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In reply to the discussion: Here's a soft lie that must be debunked before it gets off the ground! [View all]paleotn
(17,911 posts)I'm sick and tired of this "IOU" BS. That goes for Alan "cat food" Simpson AND Bernie Sanders. Words mean something, folks. Intentionally using incorrect terminology is the same as lying. They're called US Treasury securities, thank you very damn much, backed by the full faith and credit of the United States. They can't be arbitrarily "called in", but like any asset can be sold on the open market or, at maturity, cashed in or rolled over into new securities. Thus, they are not just "IOUs", Simpson, you ass, but financial assets with value the world over.
And no, the US government did not "raid" the "trust fund" for years on end. A simple question, what's the SSA supposed to do with FICA revenue not needed to pay current obligations? Simply park it in some half ass "lock box", akin to stuffing it in a mattress? Uh, no. It's invested in what's considered the safest, income producing securities on the planet. Yes, US treasuries.
Safest? Yes. In fact, we've been using interest rates on T-Bills to approximate the risk free rate of return for generations. If, in some bizarre universe only Alan Simpson could imagine, the Feds default on ANY treasury security EVER, SS funding will be the least of our problems, as the entire global financial system crashes into a mangled heap. Yes, folks, that's a depression to awful to even comprehend. In short, I'm sick, and damn tired of politicians who know better, playing on the financial ignorance and fear of most Americans.