Senator Obama, AKA "Bambi"

February 20, 2008

Senator Barack Obama

701 North court Street

Marion, Illinois 62959

Senator Obama,

It’s halfway through the 4^th quarter. You have an 18 point lead and the ball. Since you were an 18 point underdog the view can only get better.

I would like to offer you a policy suggestion. Perhaps it can declaw some of your critics, particularly those who cavil about your lack of business experience.

The fundamental problem with Social Security is the calendar. Crudely put, more people are living longer. In 1936 each annuitant had some 30 people contributing to the common pot. The number now is about 3 to 1.

One of the reasons why IRAs and 401Ks are so popular is that younger people know that while it’s good to hope they know that by the time it’s their turn there will be nothing left in the well.

One answer to the problem is to increase the amount of money flowing in to the pot.

Have you ever heard of TIAA-CREF?

Have you ever heard of CALPERS?

How about the Illinois Public Employee Retirement Fund? Your wife works for a hospital. I bet she knows about it. You wife probably contributes to it.

Massachusetts, New York, New Jersey, Pennsylvania, Ohio, Florida, Texas, all have them. In fact, every state has them. Many states have several funds.

Social Security invests in really good United States Government bonds.

Why not “suggest” that these funds invest all of their assets in the really good United States Government bonds that Social Security invests in?

It may surprise you but the total of the above named funds have assets in excess of two trillion dollars. That’s $2,000,000,000,000. That’s a hellacious amount of money.

“But wait”, as the TV pitchman says, “There’s more.”

When the money comes in to the Treasury it is immediately transferred to the operating account. That’s where the bills get paid.

The Treasury issues a chit in the form of really good Treasury bond. That bond goes into a “lockbox” with the investor’s name on it.

It then becomes income to the Government.

Here’s the bonus. You won’t have to raise taxes. You’ll have more money than George Soros and the wife of Senator Jay Forbes Kerry, the madcap Gypsy lady Teresa.

You can spend it on whatever you want.

I personally would like “Midnight Basketball” fully funded and given a fighting chance to succeed.

I can’t image any state employee objecting to having his retirement funds ruin by the United States Government. The bonds are guaranteed. There is no possibility of a sub-prime crisis hitting these gilt edged puppies.

I haven’t fully fleshed out the idea, particularly the “suggesting” part. Call me audacious but I hope you’ll be able to convince the Congress and the people why it must be done.

Now that you’re on your way I hope you won’t mind if I send you ideas from time to time on other policy matters.