Comments on: Social Security Trust Fund: Accounting Kabuki

By: Let's Be Free

Let's Be Free — Sat, 30 Jul 2011 21:14:12 +0000

When the bank pays your money out someone actually pays back the loan, with interest. There is a real and virtuous circle of lending, investment and return.

When when SS trust fund notes mature the Tresasury just writes more worthless notes. Nothing is ever paid back and made available for withdrawal or investment in productive enterprise. Huge liquidity and leverage differences result. The closed loops and completed circles make the bank process much more secure.

By: tkc

tkc — Fri, 29 Jul 2011 20:41:11 +0000

Here is a whacky idea. Repudiate the SS Trust Fund treasuries. They’re nothing but an accounting gimmick anyway.
Of course you’ll then have to explain to seniors how close to $3 trillion in funds that was supposed to go to their welfare got spent on something else.

While you’re at it, repudiate the Treasuries that the Federal Reserve holds. I know, I know, the Fed is independent. Anyone who believes that please exit for the nearest sanitarium.

By: Letter: Let’s look at Social Security – Rockford Register Star « SSA

Fri, 29 Jul 2011 10:25:58 +0000

[...] …Social Security not a trust fundChicago TribuneTough choices for U.S. cutsThe Seattle TimesSocial Security Trust Fund: Accounting KabukiLiberty PapersDaily Caller -Huffington Post -Tampabay.comall 13 news articles » [...]

By: Stevem

Stevem — Thu, 28 Jul 2011 01:09:13 +0000

The FDIC will be SOL when the Fed and the Banks go
broke, read this:

http://seekingalpha.com/article/136368-where-does-the-fdic-get-its-money

By: Stevem

Stevem — Thu, 28 Jul 2011 00:55:18 +0000

I sent an email to the SSA asking how the SS system can be solvent to 2037, if OB say we can’t pay checks for next month?

Here is their response:

Thank you for contacting the Social Security Administration.

The issue at hand is not the solvency of the Social Security Administration. The issue is that the US Treasury will not have money to pay the bills.

The United States Government borrows some money (with interest) from the Social Security Administration Trust Fund to pay some of its bills. If the debt limit is not raised come Aug. 2, the government will have to pay its bills solely using incoming cash flows. Social Security Administration constantly has an incoming cash flow because of workers who pay into the system. The reason the Social Security Administration is still solvent is because of the incoming cash flows.

I read this as they are broke and can’t make payments without the tresurys IOUs and ability to raise the debt. They have lied for years.