There is NO RISK in privatizing SS and investing in stock market!!!

[boedicca]

SS has no "rate of return" because the money is not invested. It's spent the minute the government gets its hands on it. SS is the largest Ponzi scheme ever devised.

SS does have a rate of return. You can see it on the web site.

That the money is spent is irrelevant. The government borrows from you then spends the proceeds, then pays you back when you receive SS.

If you spend money on a credit card, that is also immediately spent, and there is one heck of an interest rate on that.

Except for the little fact that the Government is not obligated to pay one back for what it has "borrowed"...it can change the rules after the fact whenever it desires.

For younger payers, the return is turning negative due to inflation and the low interest rate on government debt.

One, inflation is less than 2%.

Two, Congress can adjust for inflation.

Inflation is most certainly NOT 2% in the real world.

The Government excludes ENERGY and FOOD from that figure...expenses which consume a high ratio of income for people who live on SS.

 

[JakeStarkey]

Overall, it certainly is. We are paying less for food this year and a cent or two per gallon more.

Post reputable figures, if you disagree, with reputable sources. You have not done that.

 

[SteadyMercury]

Blah blah blah blah

Liar.

 

[Erand7899]

A ponzi scheme is a device in which new entrants pay for those who are entitled to receive rewards from the scheme. Social Security is a ponzi scheme. The taxes on working Americans is used to pay the annuities of retireees.

None of you left wing hacks had any problem with Obama giving you a cut in your FICA taxes, so that you could spend it any way you pleased, However, you consider that allowing people to invest part of their FICA taxes is somehow a horrible thing. You are the sheeple.

Social Security was a fraud from it's inception. The retirement age was set at the life expectancy age, and the Democrats who came up with the scheme did not plan on paying out much in retirement benefits.

 

[boedicca]

Overall, it certainly is. We are paying less for food this year and a cent or two per gallon more.

Post reputable figures, if you disagree, with reputable sources. You have not done that.

You haven't posted a reputable source, bub.

Shadowstats provides a consistent calculation of Inflation, and it's not a pretty picture.

Alternate Inflation Charts

 

[SteadyMercury]

The Government excludes ENERGY and FOOD from that figure...expenses which consume a high ratio of income for people who live on SS.

No they don't.

Consumer Price Index Frequently Asked Questions

The CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups. Major groups and examples of categories in each are as follows:

• FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)
• HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
• APPAREL (men's shirts and sweaters, women's dresses, jewelry)
• TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
• MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)
• RECREATION (televisions, toys, pets and pet products, sports equipment, admissions);
• EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
• OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).

Also included within these major groups are various government-charged user fees, such as water and sewerage charges, auto registration fees, and vehicle tolls. In addition, the CPI includes taxes (such as sales and excise taxes) that are directly associated with the prices of specific goods and services. However, the CPI excludes taxes (such as income and Social Security taxes) not directly associated with the purchase of consumer goods and services.

The CPI does not include investment items, such as stocks, bonds, real estate, and life insurance. (These items relate to savings and not to day-to-day consumption expenses.)

For each of the more than 200 item categories, using scientific statistical procedures, the Bureau has chosen samples of several hundred specific items within selected business establishments frequented by consumers to represent the thousands of varieties available in the marketplace. For example, in a given supermarket, the Bureau may choose a plastic bag of golden delicious apples, U.S. extra fancy grade, weighing 4.4 pounds to represent the Apples category.

 

[boedicca]

The Government excludes ENERGY and FOOD from that figure...expenses which consume a high ratio of income for people who live on SS.

No they don't.

Consumer Price Index Frequently Asked Questions

The CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups. Major groups and examples of categories in each are as follows:

They measure the categories, but exclude Food and Energy from the headline figure.

Consumer Price Index Summary

Note the 12th line in the table below.

 

[boedicca]

In addition, for Food, the BLS uses a substitute basket of goods. If Beef is expensive, they assume people will eat something cheaper, such as chicken, and discount the inflation. It's b'loney.

 

[healthmyths]

IDIOT for a brother! NOT one person who accumulated that much money and was smart would have had it ALL in the stock market at AGE 68!
That was totally stupid on his part!
And he was an even BIGGER fool to have all that money by his "advisor" in the market!
Should have at age 68 had 20% in the market THE REST in SECURED investments!
DUMB F...k!

Ok, in your world, you would privatize SS, and then, when someone finds themselves at 75 with little or no income because of poor investment decisions, your answer to their being hungry and homeless is to say, "DUMB FUCK!". So, privatization is a great idea if you are a savvy investor, but you know, as well as I, that over two thirds of the people make no retirement plans at all, or poor plans, and therefor, should be left to starve, or sleep under a bridge.
Wow, Myth! You are just a bundle of good ideas and solutions!

FORWARD TO THE 1930's!!!!!!!

THERE IS NO POOR investment decision when you are taught to think with common sense!
Common sense being you don't put all your eggs in one f...king basket especially at age 75!
AND there are people who live today under the bridge EVEN with SS!
So that's a very very lame example!
But ONCE again idiots like you TAKE The exception..i.e. EVERY ONE going to be as stupid as the
75 year old and EVERYONE will keep ALL their accumulation IN speculative stocks at 75!
That is such an inane weak cliched over worked illustration of what EXAGGERATE stories like you posted do! THEY ARE THE EXCEPTIONS!
Do you understand???
Of course you don't because it doesn't fit your meme! Look it up dummy!

 

[Toro]

Except for the little fact that the Government is not obligated to pay one back for what it has "borrowed"...it can change the rules after the fact whenever it desires.

That's true. That's called "credit risk." Credit risk is the risk of not being paid back. Some type of credit risk is inherent in every investment you make.

 

[Toddsterpatriot]

If they get it, they will find a way to steal it, they are Wall Street after all, it's what they do. It just fucking kills them that there is all that money out there that they cannot get their grubby mitts on.

If they get it, they will find a way to steal it, they are the government after all, it's what they do. It just fucking kills them that there is all that money out there that they cannot get their grubby mitts on.

 

[boedicca]

Except for the little fact that the Government is not obligated to pay one back for what it has "borrowed"...it can change the rules after the fact whenever it desires.

That's true. That's called "credit risk." Credit risk is the risk of not being paid back. Some type of credit risk is inherent in every investment you make.

I can't think of another "credit risk" which is compulsory.

 

[bripat9643]

Except for the little fact that the Government is not obligated to pay one back for what it has "borrowed"...it can change the rules after the fact whenever it desires.

That's true. That's called "credit risk." Credit risk is the risk of not being paid back. Some type of credit risk is inherent in every investment you make.

The government isn't legally obligated to pay you back. It's not obligated to pay out any sum of money. Social Security isn't a loan or an investment, so it has nothing to do with "credit risk."

 

[Toro]

Except for the little fact that the Government is not obligated to pay one back for what it has "borrowed"...it can change the rules after the fact whenever it desires.

That's true. That's called "credit risk." Credit risk is the risk of not being paid back. Some type of credit risk is inherent in every investment you make.

The government isn't legally obligated to pay you back. It's not obligated to pay out any sum of money. Social Security isn't a loan or an investment, so it has nothing to do with "credit risk."

They absolutely are legally obligated to pay you back. There are laws regarding SS and Treasury bonds.

But they can change the laws. That's one of the risks.

Besides, even if your contention were true, it doesn't mean Treasuries are worthless. If you lend $10,000 to a family member without a contract, does that mean that $10,000 is worthless to you? Of course not. Most family members will pay it back.

The Treasury market is worth $12,000,000,000,000. If Treasury securities were "worthless" as you claim, they wouldn't be worth $12,000,000,000,000. They would be worth substantially less. They would be worth $0.

You should call up the head of Goldman Sachs or Citigroup and let them know. They might be interested in your stunning revelation.

 

[SteadyMercury]

They measure the categories, but exclude Food and Energy from the headline figure.

No, that is incorrect.

Having subtotals doesn't mean they exclude it from the headline, there are various measures they provide statistics on and CPI includes energy and food. Your chart shows for July 2014:

CPI all items = 2.0%
CPI all items less food and energy = 1.9%

Then what says the top paragraph from the summary at Consumer Price Index Summary

The Consumer Price Index for All Urban Consumers (CPI-U) increased
0.1 percent in July on a seasonally adjusted basis, the U.S. Bureau
of Labor Statistics reported today. Over the last 12 months, the all
items index increased 2.0 percent before seasonal adjustment.

What are the headlines for July 2014 CPI?

FOREX-U.S. dollar hits 9-month high against euro on strong housing data Reuters

In the 12 months through July, the CPI increased 2.0 percent after advancing 2.1 percent in June.

U.S. consumer price index rises just 0.1 percent in July on lower gas prices GantDaily.com

The headline inflation figure for July compares with the 0.3 percent advance in June. Economists had forecast a gain of 0.1 percent. Prices have climbed 2 percent in the past 12 months.

Foreign Demand Runs High for Treasury Inflation-Protected Debt

The U.S. consumer price index rose 0.1 percent from a month earlier, matching the forecast of economists surveyed by Bloomberg, after rising 0.3 percent in June, Labor Department data showed on Tuesday. Overall consumer prices gained 2 percent in the 12 months ended July, also matching forecasts, following a 2.1 percent advance the prior month.

Clearly what is being reported as CPI is the 2%, which is all items which includes food and energy.

 

[SteadyMercury]

ALso = Common Misconceptions about the Consumer Price Index Questions and Answers

The BLS publishes thousands of CPI indexes each month, including the headline All Items CPI for All Urban Consumers (CPI-U) and the CPI-U for All Items Less Food and Energy. The latter series, widely referred to as the "core" CPI, is closely watched by many economic analysts and policymakers under the belief that food and energy prices are volatile and are subject to price shocks that cannot be damped through monetary policy. However, all consumer goods and services, including food and energy, are represented in the headline CPI.

Most importantly, none of the prominent legislated uses of the CPI excludes food and energy. Social security and federal retirement benefits are updated each year for inflation by the All Items CPI for Urban Wage Earners and Clerical Workers (CPI-W). Individual income tax parameters and Treasury Inflation-Protected Securities (TIPS) returns are based on the All Items CPI-U.

 

[Lakhota]

There is NO RISK in privatizing SS and investing in stock market!!!

The Wall Street boys would love to get their greedy little hands on all that SS money.

 

[healthmyths]

IDIOT for a brother! NOT one person who accumulated that much money and was smart would have had it ALL in the stock market at AGE 68!
That was totally stupid on his part!
And he was an even BIGGER fool to have all that money by his "advisor" in the market!
Should have at age 68 had 20% in the market THE REST in SECURED investments!
DUMB F...k!

Ok, in your world, you would privatize SS, and then, when someone finds themselves at 75 with little or no income because of poor investment decisions, your answer to their being hungry and homeless is to say, "DUMB FUCK!". So, privatization is a great idea if you are a savvy investor, but you know, as well as I, that over two thirds of the people make no retirement plans at all, or poor plans, and therefor, should be left to starve, or sleep under a bridge.
Wow, Myth! You are just a bundle of good ideas and solutions!

FORWARD TO THE 1930's!!!!!!!

" that over two thirds of the people make no retirement plans at all, or poor plans, "???
WHERE did you get such misinformation dummy???
A) 2/3rds of WHAT people...???
B) At age 65 ...

[


Do you think I wrote ALL of the above?? Are you that f...king stupid???
Geez... right in front of your eyes and you still don't believe it!
What is the problem with people like you? Are you congenitally stupid?
AGAIN AND AGAIN... THESE aren't MY words!
Is factcheck.org making shit up?
Is The White House Office of Management and Budget making shit up??
How stupid are you really? Blaming ME?

Let me repeat. Social Security and Medicare payroll taxes have to be spent on SS and Medicare. They can't be spent on anything else, unless you consider the investment of the surplus in securities as something else. That is LOANED money.

AND THEY ARE you dummy! Who said they weren't?
But they are part of the total revenue coming in.
And they are part of the total expenses going out.
The problem you dummy is that there is MORE going OUT then coming IN!
AGAIN!!!
GOING OUT:
Social Security Administration mandatory enacted $817.5 billion
Department of Health and Human Services including Medicare and Medicaid $787.8 billion
Total of SS and Medicare GOING OUT $1,604 Trillion...
COMING IN: The Social Security/Medicare tax total revenue $925 billion counted as revenue!
LEAVES SS/Medicare needing $683 Billion!

Why is this such a hard thing to recognize?
SS/Medicare receipts $925 Billion... SS/Medicare Outlays $1.604 Trillion.. Shortfall $683 billion!
NOT complicated at all!

 

[boedicca]

They measure the categories, but exclude Food and Energy from the headline figure.

No, that is incorrect.

Having subtotals doesn't mean they exclude it from the headline, there are various measures they provide statistics on and CPI includes energy and food. Your chart shows for July 2014:

CPI all items = 2.0%
CPI all items less food and energy = 1.9%

Then what says the top paragraph from the summary at Consumer Price Index Summary

The Consumer Price Index for All Urban Consumers (CPI-U) increased
0.1 percent in July on a seasonally adjusted basis, the U.S. Bureau
of Labor Statistics reported today. Over the last 12 months, the all
items index increased 2.0 percent before seasonal adjustment.

What are the headlines for July 2014 CPI?

FOREX-U.S. dollar hits 9-month high against euro on strong housing data Reuters

In the 12 months through July, the CPI increased 2.0 percent after advancing 2.1 percent in June.

U.S. consumer price index rises just 0.1 percent in July on lower gas prices GantDaily.com

The headline inflation figure for July compares with the 0.3 percent advance in June. Economists had forecast a gain of 0.1 percent. Prices have climbed 2 percent in the past 12 months.

Foreign Demand Runs High for Treasury Inflation-Protected Debt

The U.S. consumer price index rose 0.1 percent from a month earlier, matching the forecast of economists surveyed by Bloomberg, after rising 0.3 percent in June, Labor Department data showed on Tuesday. Overall consumer prices gained 2 percent in the 12 months ended July, also matching forecasts, following a 2.1 percent advance the prior month.

Clearly what is being reported as CPI is the 2%, which is all items which includes food and energy.

The Food Inflation is bogus - it is based on substitutes, not the actual changes in the prices for specific goods.

 

[SmarterThanTheAverageBear]

I say we start by privatizing SSI and see how it goes.

Here's how we do it.

If you have a family member who can't work, it's up to your family to provide for that person.

Simple, oh and of course no more payroll taxes for SSI.