Since the turn of the millenium, and at least two quarters of recession that our government failed to notice for a year, the Department of Labor has found it necessary to turn to its trust fund in order to pay unemployment and extended unemployment to those out of work.

Since the economy began to tank in 2001, everyone who pays income taxes has paid a total of $52.4 billion in double taxation and interest. Employers paid these taxes the first time. We all pay them when the trust is drawn down.

Here's the way it worked:

At the close of fiscal 2001, the Unemployment debit black hole account held $88.6 billion in bogus bonds. This was after $8.4 billion was withdrawn from the trust. You could say that this $8.4 billion dropped the previous year's balance to $78 billion but then in 2001 the fund received a surplus of $10.6 billion bringing it to a close of $88.6 billion.

Don't forget that the trust was paid annual interest simply by handing it more bonds. In 2001, the average interest paid against the previous year's balance was 6.356 percent which means the trust received an additional $5.5 billion that is included in the balance of $88.6 billion at the close of fiscal 2001 and would account for the big jump in May when the interest is paid.

The fiscal 2002 draw down also includes about $5.3 billion in interest plus the $20.4 billion reflected in the drop from $88.6 billion to $68.3 billion in holdings at the close of fiscal 2002.

Thus, for fiscal 2002 we've got withdrawals of $23.7 billion and from fiscal 2001 withdrawals of $8.4 billion for a total of $32.1 billion in double taxation and interest during these two years. Add on the fiscal 2004 draw down of $5.35 billion and you've got a total of $37.6 billion in double taxation.

The Pay-It-Again Sam scam is going on right now, as you read this. What do you think it will be like if and when Social Security must draw on its $1.55 trillion in bogus debt securities?