my argument is citizens should pay taxes to provide some of the best infrastructure in the world,
But that just isn't happening, now is it JHP...
SS is a ponzi scheme, especially if Gore is elected and succeeds in passing all of these governmental entitlement schemes that will have to be funded each and every year for decades...
Those entitlements will wind up leaving the SS trust fund with empty IOUs that will require the US govt to issue even more debt, with estimates ranging from between $11 - 40 Trillion.
But even worse, the SS trust fund actually forces the govt to increase the national debt each and every year since the only instrument it can be invested in is Govt debt, (and we know that what the govt borrows it spends).
The fact is that nearly 20% of the current government debt consists of SS trust fund obligations:
ssa.gov
And since the Treasury Dept is limited to what it can actually buy back in the government securities markets so as not to distort yields, the value of the dollar, or discriminating against commercial debt.
The government only started repurchasing debt last March and then only a paltry $1 billion worth of debt despite the fact that we had a $90 billion surplus:
foxmarketwire.com
policy.com
The reality is that the greatest majority of the surplus will find itself incorporated into the general governmental budget and IOUs placed in the trust fund. They simply can't buy enough debt back each year, certainly not $200 Billion worth, with drastically screwing up swap rates between government and commercial debt.
So that 10 year $2 Trillion surplus they keep talking about will really turn into a $1 1/2 Trillion in additional debt and governmental entitlement spending.
And that is $1 1/2 trillion that will be removed from the general private economy, spent by the government, and paid back by our descendants.
That's why getting Bush into office and restructing SS is now important. Gore obviously isn't going to do anything about it but maintain the status quo.
Regards,
Ron |
