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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (46759)	12/7/2005 3:52:34 PM
From: GraceZ	Respond to of 110194

If SS, exactly as it stands, were offered by a corporation specializing in retirement annuities instead of by the government we'd have had a congressional committee investigation along with numerous indictments. Even if the individual private accounts primarily invested in Treasury bonds it would be a better situation than what we have now because the government would have to pay out the interest from revenues as they do with other Treasury debt owned by the public. The assets would have a value on the open market. Maybe they'd be able to attract a certain number of people into securities which simply accrue interest rather than pay it out like Series EE or iBonds but I'm sure it wouldn't be as much as 40% of the debt outstanding. The reason this would be better is that it is debt service which tends to put the brakes on borrowing not future liabilities that only exist in dubious projections. If you have to decide between paying x amount of dollars in interest or spending those finite revenues on something else, the government is forced to make the difficult choices as to what to fund. Their borrowing ability would be strictly limited by what they can service from revenues as well as what the market for their securities would offer them. As it stands we are compelled by law to participate, that is if you want to earn a wage.