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Letters to the Editor

More facts

March 27, 2012

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To the editor:

I both commend and second the “pertinent facts” submitted by Walt Hull and published in the March 22 Journal-World, an excellent summary of truths too few people know about, much less care about.

I’d like to add one more item of equal truth value to Hull’s list: a clip from an article in the March 22 Kansas City Star: “A statistical analysis of 36 years of monthly, inflation-adjusted prices and U.S. domestic oil production by the Associated Press shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump. If more domestic oil drilling worked as politicians say, you’d now be paying $2 a gallon for gasoline. Instead, you’re paying the highest prices ever for March.” (p. A7).  The simple truth is that the current status of stability vs. tensions in the Near and Middle East at any given time, compounded by speculation in the world oil market, influences prices at the pump many times more than any amount or lack of domestic U.S. production.

Hull did omit, however, the other side of the story about government “borrowing” from Social Security. It’s my understanding the Social Security law requires that taxpayers’ payments be invested to earn a return for the benefit of the taxpayers, but that same law permits such investments only in the safest possible vehicles in existence: i.e., U.S. government securities. So one man’s borrowing from Social Security is another man’s following the law in order to provide maximum protection for the taxpayers’ investments.

Comments

Fossick 2 years ago

"but that same law permits such investments only in the safest possible vehicles in existence: i.e., U.S. government securities"

Oh, please. So the government 'invests' SocSec earnings in its own debt obligations? Jafs is exactly right. That's a shell game, no different than writing yourself a check for a million dollars and then claiming that since you now have a million in assets, you're a millionaire.

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jafs 2 years ago

The problem with "investing" the SS trust fund in government securities should be obvious.

Where will the money to pay the government bonds + interest come from?

It's like borrowing money from your left hand and paying it back with the right one with interest.

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somedude20 2 years ago

Like, we need to do something about this like oil problem right now! Like I went to watch like the Hunger Games , like15 times this past weekend, and like had to pay an extra like $6.00 each time like for the butter-like oil they use to grease up the corn like. Like, this stinks and sucks and all!

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George Lippencott 2 years ago

Interesting. Apparently oil does not respond to supply and demand according to the research you referenced as posted by the Kansas City Star. Of course the increases in prices because of world tensions that you referenced is then not related to supply and demand as most smart people believe.

As to social security we may wish to remember that the same people that frame the issue as protecting the trust fund are the people who have spent it on other government activities. It is also the same people who do not want to face the mathematics of now repaying the trust fund as it goes into a net payout mode. Perhaps actual securities would now avoid having to raise taxes to pay for the program

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its_just_math 2 years ago

Why does the looney green crowd say that big oil is in bed with government (not even considering Obama's Solyndra and other green money pit debacles) when for every gallon of gas you buy, the government taxes it at about 14%, or about .50 a gallon right now?

Do the math: at almost 400 millions gallon a day US gas usage-----that's a big pile o' money for Uncle Sam.

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Liberty_One 2 years ago

Actually Hull's piece was full of opinionated conclusions and no facts at all.

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Richard Heckler 2 years ago

Politicians may well be the most uninformed group in America.

They are too busy chasing down special interest campaign money and finding out what they are to tell we taxpayers..... not exactly a fact finding mission.

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