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 : Bill Clinton Scandal - SANITY CHECK -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Schuh who wrote (29163)	1/22/1999 12:59:00 PM
From: Les H	Read Replies (1) \| Respond to of 67261

The issue I brought up was one of lying. The issue of the SS funds was that over time since the Federal Budget will have to borrow to pay them, thereby issuing the regular treasuries, essentially converting debt. The issue is not one of default. The problem is that the regular income taxes may have to be raised in the regular income tax to cover these transfer payments. Any way it turns out, it's intergenerational theft. The current recipients paid little into the system. The long steady decline in the US private savings rate coincides with the large increases in the entitlement programs from the late 60's onward. Much of the Fed's holdings are considerably shorter term in nature, some as short as one day.