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Social Security trust funds have been used to keep our dollar/treasuries inflated and are one of the biggest customers of those bonds. They will always have a b
by drawkbox 10y ago
Social Security trust funds have been used to keep our dollar/treasuries inflated and are one of the biggest customers of those bonds. They will always have a buyer and part of the reason they are in demand since the mid 1930s. When people talk about removing SS they don't realize what it would do to treasuries as a product, demand would be much lower and so would the value of the dollar.
Social Security is the largest owner of US Debt: http://www.forbes.com/sites/mikepatton/2014/10/28/who-owns-the-most-u-s-debt/#34ed09131907 http://www.forbes.com/sites/mikepatton/2014/10/28/who-owns-t...
- toomuchtodo 10y agoWe should probably not position ourselves where we require an inflated dollar then, since those trust fund dollars are going to be drawn down as everyone ages onto Social Security.
- drawkbox 10y agoI agree, it is a bit of a house of cards as they say. From the article: The largest owner of U.S. debt is Social Security. Since the Social Security system is a government entity, how can the government own its own debt? Good question. This is where the “house of cards” theory resides. Some believe the federal government is merely moving the IOUs from one shell to another, hoping to escape the watchful eye of its citizens. In any event, Social Security owns about 16% of the debt followed by other federal government entities (13%), and the Federal Reserve (12%. My guess is when it is time to pay or the money dries up, they are going to just disregard the Social Security debt owed or stretch it way out so the house of cards stays up a bit longer.
- toomuchtodo 10y ago> they are going to just disregard the Social Security debt owed or stretch it way out so the house of cards stays up a bit longer. I disagree. Taxes with simply rise (as they should've long ago).