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View Diary: Newsflash: Social Security is Not 'Going Broke' (21 comments)

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  •  Wrong (1+ / 0-)
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    jamess
    The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

    To borrow money on the credit of the United States;

    To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

    To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

    To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

    The congress has no obligation to remove money from the private economy in order to pay those debts. We use the system we use because it is believed to be more stable than just printing money. At the moment, that belief is being challenged by reality as the whole world watches the money center banks retreat from their responsibility to foster circulation. These "crises" are largely fictional. The biggest thing wrong iin the world is the systematic sequestration of money by Corporate elites.

    "If I pay a man enough money to buy my car, he'll buy my car." Henry Ford

    by johnmorris on Fri Jul 22, 2011 at 07:28:43 AM PDT

    [ Parent ]

    •  Wrong ? (0+ / 0-)

      Not one word in there, came from anywhere but the CBO..  a report that has been online for years..  more than enough time for them to correct it, if it's "wrong"..

      .. and the point is obvious.. They're admitting that the SS funds have been spent...  the trust-fund is just a paper trail..

      No big "news flash".. just the a CBO acknowledgment, that as SS payouts exceed its receipts.. the difference is real spending today (in no uncertain terms).. and since spending today is 42% borrowing.. well, be honest.. we know what it means..

      Trying to HIDE these facts over the years, is what got us to this point..

      Now.. your beef is withe the CBO, not a guy who relays what they acknowledge..

      •  The CBO (0+ / 0-)

        is required to make the assumptions it makes as part of the original deal. It has to assume that the only credits available are taxes and bonded indebtedness. That doesn't limit the Congress's power. If they so choose, they could move the Federal Reserve into the government and take over the creation of money or order the Treasury to increase the general fund arbitrarily.  One of the curiosities of last week's deficit kabuki was Bill Clinton opining that Obama had the power to ignore the debt limit and fund already appropriated activities with debt because the 14th amendment doesn't allow him not to.

        "If I pay a man enough money to buy my car, he'll buy my car." Henry Ford

        by johnmorris on Fri Jul 22, 2011 at 10:19:25 AM PDT

        [ Parent ]

        •  So.. it's not wrong.. (0+ / 0-)

          .. The SS surplus has been spent, the trust-fund is just a paper-trail.. just as I thought, and the CBO confirmed.

          The only thing that puzzles me, is what's to be gained by trying to convince people of something other than that simple fact. I mean, for those willing to investigated, there is no confusion. It's as factually recorded as a bank statement...  the current ~$49B shortfall WILL be a General Fund expenditure, line-item, TODAY  ... and it wouldn't matter one bit to today's spending/deficit/debt, if it went straight from the General Fund to the SS recipients, or if it was funneled first to "repay" T/F bonds (as in, balance the paper-trail). (even the CBO calls those "investments", as in, enclosed in quotes.

          but they are basically an accounting device, and their balances, even if "invested" in Treasury securities, provide no resources to the government for meeting future funding commitments

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