economic significance. Others argue that it has specific legal significance because the Treasury securities it holds are backed by the “full faith and credit” of the U.S. government, which has an obligation to repay its debt. It is important to note, however, that while the Treasury guarantees the interest and principal payments it makes to the Social Security Trust Fund, the benefit payments made from the Social Security Trust Fund to American retirees have no guarantee at all. The Social Security Administration’s authority to make benefit payments as granted by Congress extends only to its current revenues and existing Trust Fund balance, i.e., redemption of its holdings of Treasury securities. Therefore, Social Security’s ability to make full payments once annual benefits exceed revenues depends in part on the federal government’s ability to make good on the bonds that it has issued to the Social Security trust funds. The federal government’s ability to repay Social Security, in turn, is contingent on fiscal policies taken today (which have tended to increase deficits and the percent of the budget spent on interest and principal payments) and in the future. With the reduction in our workforce (those who pay into Social Security) in relationship to those who collect Social Security the current system is unsustainable and will go broke in a few years. Currently the unfunded liability (promised payments/services for which money has been collected but is not available) of Social Security is in excess of 14 Trillion dollars, the Prescription Drug program is in excess of 18 Trillion dollars and worst of all Medicare is in excess of 107 Trillion dollars.

Posted by: Sandcrab1612 | February 6, 2010, 7:57 pm 7:57 pm

Pelosi is a hypocrite for spending money we don’t have? Just her?
That is ridiculous, ConservativeInNebraska.
It is the Republicans that have the hypocrisy thing down pat. They raise the hue and cry about Democrats “tax and spend” — but conveniently forget their long history of “borrow and spend”!
I tell you something and everyone of you who cry about spending and national debt need to pay attention.
The difference between borrow and spend and tax and spend is the latter has a way to pay the bill!
Yes, we all have to contribute — and we do get to vote and be involved in demanding ALL our reps (D) and (R) — make responsible choices in spending.
There has to be spending to run a country (think defense, for one) — what we all should be asking for is careful accounting and oversight, not some crazy idea that the spending can just stop and America just sails along… that’s so ridiculous, it’s like saying YOU should stop all spending in your personal life.
Think about it.

Posted by: matthewmark | February 6, 2010, 8:05 pm 8:05 pm

In June 2008, the World Economic Forum ranked banking systems as per their soundness, reliability if you prefer. Canada’s strictly regulated system ranked first. US banking system: 40th, coming after even small African nations. Canada advanced about 10 billion in loans to Canadian Banks to soften the blow from losses due to “ABCPs” or sub-prime loans bundled into securities. No Bank failed, credit remained available without interest rates going significantly up. 20% of the “stimulus funds” enacted in Canada went to bailout Canadian subsidiaries of GM and Chrysler. As far as Corporate taxes go, the statutory rate is 35%, the effective rate for the 275 Fortune 500 companies with avalable data show the effective rate varies between 1,6 and 27,7%. Accelerated depreciation, sectorial tax credits, off-shore tax-sheltering, stock options – most of which do not exist in most other countries – all make the illusion of high corporate taxes just that, An ILLUSION. —- Eighty-two of the 275 companies, almost a third of the total, paid zero or less in federal income taxes in at least one year from 2001 to 2003. In the years they paid no income tax, these companies earned $102 billion in pretax U.S. profits. But instead of paying $35.6 billion in income taxes as the statutory 35 percent corporate tax rate seems to require, these companies generated so many excess tax breaks that they received outright tax rebate checks from the U.S. Treasury, totaling $12.6 billion. These companies’ “negative tax rates” meant that they made more after taxes than before taxes in those no-tax years.—– Corporate taxes made up 20% of Federal Revenues in the 60′s, now, they account for less than 6%. Guess why the US is broke…

Posted by: treblig56 | February 6, 2010, 8:09 pm 8:09 pm

The Thrift Savings Plan (TSP) used by Congress and federal employees consists of six different funds in which the participant can choose to invest their money in. Participants can choose to put all of their investment into one particular fund, split between different funds and can move their investment from one fund to another as they desire thus giving them control over the performance of their investment. In the case of the current proposal the money you invest would be deducted from your wages just like the current Social Security. The funds are as follows from safest to riskiest:
G Fund (Government Securities Investment Fund) – the G Fund offers the opportunity to earn rates of interest similar to those of long-term Government securities but without any risk of loss of principal and very little volatility of earnings. The objective of the G Fund is to maintain a higher return than inflation without exposing the fund to risk of default or changes in market prices. The G Fund is invested in short-term U.S. Treasury securities specially issued to the TSP. Payment of principal and interest is guaranteed by the U.S. Government. Thus, there is no “credit risk.” The interest rate resets monthly and is based on the weighted average yield of all outstanding Treasury notes and bonds with 4 or more years to maturity. Earnings consist entirely of interest income on the securities. Interest on G Fund securities has, over time, outpaced inflation and 90-day T-bills.
F Fund (Fixed Income Index Investment Fund) – the F Fund offers the opportunity to earn rates of return that exceed those of money market funds over the long term (particularly during periods of declining interest rates), with relatively low risk. The objective of the F Fund is to match the performance of the Barclays Capital U.S. Aggregate Index, a broad index representing the U.S. bond market. The risk of nonpayment of interest or principal (credit risk) is relatively low because the fund includes only investment-grade securities and is broadly diversified. However, the F Fund has market risk (the risk that the value of the underlying securities will decline) and prepayment risk (the risk that the security will be repaid before it matures). Earnings consist of interest income on the securities and gains (or losses) in the value of securities.
C Fund (Common Stock Index Investment Fund) – the C Fund offers the opportunity to earn a potentially high investment return over the long term from a broadly diversified portfolio of stocks of large and medium-sized U.S. companies. The objective of the C Fund is to match the performance of the Standard and Poor’s 500 (S&P 500) Index, a broad market index made up of stocks of 500 large to medium-sized U.S. companies. There is a risk of loss if the S&P 500 Index declines in response to changes in overall economic conditions (market risk). Earnings consist of gains (or losses) in the prices of stocks, and dividend income.
S Fund (Small Capitalization Stock Index Investment Fund) – The S Fund offers the opportunity to earn a potentially high investment return over the long term by investing in the stocks of small and medium-sized U.S. companies. The objective of the S Fund is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index, a broad market index made up of stocks of U.S. companies not included in the S&P 500 Index. There is a risk of loss if the Dow Jones U.S. Completion TSM Index declines in response to changes in overall economic conditions (market risk). Earnings consist of gains (or losses) in the prices of stocks, and dividend income.
I Fund (International Stock Index Investment Fund) – the I Fund offers the opportunity to earn a potentially high investment return over the long term by investing in the stocks of companies in developed countries outside the United States. The objective of the I Fund is to match the performance of the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) Index. There is a risk of loss if the EAFE Index declines in response to changes in overall economic conditions (market risk) or in response to increases in the value of the U.S. dollar (currency risk). Earnings consist of gains (or losses) in the prices of stocks, currency changes relative to the U.S. dollar, and dividend income.
L Funds (Lifecycle Funds) – the L Funds diversify participant accounts among the G, F, C, S, and I Funds using professionally determined investment mixes (allocations) that are tailored to different time horizons. The L Funds are rebalanced to their target allocations each business day. The investment mix of each fund adjusts quarterly to more conservative investments as the fund’s time horizon shortens. The objective of the L Funds is to provide the highest possible rate of return for the amount of risk taken. Investing in the L Funds is not a guarantee against loss and does not eliminate risk. The L Funds are subject to the risks inherent in the underlying funds, and can have periods of gain and loss. The L Funds’ returns will be approximately equal to the weighted average of the G, F, C, S, and I Funds’ returns. Earnings are calculated daily, and there is a daily share price for each L Fund.
The G and F funds are fixed income low risk options while the C, S and I funds are stock funds tied to the performance of specific market indicators which encompass a large portion of the market ensuring that not all money is invested in any one area. L funds are weighted between the other funds based on the approximate year you plan to retire. The assets of the G Fund are managed internally by the Federal Retirement Thrift Investment Board. The assets of the F, C, S, and I Funds are managed by outside investment firms. The Board currently has contracts with BlackRock Institutional Trust Company, N.A. to manage the F, C, S, and I Fund assets. BlackRock invests the assets of the F, C, S, and I Funds into commingled trust funds in which the assets of many tax-deferred employee benefit plans are combined and invested together. The F, C, S, and I Funds remain invested in the BlackRock funds regardless of the performance of the securities markets. The BlackRock funds in which the F, C, S, and I Funds are invested are index funds, or passively managed funds, each of which has a portfolio based on the composition of a market index. The L Funds are invested in the five individual TSP funds based on professionally determined asset allocations.
From the above most of your fears appear to be baseless as the choice of companies in which the government administered funds is placed in is driven by specific guidelines for each fund. This is very similar to where I have my money invested in a managed stock fund (the fund managers choose where to invest and typically have around 100 different stocks from various sectors so that the fund is protected from bubbles in a single area which could be bad. Even over the last 18 months I have only seen around a 10% drop in value of the entire fund) Additionally I cannot see them switching everyone at once to this program, I envision a phase in period where those just entering the work force would be 100% in the new program and those near the retirement age would remain 1005 in the current system, a sliding scale based on age would most likely be used.

Posted by: Sandcrab1612 | February 6, 2010, 8:30 pm 8:30 pm

Sandcrab1612 | Feb 6, 2010 7:57:37 PM
And how taking money out of a system that is “actuarially broke” going to fix it? GOP plan is Run for the hills while there is money in the kettle, and leave the poor saps who cannot bear the risks of the market figure how to fund the remaining disaster WE have created by underfunding it for decades?

Posted by: treblig56 | February 6, 2010, 8:57 pm 8:57 pm

Sandcrab1612 | Feb 6, 2010 8:30:49 PM: “The choice of companies in which the government administered funds is placed in is driven by specific guidelines for each fund.” — And how would guidelines prevent the government board from choosing either sectors of the economy or comparable equities based on political gain? My problem is twofold: As I just wrote, it leaves the poorer to stay in the sinking boat while the richer leave it taking with them the dinner plates and the glassware. The other part is that those funds, while following guidelines, remain very vulnerable to political and lobbying pressures, not so much as in yield, although this may become an issue, but as who gets the money! We’re not talking chump change here, there will be huge pressure! Just look back at Medicare Part-D, that was just 686 billion$ over 10 years, we are talking 1 Trillion$ a year – ballpark figure – !

Posted by: treblig56 | February 6, 2010, 9:10 pm 9:10 pm

Who do we run to when it’s time to foreclose on America? At some point we have to stop the spending and the borrowing. If you keep borrowing from a person who hates you, and you know they hate you, then you are asking for some serious trouble.
The Chinese and the Saudis are patiently waiting as they continue to finance our addiction to irrelevant “stuff.” Just like all the folks, a few years ago, who were making $45,000 a year; yet, went and purchased $500,000 homes; then, because they had the new home, went out and bought all new furniture and a new car – all on credit. Then the foreclosure on the home and the repossessions of the furniture and the car arrived. Left the folks almost crazy. Now, I see’em walking around talking to telephone posts; all beetie-eyed and sad looking.
Pay attention to the sayings of old folks: “You can run but you can’t hide,” and “You can’t make a race horse out of a donkey.”

Posted by: SelmaAla | February 6, 2010, 9:18 pm 9:18 pm

Rep. Cleaver, did you have a good time in Copenhagen? As one of your constituents, I want to make sure you had a good time with Pelosi. How soft was that $2200 a night room’s bed?

Posted by: stevemb12 | February 7, 2010, 2:16 am 2:16 am

The current democrat has been in office one year – somehow I think he deserves a little bit longer to turn the ship of state around.
Who we voters really need to pay attention to is Congress. Republicans were the party of snore under the Bush years, our financial position rapidly eroded, the recession began in 2007.
It takes money to turn it around and to suddenly come awake and start screaming about the money used to pull us back from the precipice is foolish.
Tax cuts for big business are part of what eroded away the governments ability to cover infrastructure – like the military, like our bridges, roads, electric networks, water and so on.
Additional changes are needed and this representative’s proposals need to be mulled over – but all of them need to pull together to tackle the health care bill and GET IT DONE.

Posted by: trueblue | February 7, 2010, 5:39 pm 5:39 pm

Justsad – Since you seem strong for health care would you please explain to me exactly which one of the enumerated powers of the legislative branch give the federal government the right to fund/provide health care/insurance to the public.
Hint try Article 1.

Posted by: Sandcrab1612 | February 8, 2010, 12:16 am 12:16 am

Trueblue – You said ”The current democrat has been in office one year – somehow I think he deserves a little bit longer to turn the ship of state around. Who we voters really need to pay attention to is Congress. Republicans were the party of snore under the Bush years, our financial position rapidly eroded”.
Let’s look at the debt of the federal government since January 19 2001 (the day Bush took office), for comparisons I have chosen the same day or the first day listed after the 19th is on a weekend. When Bush took office the debt of the federal government was $5,727,776,738,304.64 and a year later (2002) it was $5,924,540,106,802.70 (an increase of $196,763,368,498.06 or an increase of 3% from the past year). A year later (2003) the debt was at $6,387,841,175,651.97 (an increase of $463,301,068,849.27 or an increase of 8% from the past year. A year later (2004) the debt was at $7,006,834,072,435.49 (an increase of $618,992,896,783.52 or an increase of 10% from the past year). A year later (2005) the debt was $7,613,772,338,689.34 (an increase of $606,938,266,253.85 or an increase of 9% from the previous year). A year later (2006) the debt was $ 8,176,948,650,558.59 (an increase of $563,176,311,869.25 or an increase of 7% from the past year). A year later (2007) the debt was $ 8,675,085,083,537.48 (an increase of $498,136,432,978.89 or an increase of 6% from the past year). A year later (2008) the debt was $ 9,191,074,962,157.16 (an increase of $515,989,879,619.68 or an increase of 6% from the past year). A year later (2009 when Obama took office) the debt was $ 10,626,877,048,913.08 (an increase of $1,435,802,086,755.84 or an increase of 16% from the past year). A year later (2010) the debt was $12,322,107,592,352.90 (an increase of $1,695,230,543,439.90 or an increase of 16% from the past year).
As can be seen the large increases have come under the Democratic controlled Congress. The President does not initiate spending bills of the Federal Government Congress does. The President submits a desired budget to Congress and Congress writes the spending bills and after passing both houses submits the bills to the President where he can sign or Veto the bill. As the Democrats took over the majority in both houses after the 2006 elections (sworn into office in January 2007) they had control of the government purse strings for the 2008 and beyond budget, also as a Senator, Obama had the opportunity to voice his concerns on spending when he voted on the budgets while he was serving in the Senate.
During his eight years as President, the administrations overseen by Bush increase the debt by a little less than 5 Trillion dollars, on his present course the administration of Obama is set to pass this rate of spending in less than four years in office. Spending by the federal government does not turn the economy around. Private industry hiring for jobs is what turns the economy around. The government needs to look at what will cause private industry to begin hiring (i.e. are government regulations costing money which could be used to expand business or are government taxes and fees costing money which could be used to hire and expand business. Adding government employees is not the answer as it provides a short term job with no long term expectation without having to get the funds from a tax or fee placed on business.

Posted by: Sandcrab1612 | February 8, 2010, 1:11 am 1:11 am

Social Security should have been made private decades ago. If that would have happened I would have retired at 50 with millions in the bank. Also all that money that has been squandered by congress would instead have been pumping up our economy.
Social Securiy and the Post Office are shining examples of why government run health care would be the straw that breaks our countries back.

Posted by: Marc | February 8, 2010, 6:20 am 6:20 am

So Rs believe that PRIVATIZING SOCIAL SECURITY is a great deal. Its a Safety Net, not a roulette wheel; a concept that in 70 years that Rs have never quite understood.
I truly hope that Rs run on Privatizing Social Security in Nov. Response: simply run commercials showing the daily drops in the DOW of 900 points as in 2008 and ask the voter if that R Congressman then has a bailout plan to replace the trillions that seniors could potentially lose when the DOW drops and they see their monthly Social Security checks cut in half. As a housing proposal Rs should next propose building Hooverviles for senior who gamble and lose with their R gift that keeps on giving: PRIVATIZING Social Security.
Even W realized it was a boneheaded idea, but we thank R leadership for that gift anyway.

Posted by: Ira | February 8, 2010, 10:58 am 10:58 am

Hey Mr. Conservative; do you have room for your parents to move in with you when they lose their Social Security in the stock market.
Again exactly what is it about the concept of Safety Net, which is precisely how FDR created Social Security, that you and Rs don’t understand? Read a little history if you believe that SS should be invested in the stock market. That concept was urged 70 years ago by Andrew Mellon.

Posted by: Ira | February 8, 2010, 11:07 am 11:07 am

Mr. Conservative: I have a great suggestion who should be investing your Social Security for you and your R friends. His name is Bernie Madoff.

Posted by: Ira | February 8, 2010, 11:12 am 11:12 am

Pelosi is ruining the economy? interesting. You do know that W and his minions pushed through 2 trillion in unfunded policies; Iraq, Medicare Part D and the trillion dollar tax cut.
You are also aware that the DOW has risen 40% since Pelosi and Obama’s began and you do know about Phil Gramm’s bill to end Glass Stegall?

Posted by: Ira | February 8, 2010, 11:16 am 11:16 am

Hey reaganfan if Privatizing SS and raising Medicare eligibility to 70 is such a grand idea, then why is R leadership quietly trying to squelch it.
Once agin Rs take the Ryan pledge and urge both. I will gladly pay for your web site and petition to Privatize and raise Medicare eligibility age. Please, please do so.

Posted by: Ira | February 8, 2010, 11:36 am 11:36 am

Join the Udall movement for the Senate Constitutional Option.
Its time to finally give Sen. McConnell the Up or Down vote he so vociferously demanded in 2005.

Posted by: Ira | February 8, 2010, 11:55 am 11:55 am

Listen to Pelosi and let the great Ponzi scheme die.

Posted by: bob | February 8, 2010, 12:28 pm 12:28 pm

Pelosi is the biggest looser in the Congress.

Posted by: Rick McDaniel | February 8, 2010, 12:43 pm 12:43 pm

Rick so you don’t like Ds.
Why should we care? Exactly what has Mitch McConnell and cantor offered this country other than obstructionism?

Posted by: Ira | February 8, 2010, 12:47 pm 12:47 pm

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