Who owns Americas debt?
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as usual, you fail to report the complete story. the truth is that of the ~$9B bedt, ~ $5B is held by none other thand your glorious federal government by none other than the Social Security Fund!!! that fact brings the actual debt held by forieng investors down to below 25% of the total; 75% is owned by americans, you and me included. get your facts straigh befoer you try to dump your partisan bullcrap on the rest of us, shrubbery.
by law (1984?), all the SS surplus has to be loaned to the general fund. there is no choice in the matter (unless congress decides to change it!!). even during the clowntoon 'surplus', the SS fund surplus was loaned to the general fund BY LAW!!!!
ask your dems if they are going to change that law (hahaha; yeah, right!). Of course, they won't have to since they refused to contribute in any way to change the SS mess coming just 10 years from now when the fund starts to take in less in payrolll taxes then it pays out and will need to make up the difference in the gen fund paying back the bond maturinty.
so starting in about ten years, there won't be any more SS surplus to bvaorrow anymore anyways.....and taxes are going to have to go WAY up to pay back the SS fund since all them long term bonds are gonna start coming due!
the truth is that of the ~$9B bedt, ~ $5B is held by none other thand your glorious federal government by none other than the Social Security Fund!!!
Ummm....the social security "trust fund" isn't like gold bars that you can store in fort knox.
the trust fund is invested in U.S. Treasury Securities, which are held by investors and banks worldwide
Shoot they don't even do that. They rob Peter and give him the money as if they were Scrooge on Christmas day.
uscitizen
Villified User
Yep, but in a few years Paul will have to start paying peter back. that will have to come out of general tax funds....This will cut into other programs and defense. which will add fuel to do away with SS, which I suspect was the origional plan in pushing thru the 1984 raid the pension law in the first place.
to be clear, the SS fund HOLDS about $5B in us treasury bonds, which cannot be traded on the open market. worldwide investors and banks and individuals HOLD the other ~$$B in us treasury bond debt.
the pro blem is that this when these bonds mature, the us general fund has to pay the SS fund back the face value of the bonds plus the interst established at the time of the sale. If the money was in a 'lock box', to coin a phrase (hehe), it would not have made any i nterest, but the general fnd would not have to pay it back to the SS fund.
so, yes, the SS fund COULD be treated like fort knox, if our wonderful representative shad seen fit to do so instread of digging a hole the general fund will have a hrd time digging out of....unless they go into a general fund surplus and then sell bonds to the normal investors and use that money to pay off the SS fund!!!!!!!! which is most likely what will happen...and maybe print a few bucks on the side to help out!
the thing I reember most in my AP history class in high school was when the teecher said "it is easier to pay off your debts during a timesof inflation".....makes me wonder if a bit of infaltion isn't good for the average debt loaded person while it makes the rich inconvenienced, which is why it is such a taboo.
and i wish this stoopid site would stop kckcing me off!!! i'getting sick of haveing to relog on every time i want to post!!!!!
and i wish this stoopid site would stop kckcing me off!!! i'getting sick of haveing to relog on every time i want to post!!!!!
uscitizen
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you have to say remember me and allow cookies.
But the inflation rate goes way up too. Also when like now wages lag far behind prices, it is not a good thing.
If everything stayed in proper relationship.... I would not mind paying 1,000 for a can of mountain dew if I made 100,000 an hour.
But the inflation rate goes way up too. Also when like now wages lag far behind prices, it is not a good thing.
If everything stayed in proper relationship.... I would not mind paying 1,000 for a can of mountain dew if I made 100,000 an hour.
that's my ppoint. it happened during the late 70s early 80s and iwages eventually DO rise up to cancel out price hikes. that has the effect of loweing your past debt percentage of your income.