Reply #17: the very fact that real inflation is growing at an annual rate of 9 to 11% (not the ridiculously

[stockholmer]

low-balled and manipulated rate of 3 to 4% claimed by the Fed) WHILST treasury rates are at 50 year lows undermines the foundation of your 'loose monetary policy is not inflationary in a recession' claim.

Moreover, if you simply adjust for inflation (even using the fed's own understated number), the US GDP growth has been NEGATIVE since 2008.

Real and 'official' inflation data:

http://www.shadowstats.com/alternate_data/inflation-charts

Real and 'official' GDP data:

http://www.shadowstats.com/alternate_data/gross-domestic-product-charts

As to your claim that the "cut is not paid for with Social Security funds" , all i can say is that you can't have it both ways. If the payroll tax makes SS and Medicare 'self-sustaining' and the trust fund is 'independent' of any other US government debt (a premiss I vigorously dispute), then taking half of the funding source IS most definitely a threat. If you say that these funds will be paid back by the general fund, then you admit that the trust fund is indeed composed of IOU's (a premiss I completely agree to), and that therefore the trust is indeed NOT independent of the other debts incurred by the US goverment.

When the assets of the US are liquidated due to systemic debt/currency collapse via unlimited expansion of the US printed/assigned dollar supply, the 'trust fund' will NOT be set aside by the creditors who are holding trillions of semi-worthless debt instruments known as US Treasuries.