General Discussion
In reply to the discussion: Heads-Up !!! - 'Why Democrats Might Cave On Social Security Cuts' - HuffPo [View all]Samantha
(9,314 posts)for every withdrawal the government would make from that fund to pay for the Baby Boomers retirement, it would have to sell the equivalent amount to other investors. In this economy, that is really hard if not impossible to do. I got this information from a talk Geithner had on the subject. So the essence of it is that all of the funds for years flowed in from the Baby Boomers overpaying their retirement, the Governments spent those funds on wars and other things, 9/11 happened, the 2008 catastrophe happened, Uncle Sam also started borrowing from the Federal Employees Pension Fund, and now there is a huge problem.
The Baby Boomers are retiring en masse and the monies represented by that Trust Fund are not available for the reason stated above. It is true that the largest debt holders of Federal Government debt is its domestic bond holders, and the Social and Medicare Trust Funds (don't hear much about that Medicare Trust Fund do we, but there is one) is a huge part of that. Two years ago when I first researched this, it was listed as #1 chunk of debt owed by the Federal Government.
Cutting part of that expense, payment to participants, would therefore RELIEVE the government of part of the repayment. Dollars to donuts I am thinking that is the way they would surreptiously write the legislation. I also believe that is why we hear so much about Federal employees pensions being too high. Uncle Sam owes them a lot of money as well. And here is a question I have never been able to find the answer to: where is all of the money the USPO was forced to prefund for 75 future years for employees pension and health care? And has any money been borrowed from that source?
Sam