Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 16, 2005
- Messages
- 17,321
You seem to think that the SS trust fund is an independent entity from the Federal Government. It isn't. Me 'borrowing' from my penny jar in return for an IOU isn't a transaction that creates an asset . . . it depletes an asset.
There is also an underlying assumption to this whole line of reasoning that is false: that SS beneficiaries have a legal claim to the 'assets' in the SS trust fund. They do not.
A simple example shows the fallacy of this assumptions.
The government has the legal authority to eliminate all current and future SS benefits. Once done, the Social Security Trust Fund can return all of it's 'Bonds' to the Treasury as the fund no longer has any obligations. The Treasury can then retire those trust-fund bonds and they cease to exist.
The trust fund owns nothing. And you have no claim on that nothingness.
No, I do not believe that... just to clairify...
I also know that the SS fund has never ever indicated that it was a system that had assets that was there to pay future benefits... pure and simple it is a ponzi scheme...
I was just pointing out that their is accounting rules that they have to follow for fund accounting... you rightly point out that they can change the rules and 'retire' the debt, but until they do they still have the bonds to pay... And who is to say that they do not pass a law stating that they will not pay any savings bonds held by individuals To me it is basically the same.... the gvmt is not going to extinquish the debt by fiat....
I was pointing out that there is a separatly accounted fund that 'lent' its money to another separatly accounted for fund... the second fund now has to pay back the first... the second fund did not have to borrow from the first, but could have borrowed from you... what is the difference? Nothing... it borrowed the money and spent the money.... now the second fund has to get the money to pay back either the first fund or you.... anything you say that can be done to not pay back these bonds can be done not to pay back you... either of these come with big political risks that nobody whats to get into...
If you think about it a bit.... any borrowing from the gvmt is just a way to delay raising taxes...