By Matt for the TIB Network:
Another
US Newswire press release:
Today, the American Shareholders Association (ASA) called on Sen. Jon Corzine (D-NJ) to end his campaign of distorting the facts on Social Security and his obstructionist stance towards the Social Security problem facing the nation.
Over the past several weeks, the Democratic Party has put Corzine out to be the lead attack dog on the Social Security issue, given his background from Wall Street. But this is exactly the reason why Corzine's rhetoric is so disappointing - because he knows he is misleading on the facts for partisan political advantage. In fact, research from his former employer, Goldman Sachs, actually rebuts Corzine's rhetoric. Furthermore, given his background at Goldman Sachs, it is even more disappointing that Corzine has not stepped up to the table to offer an alternative to fixing this problem. Instead, he just attacks and obstructs.
"Goldman Sachs research has found President Bush's Social Security reform plan would have very little effect on debt and interest rates," said Daniel Clifton, executive director of ASA. "I find it very ironic that the Democrats are propping up Corzine's Goldman Sachs credentials when in fact the professional research at Goldman has reached the exact opposite conclusion of Corzine's rhetoric."
According to Goldman Sachs research: "The additional net supply of Treasuries (adjusted for the assumed 20 percent allocation in the personal accounts) would amount to about 2 percent per year of the outstanding supply, or 0.8 percent of GDP. Standard bond market models such as our GSWIRE model imply that such an increase in budget deficit pushes up yields by no more than 20 basis points. This would equate to a price decline of only about 1-1/2 percent given the 10-year note's current duration. In fact, this is probably an upper bound." Clearly a 20 basis point increase is not the end of the world and Corzine knows this. Instead he twisted Federal Reserve Chairman Alan Greenspan's words yesterday to score political points.
"You would think that given his background and the results of the last election, Sen. Corzine would want to be part of the solution, but instead he is now exacerbating the problems," continued Clifton. "The politics of "no" resulted in Sen. Corzine losing four seats in the United States Senate last election cycle when he served as Chairman of the Democratic Senatorial Campaign Committee. More importantly, if he is the expert he proclaims to be then he should be putting forward a plan. Instead, he is nothing more than an ostrich placing his head in the sand, failing to recognize the nation's trillions of dollars of unfunded liabilities."
The American Shareholders Association is a non-partisan, not-for-profit organization dedicated to analyzing public policy affecting shareholders. For more information please contact Daniel Clifton at (202) 549-7803 or by email at dclifton@americanshareholders.com.
This debate is just getting fired up, folks...
Islamofascism Delenda Est!
