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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: JBTFD who wrote (17472)	2/9/2009 11:18:58 AM
From: Real Man	Read Replies (1) \| Respond to of 71456

Technically, the government can't be insolvent in the absence of the gold standard, since they've got the printing press. States can be (California), since they don't. However, given the current policies, one can expect a significant abuse of this great privilege of printing money in the future starting this year. -g-

To: JBTFD who wrote (17472)	2/9/2009 3:06:36 PM
From: GST	1 Recommendation Read Replies (2) \| Respond to of 71456

Social security is an income transfer program -- the "surplus" was intended to smooth out the payment process. Social security is not designed to be "funded". It is designed to transfer money from those who work to those who are retired as a "pay as you go" plan. It is not matter of whether or not it has "funds", it is a matter of how it is designed. It is designed in such a way that a shrinking number of people will be supporting a growing number of people, and there will be no temporary "surplus" to fill the void. The way social security is designed we are left with two choices -- lower what we will pay people in retirement or increase the taxes levied to pay for it. The gap is huge -- and it is this gap which is a near certainty to develop in coming years that causes people to refer to it as "bankrupt". It is bankrupt by design and must be redesigned one way or another -- that is already baked into the cake and that is a basic fact of life.