(U.S. Treasury Secretary) Paulson warns on spending

[sabra]

http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-08-01T160220Z_01_N31334032_RTRUKOC_0_US-ECONOMY-PAULSON.xml&WTmodLoc=NewsHome-C3-businessNews-2

Paulson warns on spending

NEW YORK (Reuters) - U.S. Treasury Secretary Henry Paulson on Tuesday identified rising costs for financing long-term health and retirement systems as the key challenge to economic prosperity, and renewed statements backing a strong U.S. dollar.

The former Goldman Sachs leader, in his first major public address since taking the reins at Treasury, laid out many of the same positions as predecessor John Snow, including that on currencies.

"I believe that a strong dollar is in our nation's interest and that currency values should be determined in open and competitive markets in response to underlying economic fundamentals," Paulson told a Columbia University audience, renewing a statement he made earlier in an interview on CNBC television.

...

"It would appear that what we are seeing is the economy transitioning to a more sustainable rate of growth, similar to the pattern we saw in the mid-1990s," he said.

[Warpy]

1. Funny, these guys never talk about the black hole

known as the Pentagon, a five sided monster that sucks money out of us and wastes most of it on outmoded systems just so it can claim it needs more money. Too much of its budget is a welfare system for outfits like Carlyle, Bechtel and Halliburton's KB&R.

Nobody ever suggests putting THEM on a diet, only on slashing benefits for the old, the young, and the sick.

[mom cat]

3. Nor do they criticize the trillions of dollars lost by the Pentagon!

Just the retirement funds that Uncle Joe and Aunt Sally slaved a lifetime for! :grr:


Edit for heat induced episode of dyslexia!

[chill_wind]

6. mom cat, t'will make your blood boil to read about the Paulson Payoff

if you haven't.

http://www.huffingtonpost.com/david-sirota/the-paulson-payoff-at-the_b_24379.html

[mom cat]

8. There are a few people in the House who seem to be honest, but

the senate is so bought and paid for.

[chill_wind]

7. Paulson's bonus from Goldman-Sachs--- $18.7 million

for six months of service. But we can't raise the minimum wage for the working class, many working 2 jobs just to keep up with creditors, continuously rising energy costs, hefty health insurance premiums (if they can pay them at all) and still put food on the family.

The dichotomy is OBSCENE.

[MGKrebs]

12. $18.7 MIL = a 50 cent per hour raise for 17,980 years.

Or, a 50 cent per hour raise for 1 year for 17,980 people.
Or, a 50 cent per hour raise for 10 years for 1,798 people.

[cliss]

2. Ho hum....yawn (stretch)

No sense of urgency here, is there??

Look at this statement, "I BELIEVE that a strong dollar is in our nation's interest".

NO YOU'RE KIDDING.

OF COURSE a strong dollar is in our best interest. We will become ZIMBABWE without it. No offense to Zimbabwe, they probably have better money management than we do in Washington.....

[badgervan]

4. The Real Vultures in Bushmerica....

Over 70 billion in lost tax revenue not paid by the super rich. Corporate welfare through the roof. Tax break after tax break for the super rich. Estate tax on last legs. Yeah - those old, disabled and sick folks are ruining our country, all right.

[chill_wind]

5. Hey-- "There's simply no equal to Hank".

The guy was unanimously approved (voice vote) by the Senate Finance Committee.

The rubberstamp ceremony took all of about 3 agonizing hours.

"In the world of finance and international markets there's simply no equal to Hank," said Sen. Charles Schumer, D-N.Y., who praised Paulson's experience in international finance and relationships with Chinese business leaders and government officials. "We need someone who is seasoned. We need someone who knows markets," Schumer said.

Lots of stuff about the Paulson Payoff at the Bush Treasury Dept and POGO (Sirota piece):

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x2719534

Oh he's "seasoned" alright....

[MysteryToMyself]

9. Paulson focuses on the financing

"Paulson on Tuesday identified rising costs for FINANCING long-term health and retirement systems as the key challenge. The financing of health and retirement systems are not the problem. Workers pay generously for the financing. The Bushites set it up to where there were no bids for medical charges...thus letting them have free reign.

The challenge is how to stop the Bushites from raiding our retirement systems and surplus Social Security to pay for the war and government expenses, while the businesses rake in the big bucks with low taxes.

Health costs are the problem with Medicare, not the financing. Costs are going up more than anything else. To throw Medicare costs to market forces was a good way to ruin a middle class program. Those who are on a payroll pay for their retirement Social Security and Medicare from the first day of work to the last day of work.

Both programs work like insurance, it doesn't matter when you draw it as long as it is there when you retire or become disabled. Many have worked for 50 years and paid into FICA for Medicare and Social Security when they retire.

Paulson wants to insure that Social Security is trashed so Goldman Sachs and their ilk can make money off our retirement. I invest in a 401k but I wouldn't want my retirement to depend on it. I really haven't made a profit yet and have been investing since 1992.

Think how people would treat workers if their retirement depended on the profit. We would have wars over copyrights. The sad truth is the market will be maxed out about the same time they have predicted a problem with funding Social Security. The market can't go up forever, now, can it?

[donkeyotay]

10. So, let's hear about the GOP plans BEFORE the election

The difficulty "financing" social security. When Greenspan and Reagan fixed the system back in 1983, they said a surplus had to be built in so that the boomers would be covered. Since then, working people have paid in an extra $$$1.5 Trillion which has mostly been spent by Repubs on defense and tax cuts. They way I see it, they stole that money from the working class and gave it to the crony class. I want it back. And I don't want to wait quietly until after the election to hear about "entitlements." If George wanted us to keep more of our money, he should have cut payroll taxes.

[Lasher]

14. Payroll taxes are regressive.

That's one reason why Saint Ronnie raised them, and that's why Junior will never decrease them.

The Social Security trust fund has purchased Treasury bonds from the general fund. And the general fund has squandered all that revenue and more, mostly on tax cuts. The general fund is obligated by law to redeem these Treasury bonds when the revenue is needed by Social Security. The main thing we need to do to preserve Social Security as we know it is to block GOP legislative changes that would cut benefits to which SS recipients are currently entitled.

If they can gut Social Security, let's say by moving the minimum retirement age out until after most people would already be dead, then the trust fund's Treasury bonds would never have to be redeemed because existing payroll taxes would sustain the program forever. And presto, they will have effectively stolen the trust fund money, because the general fund would not have to redeem the Treasury bonds.

And where will all that money go? It's already been givenaway, in advance, to rich people, in the form of tax cuts. All we have to do is make them give it back when the Treasury bonds come due.

[barb162]

11. why doesn't he worry about the wild spending in Iraq?

Oh NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
Spending in Iraq? What spending?

[WhiteTara]

13. social security is the object of their desire

"So again, a simple question: With Goldman Sachs handing incoming Treasury Secretary Henry Paulson an $18.7 million bonus for six months of service, what is the company looking for in return? After all, Goldman Sachs has had a lot of business before the government that Paulson's Treasury Department has been involved in and can influence. Here are just a few factoids about the Goldman Sachs-Government connections that raise questions about the Paulson payoff:..."