Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Tap into the Social Security Trust Fund as if it were the federal oil reserve(best read of the day)
history.com ^ | 7/14/11 | KCPete

Posted on 07/14/2011 7:11:01 AM PDT by bestintxas

President Obama said yesterday, "I cannot guarantee that [Social Security] checks go out on August 3rd, if we haven't resolved this [debt ceiling] issue. Because there may simply not be the money in the coffers to do it."

We've been told by Democrats and liberal economists that the Social Security Trust Fund exists.

The official Social Security Administration website claims, "By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government," and, "Far from being 'worthless IOUs,' the investments held by the trust funds are backed by the full faith and credit of the U. S. Government."

Let's ignore, for the moment, the president's many options, such as cutting payments to his cronies and government bureaucrats. Instead of starving grandma, why doesn't President Obama just tap into the Social Security Trust Fund like he recently tapped into the oil reserves?

You mean to tell me, the Social Security Trust Fund doesn't really exist? I'm shocked!

(Excerpt) Read more at community.history.com ...


TOPICS: News/Current Events
KEYWORDS: oil; socialsecurity
Hey libs: your lying has caught up with you.
1 posted on 07/14/2011 7:11:04 AM PDT by bestintxas
[ Post Reply | Private Reply | View Replies]

To: bestintxas

The lockbox is there!

Right beside all the gold in Ft Knox....


2 posted on 07/14/2011 7:14:07 AM PDT by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bestintxas
The government bonds held by the Social Security Trust Fund are merely evidence that the money collected for that purpose has been spent on something else.

ML/NJ

3 posted on 07/14/2011 7:15:24 AM PDT by ml/nj
[ Post Reply | Private Reply | To 1 | View Replies]

To: silverleaf

I heard we are in debt just to ss by 60 trillion. People have no idea how bad it is.


4 posted on 07/14/2011 7:18:44 AM PDT by Linda Frances
[ Post Reply | Private Reply | To 2 | View Replies]

To: bestintxas
OBAMA666
5 posted on 07/14/2011 7:19:02 AM PDT by FrankR ("If you can't make them see the light, let them feel the heat." - R. Reagan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bestintxas
Quote seen on another forum message board:

"If the Social Security Administration takes in $45 billion a month, why won't Obama be able to pay out the $23 billion owed to Social Security recipients from the Trust Fund in August?"

http://www.ssa.gov/oact/progdata/taxquery.html

Rude questions you can ask your Lefty associates & family.

Rude questions the Obama-loving media will NEVER ask...

6 posted on 07/14/2011 7:20:17 AM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
[ Post Reply | Private Reply | To 1 | View Replies]

To: ml/nj

the problem is that the “holdings” of the trust are not registered securities, and the interest they generate is well below market level.

No investor is able to buy them, nor would they if they could.


7 posted on 07/14/2011 7:20:30 AM PDT by Triple (Socialism denies people the right to the fruits of their labor, and is as abhorrent as slavery)
[ Post Reply | Private Reply | To 3 | View Replies]

To: bestintxas

How do you think they can turn one of the special SS bonds into cash?


8 posted on 07/14/2011 7:21:31 AM PDT by DManA
[ Post Reply | Private Reply | To 1 | View Replies]

To: bestintxas; pookie18
Image and video hosting by TinyPic

Image and video hosting by TinyPic

9 posted on 07/14/2011 7:22:52 AM PDT by Cyber Ninja
[ Post Reply | Private Reply | To 1 | View Replies]

To: Linda Frances

If the Strategic Petroleum Reserve were operated the same way, the oil would initially barely partially fill it, then it would be opened and drained, and then forever after, till today and presumably beyond, it would be in a constant state of minimal filling, with that oil quickly drained just as fast. Through-out the years, the capacity would be constantly be expanded... though never ever nearing any more than a pittance of its filling. This is called a “Locked Petroleum Reserve”. Note, its strategic.


10 posted on 07/14/2011 7:23:34 AM PDT by C210N (0bama, Making the US safe for Global Marxism)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Triple

But if they are backed by the full faith and credit of the Federal Government, what is the problem?


11 posted on 07/14/2011 7:25:02 AM PDT by ngat
[ Post Reply | Private Reply | To 7 | View Replies]

To: bestintxas

I wouldn’t put too much trust in the gold stash the gubmint supposedly stored at Fort Knox either.

Even if they release photos of piles and piles of gold bars behind securiy measures, I’d only trust if Palin/West/and-or others that showed integrity swears it is there.


12 posted on 07/14/2011 7:29:58 AM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ngat

They do not earn enough interest.

Everyone else that lends money to the US Government gets paid a higher interest rate than the SS trust. And they (all other lenders) get marketable securities.


13 posted on 07/14/2011 7:35:18 AM PDT by Triple (Socialism denies people the right to the fruits of their labor, and is as abhorrent as slavery)
[ Post Reply | Private Reply | To 11 | View Replies]

To: bestintxas

Obama basically told ALL AMERICANS that the SS TRUST FUND, aka SS lockbox, DOES NOT EXIST.......................The cat’s out of the bag....................


14 posted on 07/14/2011 7:37:58 AM PDT by Red Badger (PEAS in our time? Obama cries PEAS! PEAS! when there is no PEAS!..........................)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bestintxas

The truth of the matter is our counted debt is 14.3 trillion dollars; to put it into perspective in the 80’s it was 1 trillion. Some items are not counted in that debt items like Social Security, Medicaid, Medicare and the Freddie Mac, Fanny Mae debt. By the numbers that debt is SS= 7.7 trillion, Medicaid, Medicare = 38.2 trillion, Freddie and Fanny = 5 trillion. Our total debt is really 50 trillion or more than 4 times the GNP. Maybe it is time to stop spending.


15 posted on 07/14/2011 7:38:57 AM PDT by shoff (Cuomo is going to change the NY state motto from Excelsior to elixir (cause we bought it)
[ Post Reply | Private Reply | To 1 | View Replies]

To: C210N
I wish one of the candidates would come right out and say, The Washington Times said your “aim has been to pile up such high deficits and debt so he can force America to accept massive permanent tax increases. Mr. Obama is using primitive class-warfare rhetoric, insisting on soaking “the rich.” He is not serious about confronting our debt bomb; rather, he seeks to consolidate his socialist revolution, paying for the expansion of the entitlement society.”

Then ask him, “why would you knowingly hurt the economy by raising the debt ceiling and getting our country in further debt. Right now 40% of the people pay no taxes & the top pay. (?%) Is it your intention to get more people dependent on entitlements so they are relying on politicians for there basic needs? I agree with WT that you are purposely trying to control people. If our leaders just started to speak the truth, instead of tip-toeing around obvious facts, we can get somewhere. I still wonder if o is blackmailing them with something we know nothing about.

16 posted on 07/14/2011 7:39:22 AM PDT by Linda Frances
[ Post Reply | Private Reply | To 10 | View Replies]

To: Linda Frances

I heard we are in debt just to ss by 60 trillion. People have no idea how bad it is.


And each trillion means $3000 for every American man woman, and child.

A three-quarter-million-dollar mortgage for every family of four.

Does anyone believe that it wil EVER be repaid?


17 posted on 07/14/2011 7:47:25 AM PDT by Atlas Sneezed (Government borrowing is Taxation without Representation)
[ Post Reply | Private Reply | To 4 | View Replies]

To: kiryandil

Rude questions the Obama-loving media will NEVER ask...


The national socialist media is only here to stand between their left-wing comrades and the truth being told to the American people. They know they have to “appear” to be unbiased, so they throw a few bones our way, but they know there job and do it the best they can: Keep the American people busy with lady gaga, Casey Anthony ...when Obama/Holder/....are illegally sending guns to Mexico/Nicaragua and who knows where else. They have been and are stealing our money, breaking laws left and right and NO ONE is holding there feet to the fire because the media are paper tigers. If anyone dares to speak the truth (Sarah) they destroy them. These people don’t care about the truth. There job is not reporting the facts or the truth. It’s giving power to the left until they can either convert all people to their leftist thinking or take out the right at any cost. They imbedded these people into important positions over the years to help the left turn our country into a commie country. They followed the handbook point by point. Control the schools, media, ....


18 posted on 07/14/2011 7:51:33 AM PDT by Linda Frances
[ Post Reply | Private Reply | To 6 | View Replies]

To: bestintxas
The national socialist media is only here to stand between their left-wing comrades and the truth being told to the American people. They know they have to “appear” to be unbiased, so they throw a few bones our way, but they know there job and do it the best they can: Keep the American people busy with lady gaga, Casey Anthony ...when Obama/Holder/....are illegally sending guns to Mexico/Nicaragua and who knows where else. They have been and are stealing our money, breaking laws left and right and NO ONE is holding there feet to the fire because the media are paper tigers. If anyone dares to speak the truth (Sarah) they destroy them. These people don’t care about the truth. There job is not reporting the facts or the truth. It’s giving power to the left until they can either convert all people to their leftist thinking or take out the right at any cost. They imbedded these people into important positions over the years to help the left turn our country into a commie country. They followed the handbook point by point. Control the schools, media, ....


I failed to mention something else. Until we on the right are willing, in huge number, to boycott abc, cbs, nbc, cnn,....cable tv, they will have power. Look what has happened to print media. We could do the same thing if rich conservatives put there money into giving us other options.

19 posted on 07/14/2011 8:00:37 AM PDT by Linda Frances
[ Post Reply | Private Reply | To 1 | View Replies]

To: bestintxas
Get ready for the pitchforks headed to DC. Mess with our SS checks and you will have hell to pay.
We were forced into this Ponzi scheme and now that we are receiving it you have the gall to tell us it is welfare.
If you are serious Mr. ZERO - you will loose more than your presidency. . . . .
20 posted on 07/14/2011 8:02:59 AM PDT by DeaconRed (ZERO & Casey Both are good Liars and good at absolutely nothing else. . . .)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bestintxas

Yep. It is tapped out. That is why Obama is willing to put it on the table. They can no longer use it as a slush fund.


21 posted on 07/14/2011 8:04:56 AM PDT by screaminsunshine (Socialism...Easier said than done.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Voter#537

The media suffers from Irrational Obama Exuberance.


22 posted on 07/14/2011 8:07:11 AM PDT by screaminsunshine (Socialism...Easier said than done.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Voter#537
Collapse of America is immanent.
23 posted on 07/14/2011 8:08:17 AM PDT by screaminsunshine (Socialism...Easier said than done.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: ngat
The problem is that the only way to redeem the Special Issue bonds used for the SS "trust fund" is from surplus budgetary funds (which would be an overtaxation) or by issuing Treasury bonds at auction (borrowing money) to redeem the obligation. Under either scenario, even though real money was taken from workers to "buy" the bonds, more real money will have to be taken from workers to redeem them in order to give the original money back to the people.

It would be as if you wrote yourself an IOU for $1 million and then went to a bank looking to use that IOU as security for a loan. It's actual value is $0.00

24 posted on 07/14/2011 8:18:57 AM PDT by Sgt_Schultze (A half-truth is a complete lie)
[ Post Reply | Private Reply | To 11 | View Replies]

To: ml/nj; bestintxas

The Promise (1964)

http://www.ssa.gov/history/ssa/usa1964-2.html

Self-Supporting

“The program is designed so that contributions plus interest on the investments of the social security trust funds will be sufficient to meet all of the costs of benefits and administration, now and into the indefinite future—without any subsidy from the general funds of the Government. Both the Congress and the Executive Branch, regardless of political party in power, have scrupulously provided in advance for full financing of all liberalizations in the program.”

And here is where YOUR money really went. Read and weep.

http://www.socialsecurity.gov/OACT/ProgData/fundFAQ.html#n4


25 posted on 07/14/2011 8:18:57 AM PDT by Ruy Dias de Bivar (Click my name. See my home page, if you dare! NEW PHOTOS!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Triple

“Everyone else that lends money to the US Government gets paid a higher interest rate than the SS trust. And they (all other lenders) get marketable securities.”

Still don’t understand why those two statements mean that there is necessarily a problem (with the SS system). The higher the interest rate the riskier the investment. So, if the SS Trust Fund gets low interest on the loan, but the borrower has the power to tax (via the payroll tax) to pay the loan back, the low interest rate should not be a problem. And it follows that the SS Trust fund would then not want to sell a security that is so absolutely safe anyway.


26 posted on 07/14/2011 8:26:45 AM PDT by ngat
[ Post Reply | Private Reply | To 13 | View Replies]

To: sickoflibs

ping


27 posted on 07/14/2011 8:28:55 AM PDT by GOPJ (Honk if I'm paying for your car, your mortgage, and your big, fat Greek bailout - mewzilla)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Triple

“Everyone else that lends money to the US Government gets paid a higher interest rate than the SS trust. And they (all other lenders) get marketable securities.”

Still don’t understand why those two statements mean that there is necessarily a problem (with the SS system). The higher the interest rate the riskier the investment. So, if the SS Trust Fund gets low interest on the loan, but the borrower has the power to tax (via the payroll tax) to pay the loan back, the low interest rate should not be a problem. And it follows that the SS Trust fund would then not want to sell a security that is so absolutely safe anyway.


28 posted on 07/14/2011 8:32:16 AM PDT by ngat
[ Post Reply | Private Reply | To 13 | View Replies]

To: ngat

“The higher the interest rate the riskier the investment.” - in a free market, yes

But the US government pays the chinese people (through their government) a higher rate of interest (with the same guarantee) than it pays the US citizens for their loan to the US government through the SS trust.

Why give the the Chinese people a better deal? (same guarantee, higher interest rate)

Sinking in?


29 posted on 07/14/2011 8:56:31 AM PDT by Triple (Socialism denies people the right to the fruits of their labor, and is as abhorrent as slavery)
[ Post Reply | Private Reply | To 28 | View Replies]

To: bestintxas; GOPJ; Revel; penelopesire; dools0007world; Impy; silverleaf; ml/nj; Linda Frances; ...
RE :”The official Social Security Administration website claims, “By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government,” and, “Far from being ‘worthless IOUs,’ the investments held by the trust funds are backed by the full faith and credit of the U. S. Government.” Let's ignore, for the moment, the president's many options, such as cutting payments to his cronies and government bureaucrats. Instead of starving grandma, why doesn't President Obama just tap into the Social Security Trust Fund like he recently tapped into the oil reserves?

YES !!! , I beat this author to the theme above, but I love it anyway. Just use the SS trust fund assets that Dems swear are there to pay for SS.
Democrats and the Social Security Trust Fund Lie Exposed today

Unfortunately congressional Republicans won't call Democrats out on this lie, I point out why at that link above.

30 posted on 07/14/2011 8:57:58 AM PDT by sickoflibs (If you pay zero Federal income taxes, don't say you are paying your 'fair share')
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sir Napsalot
I wouldn’t put too much trust in the gold stash the gubmint supposedly stored at Fort Knox either.

Of course there is gold in Fort Knox. There are, quite literally, tons of it there. You're missing the most important question though, which is, who owns the gold stored there? I'll give you a hint, it ain't the U.S. government. Carter sold off the last of the actual gold reserve during his administration, a process that had begun under Nixon.

I've actually seen, with my own two eyes the treasury documents stating same. It's one of those things that I really wish I'd kept a copy of.

31 posted on 07/14/2011 9:00:56 AM PDT by zeugma (The only thing in the social security trust fund is your children and grandchildren's sweat.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: bestintxas

Boehner could pass a bill today guaranteeing Social Security checks go out. Would Democrats in the House vote against it? Could Reid refuse to bring it to the floor? Would Obama refuse to sign it?


32 posted on 07/14/2011 9:19:41 AM PDT by newzjunkey (hat tip Newt)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ngat
But if they are backed by the full faith and credit of the Federal Government, what is the problem?

LOL

I have little faith in the Federal Gubermint and give them no credit whatsoever.

33 posted on 07/14/2011 9:22:25 AM PDT by NonValueAdded (From her lips to the voters' ears: Debbie Wasserman Schultz: "We own the economy" June 15, 2011)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Triple

I would not agree that there is the same guarantee.


34 posted on 07/14/2011 9:25:58 AM PDT by ngat
[ Post Reply | Private Reply | To 29 | View Replies]

To: Linda Frances

It’s bad and when I hear people say “I paid in” I just cringe.Yep we all did and they spent it on every folly they wanted to.We hve some very bad decades ahead f us.


35 posted on 07/14/2011 9:25:58 AM PDT by chris_bdba
[ Post Reply | Private Reply | To 4 | View Replies]

To: Voter#537

WE all paid in but it has to end because we are broke.All entitlements have to end.


36 posted on 07/14/2011 9:29:04 AM PDT by chris_bdba
[ Post Reply | Private Reply | To 20 | View Replies]

To: bestintxas
President Obama said yesterday, "I cannot guarantee that [Social Security] checks go out on August 3rd, if we haven't resolved this [debt ceiling] issue. Because there may simply not be the money in the coffers to do it."

Given that there is enough revenue coming in each month to service the debt, pay Social Security, fund Medicare, and a bunch of other stuff, they should consider that when Obama says there may not be money in the coffers to do it it means he's planning on using Social Security money for some other spending scheme--in other words, he's planning to continue what the Democrats have always done: spend other people's money and then blame the Republicans.
37 posted on 07/14/2011 9:30:13 AM PDT by aruanan
[ Post Reply | Private Reply | To 1 | View Replies]

To: ngat

T-bills are backed by the “full faith and credit” of the US government. - as far as guarantees go - it does not get any stronger.


38 posted on 07/14/2011 9:34:35 AM PDT by Triple (Socialism denies people the right to the fruits of their labor, and is as abhorrent as slavery)
[ Post Reply | Private Reply | To 34 | View Replies]

To: NonValueAdded

I have faith that I will be taxed and and I will comply, therefore; they don’t really need me to give them any credit.


39 posted on 07/14/2011 9:37:07 AM PDT by ngat
[ Post Reply | Private Reply | To 33 | View Replies]

To: Triple
T-bills are backed by the “full faith and credit” of the US government. - as far as guarantees go - it does not get any stronger.

I think my tagline says it all. 

I really like the idea of the article. Someone needs to call the scam what it is.

40 posted on 07/14/2011 9:49:23 AM PDT by zeugma (The only thing in the social security trust fund is your children and grandchildren's sweat.)
[ Post Reply | Private Reply | To 38 | View Replies]

To: Triple

I disagree. The full faith and credit behind the Special Issue Bonds are an even stronger full faith and credit than that backing the T-bills. ‘Cuz the interest rate paid on the two is different, the T-bill buyer should expect his higher interest T-bills are the riskier investment!


41 posted on 07/14/2011 10:03:45 AM PDT by ngat
[ Post Reply | Private Reply | To 38 | View Replies]

To: Linda Frances
I heard we are in debt just to ss by 60 trillion. People have no idea how bad it is.

The total debt is the $14.5 trillion often mentioned. Lots of people talk about the unfunded liabilities that will come due in future years without specifying what number of future years they are counting. That's where those huge numbers come from.

The present debt owed to SS is about $2.5 trillion, and the system as is will be solvent until 2037 (assuming the government pays back the $2.5 trillion over the years when current year SS receipts aren't enough to meet current year payouts.

2010 was the first year that SS receipts feel short and the government had to pay back $30 - 40 billion to SS and will probably have to pay back some amount each year until 2037.

Medicare is the program that is really underfunded and will only get worse.

42 posted on 07/14/2011 10:04:28 AM PDT by Will88
[ Post Reply | Private Reply | To 4 | View Replies]

To: ngat

ok - have a nice life.


43 posted on 07/14/2011 10:17:25 AM PDT by Triple (Socialism denies people the right to the fruits of their labor, and is as abhorrent as slavery)
[ Post Reply | Private Reply | To 41 | View Replies]

To: Cyber Ninja
Thanks, CN...added to Today's Toons 7/18/11...


44 posted on 07/14/2011 10:44:09 AM PDT by pookie18 (Palin/West '12)
[ Post Reply | Private Reply | To 9 | View Replies]



Click the Birdie and Smile!

When a New Monthly Donor Signs Up
A Sponsoring FReeper Will Contribute $10


Sign up today

45 posted on 07/14/2011 10:51:38 AM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list.)
[ Post Reply | Private Reply | View Replies]

To: bestintxas

Plus, why are we giving $$ to terrorist countries, and Planned Parenthood, and other evil groups?


46 posted on 07/14/2011 2:09:49 PM PDT by Sun (Pray that God sends us good leaders. Please say a prayer now.)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson