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Obama recently had a Community Agitator moment. It seems he forgot he was POTUS and thought he was knocking on doors in Chicago to rile up the legions of Mindless zombies that make up the Dem Party when he said, I cannot guarantee that those (Social Security) checks go out on Aug. 3 if we haven't resolved this issue
But according to the SSA, we learn that the investments in the fund are redeemed to pay benefits
"If all the income is invested, how do benefits get paid each month? Money to cover expenditures (mainly benefit payments) from the trust funds comes from the redemption or sale of securities held by the trust funds. When "special-issue" securities are redeemed, interest is paid. In fact, the principal amount of special issues redeemed, plus the corresponding interest, is just enough to cover an expenditure."
Trust Fund FAQs
Why did Obama lie about the Trust Fund?
Where did I go wrong?
Sorry Crusader.. But this time you're slightly off.
First off -- It's the GOP that's in denial here about the effects of playing chicken with the debt ceiling.. Of course, there's no immediate default.. What there WILL BE is a stack of unpaid OTHER bills.. Like Border Patrol, Forest Service, FAA, ect... Instead of being perpetual FEAR-Mongerers, they've turned into COMPLACENCY-Mongerers..
And you're wrong about the Social Soc "trust fund".. Those bonds are not public issue Treas bonds. They are non-transferable "special issue" bonds. Essentially -- intergovernmental IOUS with NO ZERO NADDA ability to pay ANYTHING... Every penney of Soc Sec checks comes from present Payroll Taxes OR NEW DEBT issued by the Treasury..
The "interest" on these IOUs is a fiction that was created to kick the can further down the road before Soc Sec was OFFICIALLY insolvent..
BTW -- It BECAME insolvent in 2010 -- 6 years ahead of schedule.. Largely because of the economy and the fact that the Pelosi/Reid Stimulus bled a nearly insolvent system into true insolvency by doing the Progressive tax cut on Payroll contributions..
It is NOW -- TODAY officially broken. There is nothing of value in the Trust Fund with which to pay checks that doesn't involve raising MORE debt.. You are gonna get to PAY TWICE for the theft of all that $2Trill SS Surplus that was Robbed..
^ THIS!
Please read this then reread it.
We are so totally broke
We are so totally fucked
Please educate yourself on how SocSecurity makes Bernie Madoff look ethical
British Chancellor of the Exchequer: The biggest danger to the world economy is a bunch of RW fanatics in congress..."
McCain- "Ditto!!"
Elitist mega rich STUPID Pubs, silly Pub Dupes- screwing up the world for 100 years...
Not really.
Social security is similar to a government bond fund that one can buy from Fidelity of T Rowe Price, only people are forced to participate, its run by the government, and instead of buying government bonds, the government accounts for assets and liabilities in the trusts as if it were buying government bonds.
Bad system, no doubt, but people are confused by this. One day, if I have the inclination, I'll start a thread to try to clear up this confusion.
When a trust fund receives payroll taxes or other income
that is not needed immediately to pay benefits or cover
other expenses, the Treasury credits the fund and uses the
excess cash to reduce the amount of new federal borrowing
that is needed to finance the governmentwide deficit.
That is, if other tax and spending policies are unchanged,
the government borrows less from the public than it
would in the absence of those excess funds. The reverse is
the case when revenues for a trust fund program fall short
of expenses. The balances of trust funds at a given point
in time are not a measure of resources available to pay
future obligations for the respective programs; those
resources will need to come from federal revenues or
additional borrowing in the years those obligations are
due.
In 1990, Reid, along with a few other senators, was trying to protect the future of Social Security by telling the truth about it. In a speech on the Senate floor, on October 9, 1990, Senator Reid made the following statement:
The discussion is are we as a country violating a trust by spending Social Security trust fund money’s for some purpose other than for which they were intended. The obvious answer is yes…On that chart in emblazoned red letters is what has been taking place here, embezzlement. During the period of growth we have had during the past 10 years, the growth has been from two sources. One, a large credit card with no limits on it, and, two, we have been stealing money from the Social Security recipients of this country.
Senator Reid was right in denouncing the raiding of the trust fund in 1990, but he didn’t follow through with his battle. Once he got into a leadership position, he abandoned his fight to end the looting and just ignored the illegal practice after that.
None of the Social Security surplus revenue has ever been saved and invested in Treasury bonds or anything else. All revenue, not needed to pay current benefits has been put into the general fund and used to pay for wars, tax cuts, and other government programs. Every dollar of the $2.5 trillion that is supposed to be in the trust fund has been “borrowed,” “embezzled,” or “stolen” by the government and spent for other purposes. The trust fund does not hold any real marketable government bonds or any other kind of real assets. It holds only IOUs in the form of ”special issues of the Treasury.” These are a gimmick, created by the government, to make the public think the trust fund holds “bonds” when it holds only IOUs. They are not marketable and could not be sold to anyone even for a penny on the dollar. They are nothing more than accounting devices.
Obama recently had a Community Agitator moment. It seems he forgot he was POTUS and thought he was knocking on doors in Chicago to rile up the legions of Mindless zombies that make up the Dem Party when he said, “I cannot guarantee that those (Social Security) checks go out on Aug. 3 if we haven't resolved this issue”
But according to the SSA, we learn that the investments in the fund are redeemed to pay benefits
"If all the income is invested, how do benefits get paid each month? Money to cover expenditures (mainly benefit payments) from the trust funds comes from the redemption or sale of securities held by the trust funds. When "special-issue" securities are redeemed, interest is paid. In fact, the principal amount of special issues redeemed, plus the corresponding interest, is just enough to cover an expenditure."
Trust Fund FAQs
Why did Obama lie about the Trust Fund?
Frankie
The "redemption" of the funds is the debiting of accounting entries out as liabilities of the US government. There are no marketable securities that can be sold. Thus, no bonds can be sold to pay off liabilities.
Sorry Crusader.. But this time you're slightly off.
First off -- It's the GOP that's in denial here about the effects of playing chicken with the debt ceiling.. Of course, there's no immediate default.. What there WILL BE is a stack of unpaid OTHER bills.. Like Border Patrol, Forest Service, FAA, ect... Instead of being perpetual FEAR-Mongerers, they've turned into COMPLACENCY-Mongerers..
And you're wrong about the Social Soc "trust fund".. Those bonds are not public issue Treas bonds. They are non-transferable "special issue" bonds. Essentially -- intergovernmental IOUS with NO ZERO NADDA ability to pay ANYTHING... Every penney of Soc Sec checks comes from present Payroll Taxes OR NEW DEBT issued by the Treasury..
The "interest" on these IOUs is a fiction that was created to kick the can further down the road before Soc Sec was OFFICIALLY insolvent..
BTW -- It BECAME insolvent in 2010 -- 6 years ahead of schedule.. Largely because of the economy and the fact that the Pelosi/Reid Stimulus bled a nearly insolvent system into true insolvency by doing the Progressive tax cut on Payroll contributions..
It is NOW -- TODAY officially broken. There is nothing of value in the Trust Fund with which to pay checks that doesn't involve raising MORE debt.. You are gonna get to PAY TWICE for the theft of all that $2Trill SS Surplus that was Robbed..
^ THIS!
Please read this then reread it.
We are so totally broke
We are so totally fucked
Please educate yourself on how SocSecurity makes Bernie Madoff look ethical
Not really.
Social security is similar to a government bond fund that one can buy from Fidelity of T Rowe Price, only people are forced to participate, its run by the government, and instead of buying government bonds, the government accounts for assets and liabilities in the trusts as if it were buying government bonds.
Bad system, no doubt, but people are confused by this. One day, if I have the inclination, I'll start a thread to try to clear up this confusion.
Why did Obama lie about the Trust Fund?
Remember, Social Security is not "unfunded" nor is it an "entitlement." That is YOUR money in that trust fund. You worked for it, and it was taken out of all your paychecks your entire working life.
The Social Security Trust fund invested your money by loaning it to the US Government, which is the largest single holder of US Government debt. But the US Government is already in default in fact, as the actual tax revenues have not even come close to the projections on which the budgets were drawn up.
So the US Government has looked at all the entities they owe money to and decided that stiffing the American people is the least likely to cause them harm. They will pay the bankers and they will pay foreign nations and they will continue to bail out Wall Street for the mortgage-backed securities fraud by embezzling your retirement money you gave them in trust. The US Government is robbing you to save the private central bank, whether it is by increasing taxes, or cutting social programs. -Rivero
The bottom line is the damned system our economy is built upon.
I agree that all the threats and grandstanding is pure political BS, and that if they were to stop paying SS checks, a rebellion would ensue. Think of how many people this would effect?? Even those that are not receiving SS checks would be affected, IF they depended on someone who IS to pay their mortgage or rent, utilities etc..It would have a domino effect that would lead to chaos.
Sadly, sometimes I think this is exactly what is needed to oust the current corrupt monetary system.
Remember, Social Security is not "unfunded" nor is it an "entitlement." That is YOUR money in that trust fund. You worked for it, and it was taken out of all your paychecks your entire working life.
