8 ms·

Yes. I feel much better right now knowing that Social Security is bankrupt and its obligations will only ever be met through the federal government's printing p

by lrm242 16y ago

Yes. I feel much better right now knowing that Social Security is bankrupt and its obligations will only ever be met through the federal government's printing presses. Aren't we all having fun now?

willfully_lost 16y ago
That's not at all true. Social Security's issues are massively exaggerated by certain groups. The real problems with regards to our "entitlements" is in Medicare. Unless the price of healthcare can be kept under wraps its going to be a nightmare. But there's too many people out there with a lot of money that don't want to see that problem dealt with.
- lrm242 16y ago
  Suggest you google "Is Social Security Bankrupt" and review the governments own projections. SS receipts are at parity or below obligations. It is, therefore, bankrupt and only maintained by the federal governments ability to run infinite* deficits. (*) Infinite, that is, until the Chinese and other foreign nations stop purchasing our debt.
  - msabalau 16y ago
    The Social Security trust fund has begun selling off it's very large supply of government bonds. This is exactly why the trust fund accumulated these assets. If a person or private pension fund accumulated a large supply of bonds in order to meet their obligations, it would be very odd to describe them as "bankrupt". Indeed, if I had enough bonds and income to meet my obligations for decades to come, I might well describe myself as being in possession of "fuck you money" Going forward, in general, the Federal Government will not be able to rely on the Social Security Trust fund purchasing the bonds it issues. It can cut spending, raise taxes, or find other buyers who want to purchase bonds. There is no particular reason to be concerned about the ability of the Social Security system, for years to come, to support it's obligations to the workers who have paid into the system. Unless, of course, you fear that wealthy elites will manufacture a bogus social security "crisis" to dispossess the savings of workers and continue to enjoy (federal spending/tax cuts) that can not otherwise be sustained.
    - lrm242 16y ago
      You're living in a fantasy world: http://money.cnn.com/2010/02/02/news/economy/social_security_bailout.fortune/index.htm http://money.cnn.com/2010/02/02/news/economy/social_security...
amh 16y ago
I'm amused how the snarky, content-free comment critical of Bush gets upvoted, while this snarky yet entirely correct response is downvoted. I think some people here don't grasp the seriousness of the US government's financial situation, and how much it worsens the longer the recent status quo is maintained.
- joezydeco 16y ago
  The Bush comment wasn't to criticize the president, just distinguish it from the Clinton-era proposal that said the same thing but didn't capture the public debate like the proposal in 2001-2002 did.
lutorm 16y ago
Social Security is not bankrupt. It has massive assets, and is fiscally sound until sometime in the 2040s. The problem is that the government has borrowed that money and used it for other stuff. It now needs to start paying it back, but that's no different than any other loan you make.
- yummyfajitas 16y ago
  The government has massive liabilities precisely equal to it's massive assets. I could loan myself $100 billion dollars, and then claim I own $100 billion in assets. But if I earn $25,000 and my expenses are $35,000, I'm still broke.
- anamax 16y ago
  > [SS] has massive assets Those "massive assets" are T-bills. If push comes to shove, who do you think will get shafted - SS or China? More to the point - how much are you personally willing to pay to maintain the SS benefits for folks 10-20 years older than you? How much do you think that folks who are 10-20 years younger than you are willing to pay to maintain your SS benefits?
  - jbooth 16y ago
    What happens if we put it all into the stock market and the baby boomers retire? I really don't want to see a stock market that has 3x the money coming out as is coming in.
    - anamax 16y ago
      The stock market is ownership of various kinds of assets. The demand for those assets will change. However, it is world-wide. And, there are income producing assets. Folks are saying "I'd rather have an iPad than $400 even though I know that that ipad costs only $35 to make". T bills are a claim on future US tax revenue. That's very different.
      - jbooth 16y ago

by lrm242 16y ago

Yes. I feel much better right now knowing that Social Security is bankrupt and its obligations will only ever be met through the federal government's printing presses. Aren't we all having fun now?

willfully_lost 16y ago

That's not at all true. Social Security's issues are massively exaggerated by certain groups. The real problems with regards to our "entitlements" is in Medicare. Unless the price of healthcare can be kept under wraps its going to be a nightmare. But there's too many people out there with a lot of money that don't want to see that problem dealt with.

lrm242 16y ago
Suggest you google "Is Social Security Bankrupt" and review the governments own projections. SS receipts are at parity or below obligations. It is, therefore, bankrupt and only maintained by the federal governments ability to run infinite* deficits. (*) Infinite, that is, until the Chinese and other foreign nations stop purchasing our debt.
- msabalau 16y ago
  The Social Security trust fund has begun selling off it's very large supply of government bonds. This is exactly why the trust fund accumulated these assets. If a person or private pension fund accumulated a large supply of bonds in order to meet their obligations, it would be very odd to describe them as "bankrupt". Indeed, if I had enough bonds and income to meet my obligations for decades to come, I might well describe myself as being in possession of "fuck you money" Going forward, in general, the Federal Government will not be able to rely on the Social Security Trust fund purchasing the bonds it issues. It can cut spending, raise taxes, or find other buyers who want to purchase bonds. There is no particular reason to be concerned about the ability of the Social Security system, for years to come, to support it's obligations to the workers who have paid into the system. Unless, of course, you fear that wealthy elites will manufacture a bogus social security "crisis" to dispossess the savings of workers and continue to enjoy (federal spending/tax cuts) that can not otherwise be sustained.
  - lrm242 16y ago
    You're living in a fantasy world: http://money.cnn.com/2010/02/02/news/economy/social_security_bailout.fortune/index.htm http://money.cnn.com/2010/02/02/news/economy/social_security...

amh 16y ago

I'm amused how the snarky, content-free comment critical of Bush gets upvoted, while this snarky yet entirely correct response is downvoted. I think some people here don't grasp the seriousness of the US government's financial situation, and how much it worsens the longer the recent status quo is maintained.

joezydeco 16y ago
The Bush comment wasn't to criticize the president, just distinguish it from the Clinton-era proposal that said the same thing but didn't capture the public debate like the proposal in 2001-2002 did.

lutorm 16y ago

Social Security is not bankrupt. It has massive assets, and is fiscally sound until sometime in the 2040s. The problem is that the government has borrowed that money and used it for other stuff. It now needs to start paying it back, but that's no different than any other loan you make.

yummyfajitas 16y ago
The government has massive liabilities precisely equal to it's massive assets. I could loan myself $100 billion dollars, and then claim I own $100 billion in assets. But if I earn $25,000 and my expenses are $35,000, I'm still broke.
anamax 16y ago
> [SS] has massive assets Those "massive assets" are T-bills. If push comes to shove, who do you think will get shafted - SS or China? More to the point - how much are you personally willing to pay to maintain the SS benefits for folks 10-20 years older than you? How much do you think that folks who are 10-20 years younger than you are willing to pay to maintain your SS benefits?
- jbooth 16y ago
  What happens if we put it all into the stock market and the baby boomers retire? I really don't want to see a stock market that has 3x the money coming out as is coming in.
  - anamax 16y ago
    The stock market is ownership of various kinds of assets. The demand for those assets will change. However, it is world-wide. And, there are income producing assets. Folks are saying "I'd rather have an iPad than $400 even though I know that that ipad costs only $35 to make". T bills are a claim on future US tax revenue. That's very different.
    - jbooth 16y ago