FA_Q2
Gold Member
Flopper,
The problem here is that those 'investments' really represent debt that will be owed by the general fund and yet that debt is not reported as such. That 2 trillion that the SS can claim as held assets need to be reflected as 2 trillion in owed debt by the general fund. Once we get a view on that debt then we can see why there is turmoil about paying those off. It represents a MASSIVE amount of cash that we simply do not have. As already pointed out, it is almost a guarantee that the government will default on them as well. The default will be called something else of course like changing the retirement age and the benefit but it amounts to the same thing. As I pay into the system with a promised benefit of X, I know that promised benefit will NOT be met and instead I'll get something else. Hence, the inherent mistrust in the government's ability to manage said monies.
What they are doing is not investing. You are not investing when you loan yourself money with the intent to pay yourself back with interest.
The problem here is that those 'investments' really represent debt that will be owed by the general fund and yet that debt is not reported as such. That 2 trillion that the SS can claim as held assets need to be reflected as 2 trillion in owed debt by the general fund. Once we get a view on that debt then we can see why there is turmoil about paying those off. It represents a MASSIVE amount of cash that we simply do not have. As already pointed out, it is almost a guarantee that the government will default on them as well. The default will be called something else of course like changing the retirement age and the benefit but it amounts to the same thing. As I pay into the system with a promised benefit of X, I know that promised benefit will NOT be met and instead I'll get something else. Hence, the inherent mistrust in the government's ability to manage said monies.
What they are doing is not investing. You are not investing when you loan yourself money with the intent to pay yourself back with interest.