Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: combjelly who wrote (749104)	10/24/2013 11:24:09 AM
From: TideGlider	1 Recommendation Recommended By FJB Read Replies (1) \| Respond to of 1573921

The money that comes in goes into the general treasury. There is no real trust fund. Just IOUs

To: combjelly who wrote (749104)	10/24/2013 11:53:50 AM
From: i-node	2 Recommendations Recommended By FJB TideGlider Respond to of 1573921

The money that comes in goes into the trust fund. That is not how a Ponzi scheme operates. It doesn't matter if it goes under the trustee's mattress. Where the money goes has nothing, AT ALL, to do with the characterization of a Ponzi scheme. Duh. It is currently taking in more than it is spending and will continue to do so for decades unless the Republicans crash the world economy again. This simply is not correct. Beginning in 2010, SS started spending more than it is taking in in payroll taxes. At that point the federal government began BORROWING money (from the trust) to cover SS benefits, the first year requiring 37 Billion, an amount which increases annually from now on until something is done about it. The current estimates are that the SS Trust will be depleted of funds in 2037. The salient feature of a Ponzi scheme is not how the money is stored; it is where it comes from. Instead of payouts based on returns of capital and earnings on invested money, a Ponzi scheme takes money from current contributors and pays it out as though it were returns of capital or earnings. Precisely what SS is doing today as it "borrows" money to pay out benefits. The problem here is cash method accounting, which should never have been used and has led to mass confusion on the parts of many about the financial position of the trust. Even smart people who don't understand basic accounting are utterly confused by it.

To: combjelly who wrote (749104)	10/24/2013 12:28:27 PM
From: jlallen	6 Recommendations Recommended By Brumar89 FJB longnshort one_less Tenchusatsu and 1 more member Respond to of 1573921

unless the Republicans crash the world economy again. Other than the fact that the GOP never crashed the world economy...you might for once have had a point other than the one on top of your head....LOL!!

To: combjelly who wrote (749104)	10/24/2013 12:35:22 PM
From: Tenchusatsu	Read Replies (2) \| Respond to of 1573921

CJ, It is currently taking in more than it is spending No it isn't. SS crossed over into the red in 2010: nytimes.com An average two-earning worker who retired in 2010 paid $722K into SS over their lifetimes and will expect to get $966K in benefits: politifact.com I already don't expect to see everything that I put into SS when I retire at the age of 67, even if I live to 100. That's because I expect to see some sort of reduction in benefits during my lifetime. Not a Ponzi scheme you say? The numbers say otherwise. Tenchusatsu