You knew it was coming: Social Security to tap into trust fund for first time in 36 years


#22

I agree that most of the conspiracy theories are rubbish, but I’m rooting for the secret space program to be real. That one would be badass. lol


#23

Thinking about my earlier post, “fixing” social security would NOT involve diverting the equivalent 3.1% of the GDP. Only a portion of the GDP (income earned from work up to $127,500) is currently subject to FICA tax

It’s still a big chunk of change, just not as big as I had stated.


#24

There is a lot of wrong here. Are t-bills held by me any more or less valuable than t-bills held by the government. Explain to me how that works.


#25

You are correct that the SS trust fund does exist, and interest is paid on the money Congress borrows from it.

That said, the Fed Res. board has long been in the game of “lowering intetest rates,”
-and-
trust fund borrowing is long term but the interest rate Congress pays is based on a combination of long and short-tetm rates. Thus interest payments paid into the SS trust are not free market rates, they are artificially lowered TWICE.


#26

We should probably pass more tax cuts.


#27

FICA taxes have never been cut. (You knew this.)
Thus no package of tax cuts has ever contributed to the problem. (You knew this.)

Might as well try to use this to push your views about gay wedding cakes.


#28

dem·a·gogue
ˈdeməˌɡäɡ
noun
a political leader who seeks support by appealing to popular desires and prejudices rather than by using rational argument.


#29

They’ve never been cut?


#30

in the how soon the elephants forget department

Obama cut fica taxes

Lol.

Allan


#31

No, you are missing the point.

The government is trying to claim something as an asset that is countered by a matching liability on its own books. Only one entity is involved.

You represent a second party in your own dealings with the government.

To be comparable to something YOU might try imagine walking into a bank with a bond that your right hand had issued to your left hand and claiming to a bank officer that it was an asset (ignoring that your left hand is technically holding the matching offsetting liability) and could you please borrow some money against it.


#32

Typo “left hand had issued to your right hand”


#33

That was a one-year giveaway.
I di not consider that a cut. Even if you do, it was a one-year thing and has no impact on SS today or in 2035.


#34

And yes when I said “never” I had completely forgotten about that and would have chosen my words diffently.

-1 point for me.


#35

Ok. Thanks for your interpretation. Now let’s get back to stark reality. Are the t-bills the social security administration holds any less valuable than the ones that I hold?


#36

we inch closer and closer to my solution.