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Warren Stupidity

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47. Is there actual money in a treasury bill?

Wed Nov 14, 2012, 09:10 PM

Nov 2012

No, there isn't. And yet investors buy treasury bills at ridiculously low rates because they are such a safe and secure investment. What is in the trust fund are t-bills, backed by the full faith and credit of the us government. The FICA surplus is invested in interest bearing bonds, the government, as it does with all revenue form treasury notes, uses that revenue for current expenses, including of course payouts on debt.

It might seem circular and confusing, but really it isn't. The trust fund is not some huge mountain of debt that comes due in one 4trillion dollar swoop, it is an already accounted for part of the federal debt, and it will be paid out slowly to finance the boomer retirement, until the demographics return the account to a surplus as the boomers (alas that's me) fade away.

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Workers have been paying higher social security taxes than necessary for 30 years. In 1983, [View all] HiPointDem Nov 2012 OP

K&R Thank you for this important reminder. woo me with science Nov 2012 #1

There is zero reason for SS to even be mentioned in these discussions about Government Debt. sabrina 1 Nov 2012 #2

+1 HiPointDem Nov 2012 #3

Thank you. n/t dmr Nov 2012 #6

+1 leftstreet Nov 2012 #7

"infuriating there is no clear statement from the Dem leadership putting this Republican lie to rest RepublicansRZombies Nov 2012 #22

But didn't the gov't 'borrow' all that money over time? Flatulo Nov 2012 #23

If you have any "worthless" US TBills please sent them to me. Vincardog Nov 2012 #28

That has nothing to do with SS creating any deficit. That fund belongs to the people who paid sabrina 1 Nov 2012 #41

Thanks for the explanation. Isn't it also true that if the credit rating of the US Flatulo Nov 2012 #52

Well Lefty Thinker Nov 2012 #65

The SS fund "and by extension US" gets the interest Vincardog Nov 2012 #78

I am glad someone else is pointing this out. lalalu Nov 2012 #76

Yes, it is a huge lie and should be corrected every time it rears its sabrina 1 Nov 2012 #80

Except that the government has been borrowing against it for a long time. progressoid Nov 2012 #27

That's what I was thinking. Since the Trust is filled with IOUs, benefits are being Flatulo Nov 2012 #33

The difference is WE already paid for our SS--we DID our part truebluegreen Nov 2012 #39

Borrowing money to pay off debt is a harmless exercise. lumberjack_jeff Nov 2012 #45

Yes they have, which puts the American People in the same category as China and Japan sabrina 1 Nov 2012 #44

You would stop the SS Trust fund from earning interest? FogerRox Nov 2012 #50

Yeah, but the bank doesn't have the JoeyT Nov 2012 #55

well then please suggest FogerRox Nov 2012 #79

Tammy Baldwin for President, 2016. n/t AnotherMcIntosh Nov 2012 #34

Actually, there is one reason Mnpaul Nov 2012 #37

Well, the US Govt has other creditors, China eg. And I believe now, Japan. The SS fund they sabrina 1 Nov 2012 #42

+ 1000 ... SS is the best-funded program ever ... SomeGuyInEagan Nov 2012 #66

yup, and now they want to claim that we cant spend the surplus we have plowed into Warren Stupidity Nov 2012 #4

Is there actually money in that trust fund? ... or did the government borrow it all, meti57b Nov 2012 #18

They don't keep the money in a bank account ToxMarz Nov 2012 #29

If you have any "worthless" US TBills please sent them to me. Vincardog Nov 2012 #30

If US TBills ever become worthless, our troubles will be MUCH bigger than an SS debate SomeGuyInEagan Nov 2012 #67

Duh, tell it to meti57b with his "money has been spend" BS Vincardog Nov 2012 #77

Wasn't disagreeing with you, Vincardog. SomeGuyInEagan Nov 2012 #81

No need to apologize you are doing good. Keep up the good work Vincardog Nov 2012 #82

Of course the gov't spent it all. dixiegrrrrl Nov 2012 #31

I Know People Say That, Meti57b, On the Road Nov 2012 #40

Can a question be an oxymoron? lumberjack_jeff Nov 2012 #46

Is there actual money in a treasury bill? Warren Stupidity Nov 2012 #47

Yes. The Fund is composed of special obligation bonds. Starfury Nov 2012 #53

Thank you. I keep telling people this, & for some reason dmr Nov 2012 #5

I think it is obvious that the people need to launch their own campaign to counter this sabrina 1 Nov 2012 #8

Any ideas on how we can do this? dmr Nov 2012 #10

If Tammy Baldwin is the only one to openly defend SS at this point: Baldwin for President, 2016 AnotherMcIntosh Nov 2012 #35

Bernie Sanders has been all over this for some time now Samantha Nov 2012 #54

Thx. If the Reps are using this so that their "friends" can benefit, I wonder who their friends are. AnotherMcIntosh Nov 2012 #62

Their "friends" are the people who finance their campaigns who expect favors in return Samantha Nov 2012 #72

Well, maybe take a lesson from how the Republicans spread around their propaganda. They sabrina 1 Nov 2012 #43

Let's back up the cart . . . aggiesal Nov 2012 #25

The trust runs out in 2033 OnlinePoker Nov 2012 #63

3/4 not 1/3 PETRUS Nov 2012 #64

Edit the post to 3/4 vice 1/3 OnlinePoker Nov 2012 #74

Hope you get some rest eventually! PETRUS Nov 2012 #75

All that needs to be done to prepare for that eventuality sabrina 1 Nov 2012 #71

One of the MANY arguments, (ok heated discussions) I had with my Repub father back in the day,, benld74 Nov 2012 #9

The 1983 negotiations were bi-partisan. former9thward Nov 2012 #36

yep. the committee was bipartisan and the congresspeople who approved the final bill were HiPointDem Nov 2012 #48

HUGE K & R !!! WillyT Nov 2012 #11

Exactly!!! Jim__ Nov 2012 #12

+1 Dustlawyer Nov 2012 #13

k&r Starry Messenger Nov 2012 #14

Beautifully and Succinctly Said! cer7711 Nov 2012 #15

That's one reason SS has a $2.6 trillion surplus. ErikJ Nov 2012 #16

Yes you said it Liberalynn Nov 2012 #17

Kick. limpyhobbler Nov 2012 #19

That $3 trillion in bonds the SS trust fund? That's a $3 trillion claim on rich Americans' money. reformist2 Nov 2012 #20

Perfect! RepublicansRZombies Nov 2012 #21

Precisely Sherman A1 Nov 2012 #24

K&R Teamster Jeff Nov 2012 #26

K&R nt TBF Nov 2012 #32

And the Trust Fund earns interest Starfury Nov 2012 #38

Thank you, I now I have mentioned it many times, as it is another sabrina 1 Nov 2012 #56

Yes, but right wingers want it in the stock market where they can steal it. nt Live and Learn Nov 2012 #60

Thanks for the info and the link! LongTomH Nov 2012 #69

thank you. nashville_brook Nov 2012 #49

That's the deal and they are sticking to it Generic Other Nov 2012 #51

I wish to hell more people would remember this. Le Taz Hot Nov 2012 #57

I don't think most people knew it in the first place. HiPointDem Nov 2012 #58

100% right. Live and Learn Nov 2012 #59

When people retire they hoard _all_ their money in a teacup, right? Agony Nov 2012 #61

BUTBUTBUT GREENSPUD SAVED SOCIAL SECURITY! pansypoo53219 Nov 2012 #68

Very well stated and very well tying the cause the effect..... WCGreen Nov 2012 #70

Ah, the Great, Good Ronald Reagan! Laelth Nov 2012 #73