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Chang, yolu are not entirely correct. The trust fund has T-Bills in it so as long as the US government keeps paying off its T-bills then the Trust fund will be just fine until 2052.
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Try http://wordforge.net/index.php for discussion and debate. -
No. The Trust Fund has IOUs in it. We will have to start issuing T Bills to it in 2012. Lots and Lots of them.“It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”
― C.S. Lewis, The Abolition of ManComment
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[qupte]If time allows, I'll try to throw in a Gay Marriage Question.[/quote]
Really? I was just kidding! Instead of a gay marriage question ask him either a) who he'd vote for The Poly Hall of Fame, or b) What he wants to add to the CIV4 listComment
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the chart I was referring to earlier, in case I read it wrong or he gets antsy
(from the Trustees Report summary)Social Security outgo amounted to 4.3 percent of GDP in 2003 and is projected to increase by just over one-half to 6.6 percent of GDP in 2078. Medicare's cost was smaller in 2003, 2.6 percent of GDP, but is projected to grow more than fivefold to 13.8 percent of GDP in 2078, when it will be more than twice Social Security's.
meet the new boss, same as the old bossComment
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A T-Bill is an IOU.Originally posted by pchang
No. The Trust Fund has IOUs in it. We will have to start issuing T Bills to it in 2012. Lots and Lots of them.Try http://wordforge.net/index.php for discussion and debate.Comment
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pchang- I haven't heard any economists who have supported your assertion there... so sorry, I don't think I can ask that question because it seems questionable.
I understand what you mean about periodic social security fund raids- but they do have money set aside (not as much as they should, but they do have some).-->Visit CGN!
-->"Production! More Production! Production creates Wealth! Production creates more Jobs!"-Wendell Willkie -1944Comment
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Social security invests its money int Treasuries- as far as all treasuries are "IOUS"", then pchang is correct, but unless the US plans to default on its debt obligations, the "trust fund" is there. Its the admin.s fault that it has decided not to save for the time it has to honor its debt, as opposed to rsiking bancruptcy (I can;t see how the government can reneg on the Treasuries it holds without leading to a complete collapse of the treasuries market).
We can blame the current execs for raiding tyhe pension fund to finance their pet projects.
Of course, the Bush plans does absoilutely zero to negate this problem, only adds 2 Trillion in extra borrowing, since benefits already promised, according to the admin. will not be cut.If you don't like reality, change it! me
"Oh no! I am bested!" Drake
"it is dangerous to be right when the government is wrong" Voltaire
"Patriotism is a pernecious, psychopathic form of idiocy" George Bernard ShawComment
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Q for Rick Santorum: Are you as big an ******* in real life as you appear to be on TV?To us, it is the BEAST.Comment
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Q: Why do you hate America so much?Comment
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OMG. The Trust Fund is not an asset account. It's a liability account. It should have never been called an trust fund. It's purpose is to keep track of what is owed to future beneficiaries. What is so freaking hard to understand about that?I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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*2Originally posted by chegitz guevara
Ask him what he thanks fo Dan Savage.
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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BTW, the SS "trust funds" contain virtually no T-bills (as GePap claims).
The SS trust funds actually contain special issue securities which are supposed to be redeemable at face value at any time. The US government might be able to default on them without defaulting on all T-bills. Given such a drastic step, however, the loss of confidence in the ability of the US government to repay its outstanding debts would likely lead to a collapse of the T-bill market anyway.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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The word redeem means to recover ownership of. Who is the US going to recover ownership from whether they are T-Bills or special issue securities?I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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I've never understood why Social Security is forced to invest its money solely in the federal government.
In Canada the Canada Pension Plan (CPP) and various provincial plans which perform the same functions that SS does wrt retirement benefits etc. all invest in a combination of private financial markets as well as buying government debt.
SS in the US has been used as an end-run mechanism to allow the federal government to borrow much more at lower interest rates than it would otherwise have been able to.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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That's right. It's not an investment. It's a way to use assets to cover expenses to lower your borrowing costs.Originally posted by KrazyHorse
SS in the US has been used as an end-run mechanism to allow the federal government to borrow much more at lower interest rates than it would otherwise have been able to.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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