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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (3649)	12/27/2016 9:45:33 PM
From: i-node	Read Replies (1) \| Respond to of 355121

It is a trust. Which means it has its own balance sheet that is not part of the "American" balance sheet. As Ross Perot might say, there is supposed to be a "lock box." Unfortunately, the Democrats who set up the trust also specified how the money was to be invested and it determined that the money would be invested in the debts of the United States. Period. Of course, we'll print whatever money is necessary to pay off the debts. No big deal. The real problem is that there have been no accruals for Past Service Costs. Which every pension is required to make. That is what guarantees the plan can come up with the money to pay. Not SS. Past Service Costs have to be come up with at the time the payment has to be made to the "employee". And it is huge. So, while we are printing money to repay the legitimate debts of the country, we'll need to print some to cover 70 years of Past Service Costs, plus earnings. That is a lot. In fact, as of now, it is around $9,000,000,000,000. Nobody's got that kind of dough. And that is the problem. Not the American balance sheet.