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To: Zeev Hed who wrote (877)	1/14/1998 11:56:00 PM
From: Rmn	Respond to of 9980

Zeev, I think the problem is that once it is put into treasuries, it is promptly spent on some silly govt giveaway. It is not earning any interest. All it is creating is an entitlement mentality in the population and some more loyal voters. Ramsey

To: Zeev Hed who wrote (877)	1/15/1998 9:29:00 AM
From: DMaA	Read Replies (1) \| Respond to of 9980

Why must there be an excess? Calculate the needs every 5 years, adjust withholding accordingly, and collect only what is needed.

To: Zeev Hed who wrote (877)	1/15/1998 10:24:00 AM
From: Mark Nelson	Read Replies (1) \| Respond to of 9980

Zeev, Re: SSI excess put into treasuries. You asked David, (if)..."the excess SSI was not put into treasuries, where will that money be kept? Will it earn interest there? " The question is a tricky one for sure. The excess SSI which is put into treasuries represents an outflow from the reserve system as it is spent as part of the budget. It seems erroneous to consider it an investment if the money is actually spent. After all, it's not like we're taking it out of one pocket and putting it into another one which somehow pays interest. The "interest" earned is just a burden on the same system and doesn't represent a net gain. The same seems true with payment upon maturity; the source of payment is from within the system (no net gain). It would seem reasonable to consider investing the excess SSI $ into instruments which attract $ from outside the system. There would be a net gain. I'll admit that this has me scratching my head. Mark