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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    The fund was ignored and feloniously mismanaged.


    You can say many things about a fund with 100% US Treasury Bonds, mismanaged probably isn't one of them.

    And it DOES make about a $TRILL difference in BUDGETING and PAYING THAT DEBT


    It makes zero difference. Not one dollar.

    Bonds held at Fidelity provide YEARLY income, tangible assets and their VALUE floats with the markets.

    Let's think about 2 Trust Funds, each with $2.6 trillion in Treasury Bonds.

    One is held at Fidelity. Every week day, $10 billion in 1 year Treasuries matures. $50 billion each week.
    $2.6 trillion each year.
    Fidelity takes the cash they get from the US Treasury, $10 billion plus interest and buys a new 1 year Treasury, at the Treasury website.

    The other is held by the US government. Every week day, $10 billion in 1 year Treasuries matures. $50 billion each week. $2.6 trillion each year.
    The Treasury issues a new 1 year Treasury to the Trust Fund. $10 billion plus interest.

    At the end of the week, each fund has exactly the same number of bonds earning the same interest rate.

    The day arrives when the funds have to pay out more benefits than they receive in payroll taxes.
    The Fidelity fund decides that on Monday, they'll just take the cash.
    The Treasury was used to the rollover, they don't have that much cash sitting around.
    They go out into the market and sell $10 billion in 1 year Treasuries to the public.

    The government held Trust Fund does the same. They notify the Treasury, they'll take cash on Monday.
    The Treasury was used to the rollover, they don't have that much cash sitting around.
    They go out into the market and sell $10 billion in 1 year Treasuries to the public.

    Any difference in the value or behavior of the 2 funds?

    Can anything come out of the either Trust Fund to pay for anything?
     
  2. regent
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    regent Gold Member

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    "Social Security Going Broke" seems to be the battle cry of the Republican party it
    has been used since the bill was passed wonder If that t battle cry is as effective as "Social Security is Socialism and Will Lead to Communism"?
     
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  3. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    "Social Security Going Broke" seems to be the battle cry of the Republican party

    Isn't it?
     
  4. regent
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    regent Gold Member

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    Always.
     
  5. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    Always going broke?
     
  6. Xelor
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    Xelor Gold Member

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    The impending exhaustion of the Social Security Trust Fund (SSTF) is not news. It was noted at least as far back as the Reagan years. Insofar as it was, workers have long had two choices: prepare adequately for that eventuality or don't. For those who headed the warning and are prepared, it won't matter. For those who ignored the warning, it'll matter to them, but it'll be their problem to deal with, not everyone else's.

    One can say "they promised this and that," but "they" also informed the nation that the SSTF would run out of money. One can either take those two realities into consideration and, in one's own best interest, act accordingly to mitigate the impact one suffers when the first "promise" does not come to fruition, or not. I simply will not feel very sympathetic for ones who chose the latter course.
     
  7. flacaltenn
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    flacaltenn Senior Mod Staff Member Senior USMB Moderator Gold Supporting Member

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    The SS TFund hasn't hasn't had actual Treasury Bonds put in there in several decades now. Just "inter agency transfer notes" AKA IOUs. They and the CBO acknowledge that fact in the links I provided.

    Treasury Bonds is what the Treasury has to sell TODAY to cover every penny of the SS Shortfall. NOTHING OF VALUE comes OUT of the purloined Trust Fund. EVERY PENNY of shortfall is NEW DEBT on the backs of the folks who got their surplus ROBBED -- or their children.
     
  8. skews13
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    skews13 VIP Member

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    No worries. The Republicans will be in a permanent minority by then, and taxes will be raised on the rich and corporations where they were before Reagan.
     
  9. skews13
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    skews13 VIP Member

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    401k was designed as a bonus for top executives. It was never intended to be the only means for workers to save for retirement. You can thank Reagan for that to. We need to go back to requiring companies to set up pensions for their workers like it used to be. The 401k scam is the biggest scam, besides tax cuts for rich people ever perpetrated on the American people. This to will be dealt with in time.
     
  10. Political Junky
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    Political Junky Gold Member

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    Cons are stupid, they believe this every time it's said for decades.
     

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