Liberal Political Pet Peeves of 2011

I got as far as
"Social Security taxes, on the other hand, are put into a low yield trust"

and couldn't take it any more.:dumb:
 
Being better than a Republican doesn’t make you a good president any more than being a better singer than William Shatner means you should win a grammy.
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true dat.
 
Fluffy said:
Explain.
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Here is how it works.

Each year, employers and employees each contribute 7½% of the employee's payroll into the SS fund.
Each year this money is used to pay current retirees.
Each year there is a surplus of money left over that goes into the Social Security Trust Fund.
That money is used to buy "Special Issue" bonds from the US Treasury; and yes, it pays interest.

In 1964/65, with all the wisdom that the Democrat Senate, the Democrat House, and the Democrat President (LBJ) could muster, they decided that this money could be removed from the Trust Fund and placed into the general fund to be used to pay for anything that Congress wanted to use it for.

They (Democrats) in turn, replaced those funds with IOU's.
The "Lock box" doesn't contain any real money, is now full of IOU's!

And to add insult to injury, the interest that those "Special Issue" bonds generate each year is also raided, and replaced with IOU's.

Each year the CBO tells Congress the state of the fund, and how long it will be before the pay out exceeds the income. Each year the Congress puts on it's blinders, and kicks the can down the road for the next Congress to deal with.

The Trust Fund? It's a filing cabinet in West Virginia full of IOU's!
 
Fade said:
The "Lock box" doesn't contain any real money, is now full of IOU's!
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A government bond IS an IOU. When you or anyone else purchases a government bond what is purchased is an IOU (with interest). The government then puts those funds raised by the bond sale into general funds to spend as it will.

If you own US government bonds (as the Chinese do, for example) then you own IOUs backed by the full faith and credit of the United States. The money that you paid for them was spent by the government but they still owe you. That is precisely what bonds are.

So when people trot out the IOU thing, they are merely rephrasing the same fact. A bond is an IOU - that is all it is - but it is the IOU of an entire nation, not Joe Bloggins down the street. If you don't trust the IOUs of the United States then you don't believe that your country can pay it's debts and that is fair enough but bare in mind that the dollars in your bank account are also IOUs that are ultimately backed by government bonds so if the Social Security bonds are worthless then so are dollars.

The US dollar is also just an IOU but I don't hear too many people making the argument that they are therefore worthless. Lot's of people are still willing to believe that the O will be made good. If bonds are good enough to back the money supply then they should be good enough to back Social Security.
 
FluffyMcDeath said:
The US dollar is also just an IOU but I don't hear too many people making the argument that they are therefore worthless. Lot's of people are still willing to believe that the O will be made good.
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Cough, cough...

Vote Ron Paul.
 
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lol
 
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