that's changing some... just look at OWS.
that's changing some... just look at OWS.
Very popular bunch.
they're like a lazy bonus army
Someone please convince me that David Stockman is wrong and Hobbes is right about the SSI trust fund being real.
http://www.businessinsider.com/david-stockman-youd-be-a-fool-to-hold-anything-but-cash-now-2012-3
the way i've seen it laid out:
the "trust fund" is almost a misnomer. as it's an accounting entry for debt. OAS/DI payments come out of the treasury and the SOT converts OAS/DI bonds to "pay" for it. FICA taxes are converted into GIS bonds and the cash goes into general revenue.
though the treasury funds to pay the OAS/DI checks start as t-bills, so you just end up swapping GIS bonds for t-bills in the long run.
Well technically just about everything except the cash in your pocket or something tangible like gold is an accounting entry.
Your checking account is an accounting entry.
If you own savings bonds at treasureydirect.gov it's an accounting entry.
If you own paper savings bonds it's not.
Ultimately the SS trust fund is backed with the "full faith and credit" of the US just as the bonds that are sold to individual investors both here and abroad.
That's not to say they won't cut your benefits if they decide to, just that the fund is a lawful trust fund.
It does exist.
In the long run what I think will happen is the .gov will print a lot of money, much more than right now to pay those benefits.
The majority of politicians are far to cowardly to just cut your benefits or raise your taxes and actually tell you about it while they are doing it.
But monetary inflation solves several of their problems and they don't get blamed directly.
1. They can print a lot of money and pay your benefits with dollars that are worth say 20% less in purchasing power.
2. It's not just SS beneficiaries, they can pay all the government bondholders back with inflated money as well.
It's a very good thing when you can borrow $100 and only pay back $80 in value when it's due.
Plan accordingly.
Your checking account is an accounting entry.
If you own savings bonds at treasureydirect.gov it's an accounting entry.
If you own paper savings bonds it's not.
Ultimately the SS trust fund is backed with the "full faith and credit" of the US just as the bonds that are sold to individual investors both here and abroad.
That's not to say they won't cut your benefits if they decide to, just that the fund is a lawful trust fund.
It does exist.
In the long run what I think will happen is the .gov will print a lot of money, much more than right now to pay those benefits.
The majority of politicians are far to cowardly to just cut your benefits or raise your taxes and actually tell you about it while they are doing it.
But monetary inflation solves several of their problems and they don't get blamed directly.
1. They can print a lot of money and pay your benefits with dollars that are worth say 20% less in purchasing power.
2. It's not just SS beneficiaries, they can pay all the government bondholders back with inflated money as well.
It's a very good thing when you can borrow $100 and only pay back $80 in value when it's due.
Plan accordingly.
Well, considering what the Government did with the bondholders of GM and Chrysler, I wouldn't be too optimistic about the .gov debt and the "security" of holding bonds.
On top of all that, the powers-that-be at GM just bought a bunch of Peugot (a french automaker) who was seriously in debt themselves. So, our money going into the government coffers from all those "programs" and to at least one of the automakers is probably being frittered away, the latter being to a French company. Speaking of frittered, since the government is indebted through every plan for providing for everyone on need with disability and cell phones and food stamps, etc., isn't it likely that nothing will be fixed until Government stops spending?
Oh, but wait. Career politicians need to be re-elected. So, they promise the lazy and inept "goodies" for their votes.
Let's see, wasn't it George W. Bush that lobbied for reforms to SSI to allow people to at least control some of their money?
Oh, and wasn't it George W. Bush that wanted to reform Fannie Mae and Freddie Mac to help prevent what ultimately happened with the housing and banking markets?
Wasn't it the media and the Democrats that cried foul on both accounts, claiming that everything was just hunkie-dorie and to leave those well managed entities to be left alone?
On top of all that, the powers-that-be at GM just bought a bunch of Peugot (a french automaker) who was seriously in debt themselves. So, our money going into the government coffers from all those "programs" and to at least one of the automakers is probably being frittered away, the latter being to a French company. Speaking of frittered, since the government is indebted through every plan for providing for everyone on need with disability and cell phones and food stamps, etc., isn't it likely that nothing will be fixed until Government stops spending?
Oh, but wait. Career politicians need to be re-elected. So, they promise the lazy and inept "goodies" for their votes.
Let's see, wasn't it George W. Bush that lobbied for reforms to SSI to allow people to at least control some of their money?
Oh, and wasn't it George W. Bush that wanted to reform Fannie Mae and Freddie Mac to help prevent what ultimately happened with the housing and banking markets?
Wasn't it the media and the Democrats that cried foul on both accounts, claiming that everything was just hunkie-dorie and to leave those well managed entities to be left alone?
You a big dubya fan err ya Terry?
