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In reply to the discussion: Ultra Low Interest Rates A Threat To Social Security [View all]FBaggins
(26,721 posts)13. The entire premise of the article.
Low interest rates do not, in fact, endanger Social Security.
Congress can set ANY interest rate for SS it wants.
Untrue - but also irrelevant. By law, the trust fund is invested in US treasuries and rates are set by the market - but even if we changed the law and set a higher rate... the money doesn't magically appear. It has to be paid out of government revenue.
Of course - this whole thing is a game where we pretend that there's actually a pool of cash sitting there for future retirees... but let's skip that one.
The entire premise boils down to "SS doesn't have enough money and we should throw more at it". That isn't caused by interest rates.
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From previous reports. Just because they're not online does not mean they do not exist.
jeff47
Mar 2016
#41
Well, yeah Congress can always amend the SS Act. But until they do that, it's pretty much a market
Hoyt
Mar 2016
#28
I think they have driven rates down in the hopes of spurring job creating business.
Hoyt
Mar 2016
#29
And it hasn't worked well because of other issues that only Congress, not the Fed, can address.
strategery blunder
Mar 2016
#47
Agreed. Allowing giant banks to borrow money for free from the taxpayers without no requirement
GoneFishin
Mar 2016
#51