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Politics : View from the Center and Left

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To: epicure who wrote (211143)	12/10/2012 12:11:38 PM
From: Wharf Rat	1 Recommendation Read Replies (1) of 541866

The money is being borrowed by the USof A, who pays interest on it. I don't want SS to keep a drawer of cash labeled "Rat." I don't want my bank to keep a drawer of cash marked "Rat". I'd like them both to invest in something safe which earns me interest. I can't think of something much safer than USTs. Even gold goes up and down. Maybe oil. "It's a pixie dust account." Only in the mind of wingers. You shouldn't go there. ssa.gov = There’s an interesting argument going on today between my colleague Charles Krauthammer and OMB Director Jack Lew. Krauthammer makes a case for both the ease and necessity of Social Security reform, and in particular a case against the Treasury securities that the Social Security program invests its surplus in. “They are worthless,” Krauthammer writes. “As the OMB explained, they are nothing more than ‘claims on the Treasury.’ ” Lew fires back over at the White House blog, noting that “these Treasury bonds are backed by the full faith and credit of the U.S. government in the same way that all other U.S. Treasury bonds are, making them anything but ‘worthless IOUs’ as Krauthammer suggests.... That said, it’s important to take Lew’s point about Treasury securities seriously. Treasury securities are considered among the single safest investments on Earth. It’s not overstating matters to argue that much of the modern financial system rests upon the confidence investors have in them. When you hear that investors are making a “flight to safety,” it means they’re buying Treasury securities. The same Treasury securities that the Social Security system purchases. If the government defaults on those bonds, the economy will fly into a tailspin. voices.washingtonpost.com

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