Hey, Congress? Where's the money??

[Ghost in the Machine]

"Social Security taxes are paid into the Social Security Trust Fund maintained by the U.S. Treasury (technically, the "Federal Old-Age and Survivors Insurance Trust Fund", as established by 42 U.S.C. § 401(a)). Current year expenses are paid from current Social Security tax revenues. When revenues exceed expenditures, as they have in most years, the excess is invested in special series, non-marketable U.S. Government bonds, thus the Social Security Trust Fund indirectly finances the federal government's general purpose deficit spending. In 2007, the cumulative excess of Social Security taxes and interest received over benefits paid out stood at $2.2 trillion. The Trust Fund is regarded by some as an accounting trick which holds no economic significance. Others argue that it has specific legal significance because the Treasury securities it holds are backed by the "full faith and credit" of the U.S. government, which has an obligation to repay its debt."
http://en.wikipedia.org/wiki/Social_Security_(United_States)#Trust_fund

Here's an idea for you thieving politicians: Keep Your Hands OFF Of Social Security! Instead of doing your "creative calculating" try keeping it real simple: put the excess in an interest bearing account, then keep your hands OFF of it! Next year, put the excess revenues in this account again. See how this works?? When you do it this way, like you should have been doing all along, Social Security will never be broke. The excess, and the interest on it, will sustain the years when you happen to have a shortfall. If you cannot comprehend this concept, we can show you the door and elect someone who can.

If you want to cut "entitlements", how about we cut your excessive salaries and expense accounts, and let you live like millions of regular Americans live? What? You can't keep up a home in your home state and one in DC? There's a cure for that, too. We can set up a tent compound for all of you to live in. Hey, if it's good enough for our troops to live in those conditions in a war zone, it should be good enough for you too, right? (read more)
http://www.handsoffsocialsecurity.us/?q=node/35

[midnight]

1. K&R

[notesdev]

2. It's gone

Some will vehemently deny it, but they simply can't grasp the concept that those "special bonds" are simply another debt of the US government, and that the only backing to those bonds is the full faith and credit of the very same government which took the money with no plan to pay it back.

In case anyone still doesn't understand... here's an illustration:
http://www.youtube.com/watch?v=RAKsMnAM8vk

[galileoreloaded]

3. Yep, gone away, and just like a demand deposit you make into a bank

that "money" no longer exists as your asset, but the banks liability.

Such a simple concept, but people are just to scared (for good reason) to open their eyes.

ETA: Open CUSTODIAL ACCOUNTS ONLY!!!!

[notesdev]

9. It's worse than that

A bank needs to have at least a fractional backing for its liabilities. The US government operates on "full faith and credit", which means you need to believe a bunch of proven, pathological liars, and be willing to lend money to an organization $14 trillion in the hole with no plan to pay any of it back.

[Hannah Bell]

12. the fractional backing is negligible. what you're basically saying is the government

can rob workers who lend money to them in exchange for securities, but it can't rob rich investors in government securities.

of course the government redeems SS securities every month, but don't let that stop you from your appointed rounds.

[notesdev]

14. rich investors?

You mean like CALPERS?

Face it, there's no way out of taking the losses. Every time you suggest someone else should take the losses, that someone else turns out to be another bunch of people who by all rights don't deserve to be taking losses.

You seem to be under the illusion that anyone who holds any security is some independently wealthy investor whose wealth can be taken without consequence, when the reality is that the holders thereof are more likely than not to be an institutional pension fund.

I swear, you have the most compartmentalized sense of finance I have ever encountered. You think every problem can be solved by finding someone to take money from, and then you complain when you find out that the people who got taken from didn't deserve it!

[Hannah Bell]

15. lol. right, public pensions hold all the us securities. rich people? perish the thought.

The top 1% of americans owns nearly half of all domestic financial wealth. That includes US securities.

The bottom 90% hold less than 20%.



I believe one of the best ways to profit from change is to watch how the wealthy respond to it. I’ve often noticed that one of the distinguishing features of successful high-net-worth individuals is the ability to anticipate change. Simply put, the wealthy are able to see the implications of current events – the dangers and the opportunities – more clearly than the average investor...

Wealthy investors are starting to hedge their positions in long-term government bonds. First, and most obviously, they are reducing their holdings of long-term Treasuries, and shortening the average duration of their Treasury portfolios. So instead of holding bonds that mature in seven years or longer, they’re holding bonds that mature in three to five.

Secondly, some wealthy investors are starting to short long-term Treasury bonds with the intention of profiting from a possible coming bear market for bonds. Their preferred way to do this has been through the purchase of an inverse long-term government bond ETF.

http://www.theglobeandmail.com/globe-investor/investment-ideas/experts-podium/taking-cues-from-the-wealthy/article1565516/








give me the citations i asked for for your claims.

[lonestarnot]

4. Yeah, those same troops you lied into bullshit wars w/o end.

K & R!

[Octafish]

5. K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R

K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R K&R times infinity times infinity.

[pacalo]

7. +1.

:)

[OHdem10]

6. There was a guy on Cavuto today who has a job which gives

him access to the Actuaries and information .

He was telling Americans that they are in some cases
misinformed on SS. He says we are okay until 2036.
His message seemed to be--Do not be mislead. Do
not permit extreme changes in SS. He recommends
raising the cap higher. Of course Cavuto tried
to make him back down. He stood his ground strongly.

[pacalo]

8. That's interesting, considering the venue. I'm glad you caught it -- thanks.

[Hannah Bell]

13. you don't need access to the actuaries: the ss trustees put out regular reports.

but yes, americans have been grossly misled by the media. and by politicians & public figures.

[Ghost in the Machine]

10. Shameless kick

:kick:

[Swamp Rat]

11. k&r