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View Diary: Short and Succinct on MY Social Security (223 comments)

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  •  what means 'never, ever touched'? (5+ / 0-)
    Recommended by:
    miguelmas1, elwior, worldlotus, zett, JVolvo

    Trust fund has already been massively borrowed from.  I count that as 'touched.'

    'Give away to the rich and punish the poor for the extravagance.....crazy' --LaFeminista

    by MsGrin on Sat Jul 23, 2011 at 07:00:58 PM PDT

    [ Parent ]

    •  changes made (3+ / 0-)
      Recommended by:
      worldlotus, Hawkjt, zett

      is what I'm referring to.  That's why I gave examples like raising the SS cap and negotiating for drugs in Medicare.    We can't just have a knee-jerk reaction that no changes should ever be made.  We should be advocating for those changes that are good.

    •  No, no, no. It HASN'T been touched. (0+ / 0-)

      The Social Security Trust Funds (there are two) were established by the Social Security Amendments of 1939 which modified the original Social Security Act of 1935. Under both laws all excess receipts of Social Security are MANDATED to be invested/parked in securities fully guaranteed to principal and interest by the Federal government. Which in practice means Treasuries. And the pure fact is that when anyone buys a Treasury whether that be your pension fund, the Chinese Central Bank, or the Managing Trustee of Social Security it scores on the other side of the ledger as an act of borrowing.

      What some people see as some sort of shifty nefarious diversion of funds is what clear eyed investors see as a process they call "Buying a bond".  When Bill Gross of Pemco 'invests' millions and billions in Treasuries he is simply lending money to the government in return for a promise. Social Security is no different and only people who want to convince you that the money is gone want you to believe something went astray.

      The Social Security Trust Fund was cash flow negative more years than not from 1956 to 1982 and every year from 1971 on. And there was never any question whether the government would honor the Special Treasuries that represented the money they borrowed from the funds, every penny of interest and then principal was paid until almost literally the next to the last penny.

      There has been no 'raid', no 'theft', no 'diversion' of Trust Fund assets. Every penny ever sent to Social Security was expended as directed under the framework established with the 1935 Act as modified by the 1939 and subsequent Amendments, or retained in precisely the form mandated by the 1939 Amendments.

       Don't buy into the hype that insists the horses are already out of the barn and so don't mind the rustlers trying to break in. Every horse, er penny, is safely in its stall as designed by barn builders FDR and Frances Perkins.

      Please visit, follow or join our Group: Social Security Defenders

      by Bruce Webb on Sun Jul 24, 2011 at 08:59:26 AM PDT

      [ Parent ]

    •  WHAT???? (0+ / 0-)

      "Trust fund has already been massively borrowed from.  I count that as 'touched.'"

      As opposed to what - a giant mattress in the basement of the Treasury????

      Got a saving account? The bank borrowed every last dime of it. It's been "touched". The law requires that the extra money over pay-go be used to buy treasuries. Duh... That's "touched" with interest like all treasuries (bonds, etc.).

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