CDZ Social Security Trust Fund will go broke in 17 years

Discussion in 'Clean Debate Zone' started by task0778, Jul 17, 2017.

  1. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    That "interest" was never booked and paid by the Treasury.

    It was credited to the Trust Fund.
    Every single year.

    WILL be booked and paid NOW by issuing NEW debt to cover the old interest.

    When Social Security was running a surplus, it didn't "need" the earned interest to pay benefits.
    So the interest "bought" more bonds, making the balance of the fund larger.

    This was no different than if the fund had bought bonds in the open market and re-invested interest and principal payments into new bonds.

    Now that the fund is paying out more than it collects, yes, the Treasury has to sell new bonds to give the Trust Fund the money needed to pay benefits.

    The FACT IS -- that interest was never paid during the life of the debt. Like it is on REAL bonds.


    It was paid and bought more bonds. Just like real bonds re-investing the interest.
     
  2. flacaltenn
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    flacaltenn Senior Mod Staff Member Senior USMB Moderator Gold Supporting Member

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    You're sandbagging about it being "credited". It never was BUDGETED by Congress. Never BOOKED as a yearly debt. In other words --- NOTHING happened. And NOTHING of value got placed in the Trust Fund to defer future liabilities. That's NOT how normal Treasury Bonds or MOST bonds work..

    It's a sham. A Crock of Shit. And the biggest lie ever to come out of the Swamp....
     
  3. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    You're sandbagging about it being "credited". It never was BUDGETED by Congress.

    Do you think Congress budgets interest payments on debt? LOL!

    Never BOOKED as a yearly debt.

    Sure it was.

    upload_2017-7-24_23-33-48.png
    Trust Fund Data

    And NOTHING of value got placed in the Trust Fund to defer future liabilities.

    Just a promise to pay. Like any other Treasury Bond.
     
  4. flacaltenn
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    flacaltenn Senior Mod Staff Member Senior USMB Moderator Gold Supporting Member

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    It's in EVERY ANNUAL budget. Shows as a debit for that YEAR. All the time. You're screwed on this one. CBO makes the distinction that "interest" paid to Soc Soc is NOT a budgeted debt for that year.

    If you don't understand this and think that massive Bond debt is not actually budgeted, booked and PAID every year for "normal borrowing" -- than I pretty much done here. Those book entries for the "trust fund" were NEVER budgeted, booked and paid.. That's why you're getting a SECOND TIME for the same damn stolen money and phony interest....

    Federal Debt and Interest Costs

    Interest Payments and Receipts
    The government pays and collects interest in various ways. Its net interest outlays are equal to the interest it pays minus the interest it receives. Net interest outlays are dominated by the interest paid to holders of the debt that the Treasury issues to the public. Although the Treasury also issues debt to trust funds and other government accounts, the payment of interest to those accounts is an intragovernmental transaction that has no effect on net interest outlays or on the budget deficit.
    The federal government’s interest payments depend primarily on interest rates and the amount of debt held by the public. Other factors, such as the rate of inflation and the maturity structure of outstanding securities, also affect interest costs (for example, long-term bonds generally carry higher interest rates than do short-term bills). Interest rates are determined by a combination of market forces and the policies of the Federal Reserve. Debt held by the public is determined mostly by cumulative budget deficits, which depend on policy choices about spending and revenues and on economic conditions and other factors.
    Although the federal government has increased its net borrowing by more than $3 trillion in the past two years, net interest costs dropped from $253 billion in 2008 to $197 billion in 2010 because of remarkably low interest rates. The amounts of net interest shown in the budget include interest paid on all Treasury securities ($413 billion in 2010), minus the portion of that interest that is received by trust funds ($186 billion in 2010) and the net amount of other interest received by the government ($30 billion in 2010). The last category consists primarily of net receipts to the Treasury from the financing accounts for federal loan programs (those accounts are not included in the federal budget).


    --------------------------------

    No wonder you're not irate. You don't seem to know how this stuff works. That's HOW they robbed you twice.


     
  5. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    It's in EVERY ANNUAL budget.

    If Congress budgets $200 billion for interest but actually owes $250 billion, interest won't be paid? LOL!

    If you don't understand this and think that massive Bond debt is not actually budgeted, booked and PAID every year for "normal borrowing"


    Of course it's paid every year.

    The amounts of net interest shown in the budget include interest paid on all Treasury securities ($413 billion in 2010), minus the portion of that interest that is received by trust funds

    That's weird, you said the Treasury doesn't pay interest to the Trust Fund and then your own source says it does.

    As I said before, don't worry about it.
    Plenty of people don't understand accounting. You're not alone in your confusion.
     
  6. flacaltenn
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    flacaltenn Senior Mod Staff Member Senior USMB Moderator Gold Supporting Member

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    Net Interest -- YES.. Amount PAID --- NO. And that is the tremendous difference between borrowing with DISCIPLINE to PAY yearly interest and the phony fantasy that there was any INVESTMENT on the stolen funds.

    NOTHING "paid" to Soc Sec was ever booked as debt or debit for all those years. Never created ANY value to the "trust fund". Just felonious book keeping.

    THAT'S the diff between REAL Treasury Debt instruments and fake ones. HAD that interest gotten credited every year like OTHER US debt --- There's be almost $1TRILL in cash on pallets at the Fed Reserve to pay this years $30B shortfall....
     
  7. flacaltenn
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    flacaltenn Senior Mod Staff Member Senior USMB Moderator Gold Supporting Member

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    There weren't any bonds. There weren't any actual payments made. No reinvestment in ACTUAL BONDS. It's a book-keeping entry. AND the proper term for the JUNK that's in there is not bonds. They are called Inter-Governmental Dept Debit Memos.. They are NOT an investment. They are worthless IOUs with ZERO power to pay the bills. YOU'RE gonna be robbed again to pay for the money and phony interest that the Congress and Leadership stole from you 30 years ago.. And then did NOTHING to manage the situation..
     
  8. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    Net Interest -- YES.. Amount PAID --- NO.

    I gave you the SocSec link that shows the amount paid to the Trust Fund.

    NOTHING "paid" to Soc Sec was ever booked as debt or debit for all those years.


    Except for the amount the Trust Fund got every year.

    THAT'S the diff between REAL Treasury Debt instruments and fake ones.


    Pretend the Trust Fund was held at Fidelity with "Real Treasury Debt Instruments".
    In 2016, instead of crediting the Trust Fund with $88.356 billion in "fake Treasuries",
    the Treasury pays out $88.356 billion in interest to that Fidelity account which then buys $88.356 billion
    in real Treasury Debt to add to their position.

    What is the difference to the US Treasury, the Trust Fund or the net debt position of the US government between those 2 scenarios?
     
  9. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    There weren't any bonds.

    You act like bonds don't count unless you can touch them.
    Remember the final scene of Die Hard? All those Bearer Bonds fluttering around
    after the building explodes? That was cool!

    Treasury Bonds are all bookkeeping entries now.
    They don't even send you a paper savings bond anymore.

    All electronic.
    I guess you can claim savings bonds are worthless IOUs.
    I'll disagree with you there too.

    YOU'RE gonna be robbed again to pay for the money and phony interest that the Congress and Leadership stole from you 30 years ago..

    When the Trust Fund stops reinvesting the interest earned and starts redeeming bonds to pay benefits, it wouldn't make one bit of difference if the funds were held at Fidelity or held by the US government, that money is coming from the US taxpayers would cough up the dough every single time a bond matures.
     
  10. flacaltenn
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    flacaltenn Senior Mod Staff Member Senior USMB Moderator Gold Supporting Member

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    Complete BS. As you've been denying, Bonds held at Fidelity provide YEARLY income, tangible assets and their VALUE floats with the markets. These are not bonds. The fund was ignored and feloniously mismanaged. If it were subject to SEC -- folks would be in jail...

    And it DOES make about a $TRILL difference in BUDGETING and PAYING THAT DEBT.. ZERO was invested or paid during the 30 years of theft. They left that up to YOU to cover ever $$ of SS income shortfall TODAY.

    NOTHING comes out of the Trust Fund to pay for ANYTHING..
     

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