“in my book The Bubble and Beyond … The idea is the same one that had pension capital—pension fund capitalism in the 1950s. From the time that General Motors started its pension funds, there's been a tidal wave of pension fund contributions into the stock market. That created a stock market boom in the '50s, in the '60s, into the '70s.
“[T]he idea of privatizing Social Security is to give Wall Street the biggest clientele that it's got in history. It will be the biggest giveaway in history to Wall Street.”
“Wall Street banks like Citicorp and Bank of America can treat its customers like counterparties. They can gouge them on fees. They can then stick them into stocks that they then all of a sudden—
“the day will come when more people begin to retire than pay into the plan, and at that point, the stock markets are going to begin to go down. Then all of a sudden the Wall Street speculators can dump the stocks, pull their money out, and leave the Social Security retirees holding an empty bag, and the government will say, well, “that's the madness of crowds.”
“it's not the madness of crowds. It's a Wall Street scam. And that scam has been put in place by an enormously well subsidized propaganda campaign to convince people that it's necessary for them to become suckers for the Wall Street money managers.
JAY: “create Social Security as a private fund that people can invest. And I thought Obama and Biden said they would not support that.”
HUDSON: “Yeah, This is a Republican plan. I don't think it's the Democratic plan to support privatization. When the Republicans say look at Chile, that's a wonderful thing to do. Every single pension plan put in by Pinochet's party at gunpoint in the 1970s, every one was looted by the employers and by the banks and went bankrupt by the end of the 1970s. That's why the Chilean voters threw out the party and voted for the socialists, who were against doing this. So all you have to do is look at Chile.”
“But of course the Republicans are looking at Chile and say, my god, we can put all of the private money into the pension funds to be Social Security funds to be invested, and then we can steal it all, we can steal trillions of dollars, we can get richer than we've ever dreamed of if we can only have the right to steal. And that's what this is. Talking about Social Security reform is theft, and that's what it should be called, theft.”
Fiscal Cliff An Artificial Crisis
November 25, 2012
For background information read Naomi Klein's: