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


To: neolib who wrote (69488)5/2/2018 4:54:53 PM
From: combjelly  Respond to of 354524
 
Now you've done it...



To: neolib who wrote (69488)5/2/2018 4:55:57 PM
From: TimF  Read Replies (1) | Respond to of 354524
 
I have $5 in my right pocket. I need to purchase $5 of food today. I use the $5 from my right pocket. Tomorrow, by some means (same as above) I pay my right pocket back $6.

Now tell me again why the $1 extra in my right pocket is not real interest,


I the same way a picture of a Micky Mouse isn't real interest. There is no connection to real interest (or getting back to my point "real return"). Your buying something with money on hand, and then replacing it with your own money later. Moving around your own money doesn't give you a real rate of return (you might move it in to an investment that gives a real return, but the investment is giving the return not moving it around).

If you borrowed it from someone else (not moving it around from pocket to pocket or account to account) and paid them interest, then they would get a return, and you would pay a cost (in order to benefit from having money now rather then later). But that's not what happens with the SS trust fund. The government is just moving money around (in the context of the system as a whole borrowing money from others).