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

To: combjelly who wrote (749131)	10/24/2013 12:57:50 PM
From: i-node	1 Recommendation Recommended By FJB Respond to of 1573952

By law it has to be invested in US debt. That's not the point. The point is they are running deficits. It doesn't matter where you put the money if there is nowhere near enough to pay the benefits.

To: combjelly who wrote (749131)	10/24/2013 1:13:56 PM
From: TideGlider	Read Replies (2) \| Respond to of 1573952

The money when received goes directly into the US Treasury from the people and employers. It is then paid to beneficiaries of the SS system. If there is an excess it is issued back to the SS system in the form of US Treasuries. The government loans it to itself. In the future, when it comes time to start drawing on the collected surplus, the government will pay itself back through tax revenue (or additional borrowing). The Social Security system will start cashing in the bonds, and the government will have to make good on them with tax revenue. That sounds weird because it is weird -- Whether or not it will work is a source of significant debate right now. The effect it will have is that it will shift the payment of Social Security benefits over to the government as a whole. The government as a whole, rather than the Social Security system, will have to repay the treasury bonds that the Social Security system will be cashing in. It will certainly be interesting to see what happens! Not so sue that hasn't occurred already.