"The Bubblemeister" and "The Magus"

As we have said. Former Federal Reserve Bank Chairman Alan Greenspan is better termed "bubblemeister" than "maestro." Both words mean skilled and masterful. The connotation of "meister," which may appear playful, is deadly serious, at least in economic terms, and especially as applied to average tax payers as we shall see. Presently, we should apply a third term to the former Fed chairman: Magus, meaning "magician, sorcerer" (Concise Oxford English Dictionary).

Quick! Identify the following phrase. Federal Old Age Survivors Insurance Trust Fund. That's correct, another name for the original Social Security Act passed in the 1930s. Some historians have called the Act the single greatest piece of legislation ever passed, particularly because of the unprecedented security it provided elderly, retired Americans. Although today it cannot be used exclusively to ensure financial security upon retirement, it may still be called a cornerstone for retirees.

Some background. Funding the Social Security Trust Fund had amounted to 2% of the payroll in its beginning, and the Fund has routinely operated with a surplus. In fact, "taxes (still) provide approximately $200 billion more in receipts than are paid out, which reduces the reported deficit. Note: This situation will reverse in 2017 when Social Security payments are projected to exceed revenues" (Social Security Trustees Report).

As the years wore on the increasing number of retirees and burden of the war in Vietnam by the 1960s contributed to a general budget deficit (the United States Operating Budget). The temptation was too great: From 1969 forward the Social Security Trust Fund surplus was used to make up the short fall in the general federal budget even though by 1990 the Budget Enforcement Act forbade such plundering. Pretty good sleight of hand, a sort of black magic done by others.

Yet Alan Greenspan must be called the sorcerer, the Magus, for every year in Greenspan's tenure except 1999 and 2000 the Social Security surplus was used and spent in the federal budget converting the wholesome tax-in-advance system into a corrupted pay-as-you-go system further robbing the Social Security Trust Fund of its cash. Greenspan supported the magical looting. But how magical? Because Alan Greenspan, while supporting tax cuts for the wealthy, used his magisterial position to favor putting the average worker into the position of subsidizing the budget deficit. He accomplished this by giving magisterial testimony in the halls of Congress before all, with few noticing which shell contained the pea. Certainly the workers couldn't see as they were, as usual, in the back part of the room. They could only vaguely approve as they perceived someone was performing great feats of magic over the economy in the front part. Prestidigitation not even required from such a distance. (Greenspan's Fraud, Ravi Batra).

Further note: Income tax on the top bracket was 70% in 1980, and fell to 28% by 2000. All during the Magus' tenure. What a performance.

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