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Yo_Mama

(8,303 posts)
38. You are wrong
Sun Dec 23, 2012, 08:50 PM
Dec 2012

What's in the SS trust fund, and also in the federal government retiree trust fund, are "special obligations". These obligations are both bought and sold by different branches of the US government.

Thus they do not add to the total of federal debt held by the public (actual borrowed debt), although they are constrained by the debt limit.

The Fed is telling Congress to default - to modify entitlement programs so as not to actually float that debt.

Our creditors very much do not want that debt to be converted to marketable securities, because then it competes with them for their right to federal government revenues for repayment. If all the special-obligation securities in government trust funds were converted into US Treasury marketable obligations, our current federal debt held by the public would be more than 100% of GDP, which is a level at which private investors get scared about risk.

Social Security on Facebook [View all] ashling Dec 2012 OP
Beautiful Eddie Haskell Dec 2012 #1
I am not sure that the notes in the "SS trust fund" are adequate for 60 years Kolesar Dec 2012 #2
Actually, it's at least 75 years, as far out as has been reviewed MannyGoldstein Dec 2012 #3
Countries with "no population growth" are the ones in trouble Kolesar Dec 2012 #5
The entire planet is in trouble with any population growth. MH1 Dec 2012 #9
Zactly xtraxritical Dec 2012 #12
Thank God for you, Manny..... plethoro Dec 2012 #6
Bottom line here: D.C. doesn't want to pay back the trillions of dollars borrowed/embezzled savannah43 Dec 2012 #26
well now, Dyedinthewoolliberal Dec 2012 #51
I hope you are right, but I think the fix is in..........nft plethoro Dec 2012 #52
The language in the linked Facebook post is misleading. Jim Lane Dec 2012 #7
Really? So there is one standard for the USPO, but not for any other governmental savannah43 Dec 2012 #27
Yes, that's exactly right. Jim Lane Dec 2012 #43
The shortfalls were based on pessimistic projections and go clear back duffyduff Dec 2012 #8
Here is the Trustees report for 2012, which disputes your assertion Yo_Mama Dec 2012 #18
That report is from Timmy Geithner MannyGoldstein Dec 2012 #22
If We took all of Mitt Romney's Assets out of the equation PrMaine Dec 2012 #11
SS current income from taxes is currently not covering outgo Yo_Mama Dec 2012 #16
That little slight of hand goes right over the heads of many people. savannah43 Dec 2012 #31
Are you forgetting interest on the Treasury bonds purchase by the SS Trust Fund? nt MannyGoldstein Dec 2012 #35
No, I'm not Yo_Mama Dec 2012 #37
Sorry, I'm a bit tired tonight MannyGoldstein Dec 2012 #39
You're both right. Jim Lane Dec 2012 #42
Yes, that's correct, Manny Yo_Mama Dec 2012 #46
The problem is that there are no external financial assets in the trust fund Yo_Mama Dec 2012 #20
So, what you are saying is that US Government is about to default on one sabrina 1 Dec 2012 #25
No, I"m not saying we are about to default. We don't need to Yo_Mama Dec 2012 #36
But are you saying it's more OK to default on SS payments MannyGoldstein Dec 2012 #40
Depends on your perspective, I suppose Yo_Mama Dec 2012 #45
The US Govt has never and will never default on its obligation to any of its sabrina 1 Dec 2012 #48
US Gov has defaulted multiple times. In the modern era, with Liberty gold bonds Yo_Mama Dec 2012 #54
Lol, I've read all that before. And it's interesting how it neglects the actual sabrina 1 Dec 2012 #47
The bonds in which the trust fund is invested say "backed by the full faith and credit of the US" lumberjack_jeff Dec 2012 #29
You are wrong Yo_Mama Dec 2012 #38
The SS trust fund is part of the public debt. lumberjack_jeff Dec 2012 #41
Thank you. Amazing to see this garbage on DU, seriously. The decades old sabrina 1 Dec 2012 #49
Not a complete red herring. Look how BushCo used it. savannah43 Dec 2012 #32
But Ronnie Raygun needed the money to buy more bombs! WhoIsNumberNone Dec 2012 #4
As did, unfortunately... awoke_in_2003 Dec 2012 #10
Yeah, but Ronnie got the ball rolling WhoIsNumberNone Dec 2012 #13
Very true... awoke_in_2003 Dec 2012 #53
And they (Rethugs) laughed at Al Gore's Social Security Lock Box. n/t Fla Dem Dec 2012 #23
I forgot about that. Al? Write something about that, please? savannah43 Dec 2012 #33
The change was made around 1960 Yo_Mama Dec 2012 #15
History will not be nice to Ronnie. He cut taxes and then A Simple Game Dec 2012 #17
Incredibly inaccurate Yo_Mama Dec 2012 #14
Current SS trust fund receipts are $837,827 LastLiberal in PalmSprings Dec 2012 #19
SS will always be mostly funded by current income Yo_Mama Dec 2012 #21
You know Lordquinton Dec 2012 #28
You are not factoring in that this "fund" is earning interest Curmudgeoness Dec 2012 #34
How many more decades is this false narrative about SS going to persist? sabrina 1 Dec 2012 #50
Amen. The truth is out there! savannah43 Dec 2012 #24
This is worded badly. lumberjack_jeff Dec 2012 #30
the biggest problem social security faces is.... madrchsod Dec 2012 #44
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