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 ...
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.
The media suffers from Irrational Obama Exuberance.
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
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
“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.
ping
“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.
“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?
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.
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.
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?
LOL
I have little faith in the Federal Gubermint and give them no credit whatsoever.
I would not agree that there is the same guarantee.
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.
WE all paid in but it has to end because we are broke.All entitlements have to end.
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 have faith that I will be taxed and and I will comply, therefore; they don’t really need me to give them any credit.
I think my tagline says it all.
I really like the idea of the article. Someone needs to call the scam what it is.
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