I know how to "fix" Social Security

[SlipperySlope]

The rethuglicans say Social Security is broken because the US Government Bonds that are held in the trust fund are for some reason worthless and can't ever be redeemed.

I say bullshit. And I know how to turn the rethuglicans against themselves.

Social Security should auction it's soon-to-vest bonds to Wall Street banks and only accept cash in payment. The bonds, backed by the full faith and credit of the US government, should sell to Wall Street for close to face value. Then Social Security would hold a trust fund full of cash and be unimpeachable by the rethugs.

And then, you know those "worthless" US Government Bonds? I'm sure the rethugs would be falling all over themselves about what a sacred and holy duty the government had to repay them once they were held by Wall Street banks instead of Social Security.

[Make7]

1. Trust Fund FAQs

http://www.ssa.gov/OACT/ProgData/fundFAQ.html
 

[SlipperySlope]

2. You missed my point...

If the SSA sold even some of the bonds to private banks, the whole "they can't really be redeemed" argument of the pugs would just fall apart.

I know, they can't really sell the special-issue bonds, but it just illustrates how corrupt the republicans are on this issue.

Actually though, that gives me a great idea. All that would really have to be done would be for the special-issue bonds to be declared marketable.

[Make7]

3. The SSA redeemed $950 billion special issue securities from the trust funds last year. ( n/t )

[MajorChode]

7. And promptly reissued them

SS is still running a surplus budget which means none of the so-called 'trust' fund has actually been used to fund SS liabilities.

[ejpoeta]

4. i remember watching something... probably michael moore thing, but

not sure, that talked about how they've been robbing the trust. all those bonds are actually IOUs and that would explain the idea that they are worthless. Remember when gore got brutalized for talking about putting that money in a lockbox to protect it. well in retrospect it wasn't a joke. they've been stealing from it.

[Motown_Johnny]

5. they "steal" that money so that they borrow less because of the deficit

so instead of paying even more interest for borrowed money they use the money collected from SS.


The problem is the debt and the deficit.


If we could get back to surpluses then that money could be paid back into the system.

[Mnemosyne]

9. I remember * himself claiming that all there is are worthless IOUs. n/t

[FBaggins]

6. What happens when the supply of a commodity doubles but demand stays the same?

The price collapses.


Second question... what does the Federal reserve do when it wants to take money out of the system and constrict the economy? It sells government securities in exchange for cash. And this move would be many MANY times larger. What would the impact be on the money supply?

Your plan would make the current/recent recession look like a stroll in the park. Sorry.

[rucky]

8. We know what happens to large pools of cash sitting around.

They'll double down on "reform" just to get at it.