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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (211783)	11/16/2004 8:20:02 AM
From: Road Walker	Read Replies (1) \| Respond to of 1573503

re: It would add money to the official deficit while reducing liabilities that don't show up as part of the deficit. The only real downside is that it will reduce income quicker then it will reduce payouts. You increase the deficit now, in exchange for less stress on the deficit in the future. To the extent that you have to pay interest for that amount of time it may increase the final deficit. Depending on the age where you are allowed to open a private investment account, and the age where you are not, it could be twenty or more years of payouts (for older retirees) without adequate revenue (from younger retirees). The estimates are in the $Trillions in incremental deficit in just five (?) years. Frankly, with the current record deficit, the dollar tanking, we just can't afford it. Certainly not with the tax cuts and the war costs. The value of the dollar, a very good proxy for the governments economic health is tanking. If Bush doesn't rein in his profligate ways, there is a significant chance of a third world style currency crisis. With 8-10 years of fiscal austerity (and probably a recession) we might then be able to pull this SS privatization thing off. We need a sense of fiscal reality. As appealing as the private accounts sound, we just can't do it without bankrupting the government. John