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#7411
Steveo (Visitor)
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united states savings bonds Social Security Trust Fund  
Bushsucks < This e-mail address is being protected from spam bots, you need JavaScript enabled to view it wrote in message  LOOK, you fuckin' MORON: These IOU's from the general fund are GOVERNMENT LONG TERM BONDS. If placed in a lockbox along with their accrued interest, THE FUND WILL INCREASE IN SIZE, YOU DUMFUK!  If the interest rate is 5% and the fund has $3 trillion dollars in current assets (Treasury bonds) , in ten years these monies would grow to $4.9 trillion in principal and accrued interest. If the interest rate was 10% and the fund has $3 trillion dollars in current assets (Treasury bonds) , in ten years these monies would grow to $7.8 trillion in principal and accrued interest.  The higher the interest rate the greater the lockboxed trust fund. What you seemingly are incapable of realizing is that if government borrows from itself (which is what Treasury bonds are) and has to return the loan to itself with interest later, it is all a fiction. The total money has not increased. If you are still confused, let's say you borrow $100 from yourself, and promise to repay yourself $110 in a week. Seven days pass, and you pay yourself $110. Are you now $10 richer? I don't think so.
 
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#7412
wbarwell (Visitor)
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united states savings bonds Social Security Trust Fund  
Get CLUE ONE. You apparently don't know how a Government Bond works. The government does NOT borrow from itself . It issues NEW BONDS - say $10 billion dollars worth of 5% of 2014 , which are PURCHASED BY THE PUBLIC AND BY INSTITUTIONS.   These people PAY the Government MONEY - $10 billion dollars in this case, and the government gives them a piece of paper that says they will pay the holder $50.00 each year for each $1000 bond, and agree to pay back the $1000 principal in 2014. But what you are talking about is Social Security Trust Fund buying those bonds, not the public and not the institutions. In that case, government borrows money from the Social Security Trust Fund - and since it holds that money, it, in fact, borrows money from itself. What happens today is the government takes money from the Social Security funds and puts an IOU there. What *you* want to do is for the government to take money from the Social Security funds and put a different IOU - called bond there. What exactly is the difference? Can you explain that? Both are IOU s. Both are backed by the government. Both the government will renege on, if it really needs to do so. So - explain the difference. Back in 1983, the chief actuarial officer of SS pointed out that future baby boomers would so stress SS that SS could not run on a go as you pay basis. there would not be enough workers to support the baby boomers. So it was decided to raise SS taxes and invest the surplus to build up a retirement nest egg for the future baby boomer retirement. The GOP did not allow it to be invested as designed, but stole the surpluses.  SS now holds nearly $2 trillion in IOUS. It should have $2 trillion in surpluses, and invested wisely,  that at least should have doubled. Now we have debts.  Who's going to pay it off.  Retired Baby Boomers? The next generation?  Remember, it was pointed out that the next generation would not be able to keep up a pay as you go SS system.  How then can they pay off the massive SS debts and keep the system afloat? We are screwed.  And the GOP did it.  Two years running Senator Moynihan charged at the GOP to end these thefsts and two year riuinning, the GOP circled the wagons, slapped Moynihan down and kept stealing. Anybody who votes GOP is stupid and un-American. Not a single one of these GOP assoles in Congress has so much as lifted a little finger to end these thefts since Moyihan was shot down the last time in 1991. And to this day, they will not. The tragedy is, not only is there only IOUs left, but we also lost the amount that these surpluses, invested as designed, would have brought. We were robbed twice. And not single GOP House member or Senators cares. Not even a little bit. And they have no intention of stopping their thefts. None at all.
 
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