Saving our Social Security from insolvency is only one of the issues behind the current Sequester disaster. According to the National Association of Social Insurance, at the end of 2012, our Social Security surplus was $2.7 trillion dollars.
The 2011 2012 funding increase was 64.5 billion dollars.
This $2.7 trillion dollar surplus is invested in U.S. Treasury Bonds. In financial markets, our Treasury Bonds are considered an extremely safe investment as they are backed by the full good faith and credit of the United States.
We, the American people are full of good faith and credit. We finance our financial markets. In good faith we let you, our government representatives withhold a portion of our wages, a set aside for our Social Security, our retirements. But you replaced our cash earnings with U.S. Treasury Bonds backed by who else but the full good faith of we, the American people.
So as not to confuse realities, now we pay double, twice, you, reselling our Treasury Notes as they come due, while at the same time you, our Congress, including president Obama, want to squeeze our retirement money, so there is more for military expenditures in each of your congressional districts. This bait and switch corruption of our hard earned benefit; our retirement money, is not acceptable to we, the American people.
We foot the bill for your sweet pensions. You don't have any skin in our game. You cannot fiddle with our retirement and not say good-bye to your public offices.
You, elected to represent us, squandered our good faith on aircraft carriers to silhouette the seven seas, fighter planes too difficult to fly, and obsolete weapon systems to attack imagined foes, when our dollars could have been put to work in robust enterprises, with stock dividends, using our money to make money, to enhance our retirements instead of weapon system dead ends.
Had Social Security been let to invest our surpluses, taking barrel head positions in blue chips, and writing mortgages, buy-sell bubbles would not have blown up, Wall Street investment banks would have been kept honest by we, the people's presence in our financial marketplace and our government would not have had to form regulatory bureaucracies to govern the banks.
There is a non-partisan solution to which all can agree.
A new and innovative non-partisan financial instrument, the 2% U.S. Mortgage Savings Bond can solve the actuarial dead end street, that you, our Congress created, the selfie squandering of our money that truely was not yours to appropriate.
You, our representatives are going to make it possible, with a simple Act of Congress, for we, the people to purchase all bank held residential mortgages in U.S.A., according to very reasonable terms: $0.85 on the dollar for the good, $0.65 on the dollar for underwater upside-down bad, and $0.49 on the buck for the tick tock-sick, soon-to-be ugly foreclosures, this mass mortgage purchase accomplished with 2% U.S. Mortgage Savings Bonds, backed by the good faith of we, the American people.
We don't need to create a whole new agency to run this mortgage buy out. Social security has all the mainframe computers and we can trust the Social Security with our money. The Social Security agency does not take ten million dollar hooray-for-us vacations in Vegas.
The lenders shall present to our Social Security Administration our mortgaged property's payoffs, including their assessed valuations, for every house. The 2% U.S. Savings Bonds shall be issued to the homeowners, pay to the order of both homeowner and mortgage-holding bank.
The owners shall appear at their bank branches with their 2% U.S. Bonds, wait for a copy of their deed to come over the fax, and then, on the bank's computers, with a banker standing by, rewrite their mortgage at 10 to 30 years fixed rate of 4.75 to 7% interest, based on the owner's true credit rating.
The branches shall forward all paid off property deeds and rewritten mortgages to the Social Security Administration for safekeeping.
Upside down underwater re-mortgages at $0.65 shall carry a non-interest bearing 2nd mortgage bubble on the back end, not to be negotiated until the house is sold, down the road, insuring upside down homeowners retain reasonable equity upon sale.
When financial calamity strikes a household, the homeowner has the option of paying only interest every other month until the homeowners regain financial footing; so future home foreclosures in USA shall become a rarity.
The Social Security shall redistribute the 51 million mortgages, dividing good, bad and ugly amongst bank and federal credit unions in the same zip codes as the houses, for servicing, allowing the branches to use the principal in the first year's worth of payments, for re-loaning to independent small businesses in their neighborhood zip codes, to recapitalize Main St. This branch mortgage service will show a profit for the banks at the branch level.
But the 51 million monthly interest payments on the 51 million residential mortgages shall be deposited monthly by the branches with the Social Security, the interest spread in each mortgage, between 2% U.S. Mortgage Savings Bonds and average 4.75% fixed rate mortgages applied to drawing down our public debt, starting out with those Treasury Bonds gathering dust in the Social Security keyless entry lock box Congress originally shelled when they switched out the cash slice we allowed withheld from our pay.
Instead of marketing our savings bonds for more ready cash, as a Member of Congress, I'm going to move that Congress shall convert the 2.7 trillion in Treasury Notes sitting with Social Security into 2% U.S. Mortgage Savings Bonds which we, the people shall immediately put to work, beginning with our we, the people buy out of our mortgages from all the commercial lenders.
Regardless how our actuarial position appears, USA is the world's economic leader. We have the right to purchase our private debt with our negotiable U.S. Savings Bonds and apply the interest spread to drawing down our public debt, instead of those billions of dollars in interest, stuffing the pockets of bank stockholders.
The too-big-to-fail or jail banks who nearly brought world trade to a stand-still shall be cashed out, their golden opportunity, at the branch level, to get back into earning money the old fashioned way, lending dollars based on tangible goods and sweat equity, instead of credit swap paper bets where heads they win and tails the taxpayer's money is lost.
With breathing room for the middle class to grow, our economy will begin to grow again, a desire both political parties claim as their own. Social Security shall be saved. The 100 million voters in the 51 million houses, with better payments and foreclosure protection, will vote to reelect every single Member of Congress for as long as you care to serve!
Isn't job security your prime concern? We, the people are giving every Member of Congress a free reelection ticket! You are arranging for we, the people to pay ourselves for what is ours. We consider leaving you to stay in your jobs.
How many homeowners in your district? That is how many people will vote you out of office for your refusals to allow them to purchase their mortgage note from the bank with we, the people's public money and apply the interest spread to ending the national debt so their children inherit a better life!