On 4/27/2011 5:19 PM, Max Sawicky wrote: > I previously posted the table showing the extent of cash needs for SS, > over and above the program's own income, for the next 75 years. The > increase from year to year is small.
Ah, OK. I saved that. I know I am repeating back to you what you said - but that's how I make sure I understand - that table shows the cash obligations for the SSA bonds if no changes are made to the SSA revenue side. Those obligations are very small. It is the hard data which shows there isn't a single day/year of reckoning when the SSA bonds are due. So the doom-and-gloom scenario isn't supported by the facts. > You might ask your friend why the financial markets are so dumb, since > their assessment of U.S. debt shows no effect of expected hyperinflation > or interest rate spikes. By day's end, the markets totally ignored the > famous S&P comment about US debt. He thinks the "economic fiction" has everyone hood-winked (but him). But imminently, people will realize it and we'll have "hyperinflation." I said, hrm, ok, then shouldn't you be borrowing like crazy? Highly-leveraged so you can pay back your loans with lesser-dollars? Of course, he isn't. > Now if there was an expected increase in projected borrowing in order to > finance liquidation of the Trust Fund bonds -- replacing Trust Fund > bonds with tradable bonds -- that could affect interest rates. > > My view on funding any shortfalls is to wait until they appear and use > general revenue (mainly income tax), just as we would do to repay the > Trust Fund in the interim. It sounds like you do not see the distinction? And maybe I am misrepresenting the difference between SSA and its FICA/payroll/bonds - vs. Gen. Fund and income tax (etc.). When we look at data on gov't costs, Social Security is listed right there on the same line as Defense, so maybe it isn't helpful to say it is something seperate. Thanks, Matt -- GnuPG Key ID: 0xC33BD882 aim/google/MSN/yahoo: beyondzero123 _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
