Monday, April 20, 2015

Will U.S. Renege On It's Financial Debts?

This is about Social Security and the recent talk about cutting payments, raising the age and restructuring the program.

Problem.. What Problem?
Currently the Social Security Trust fund would have a surplus of over $2.7 trillion if congress hadn't exchanged taxpayers' contributions for a bunch of IOU's.

The U.S. has three separate budgets. The General Budget. Post Office Budget and the one for Social Security. Each separate from one another (or at least suppose to be). Out of the three only Social Security has a multi trillion dollar surplus (if it were not for congressional pilfering).

So What's The Problem !
Like any other debt the United States makes to other countries, investors/bondholders on Wall Street, the U.S. government is obligated to repay these loans. If investors lost faith the U.S. would be no longer be able to borrow. Thus the economic system would fail. Borrowing on promises made to Social Security should and cannot be any different then any other of the U.S.'s national debts.

The United States wouldn't dare renege on the terms or amounts they promised to repay to any other group. Being there is such a huge surplus why then are retirees and future retirees made to feel somehow they should get boned when none of these other debt holders are even being considered?

The government would be the first to prosecute anyone in the private sector who did a bait and switch to it's investors. There's no reason why Social Security should be treated any differently.

Again I repeat. Social Security has over a $2.7 trillion surplus on paper. If legislators decided to borrow all that money they have a obligation to repay it just like they would anyone else as part of our national debt. I'm sick of hearing how much it's costing the general fund. That has nothing to do with anything. The government overspent money before they had it. Congress authorized borrowing and now must repay. End of story.

Shut up already why retirees (and those who will be one day) should take it on the chin. Try doing that to the wall streeters, banks and foreign governments who lent money and see how it goes. They wouldn't put up with it and neither should all who are part of Social Security system.

Suppose I gave someone $10,000's of dollars to hold for me and they went and spent it. They'd be a low life dishonest crook deserving jail time. Any of these Bernie Madoff types engaged in politics who suggest we can't afford SS after government spent what was supposed to be held in trust are just like him as far as I'm concerned.


Further Reading On This Subject
"Social Security Trust -- Or, Never Lend Money to a Conservative"

Published on Dec 15, 2014

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