You are responding primarily from a philosophical viewpoint. I can respect that. The only thing I would like to see from you , that frankly would make me want to pay more attention to your point of view, is a correct use of facts. That graph you posted is utter nonsense. Here is where it comes from. Currently the government pays beneficiaries out of current revenues, this, but only this, is a feature of a Ponzi Scheme! But please understand that the Trust buying Special Treasury Bonds with current revenues, and then redeeming enough bonds to pay benefits is the exact equivalent, because the interest rate paid on the Trust bonds is adjustable and set by formula. The graph is nonsense! What it reflects is not a Ponzi scheme, but rather that the Trust will soon have to start paying benefits because current revenues will, at least while most of the the baby boomers are still living, be insufficient to pay all benefit obligations. As long as the Congress acts on the Trustees recommendation in a timely manner, a BIG if, everything will be fine in perpetuity (Where perpetuity is defined as "as far as anyone can foresee").
I like Bernie, but...
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I note that Piezoe is defending big govt again with truisms and specious arguments.
I note, that just about every ponzi scheme can be temporarily fixed for a level or two with more suckers and more fees. I have seen investment companies turn into ponzie schemes before the founder goes bankrupt or worse a few times in my life... with that exact approach. If I get enough "investor in now" I can pay back the top of the pyramid and maybe the market will bail me out. I bailed out of one of those about 4 years ago and it is blowing up right now. When the real estate market went up 20 percent and I only got a 2 percent return that he called a 10 percent return... I asked for the return of my capital. Those who stayed are now screwed.
Politicians in countries all over the world are trying hide the failure of the free stuff for votes policies by bringing in millions of non citizens.
This gives them 2 bites at the apple. If the integration fails they get social unrest and right to have an authoritarian crack down.
If they get lucky... they get one more layer of suckers at the bottom of the pyramid next generation.
I note, that just about every ponzi scheme can be temporarily fixed for a level or two with more suckers and more fees. I have seen investment companies turn into ponzie schemes before the founder goes bankrupt or worse a few times in my life... with that exact approach. If I get enough "investor in now" I can pay back the top of the pyramid and maybe the market will bail me out. I bailed out of one of those about 4 years ago and it is blowing up right now. When the real estate market went up 20 percent and I only got a 2 percent return that he called a 10 percent return... I asked for the return of my capital. Those who stayed are now screwed.
Politicians in countries all over the world are trying hide the failure of the free stuff for votes policies by bringing in millions of non citizens.
This gives them 2 bites at the apple. If the integration fails they get social unrest and right to have an authoritarian crack down.
If they get lucky... they get one more layer of suckers at the bottom of the pyramid next generation.
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This question has been formally addressed, more than once. On one occasion, Mr Greenspan was asked by a Senator if the bonds in the Trust were any good. He responded with the usual mumbo jumbo, not wanting to risk being judged as dumb as the Senator, and replied, " Senator, if you mean do they represent real claims on real assets, Yes they do."
The bonds in the Trust, like all other Treasury bonds, are backed by the full faith and credit of the United States. It is misleading and prejudicial, in my personal opinion, to call them "worthless I.O.U.s". Let's agree not to be chumps and do Wall Streets bidding. Let's call those special Treasury bonds what they are, "Special Treasury Bonds." They are "special" because they are structured specifically to give the Trustees greater redemption flexibility in meeting the Trust's obligations.
watching the dem debate. Bernie is very misguided about Wall Street. He talks about "workers" and how bad they have it. What he doesn't understand is on Wall Street, the "speculators" are the workers. Why tax the Wall Street "workers" when they do what they have to do which is trade? Why not tax main street "workers" when they do what they have to do to make a living?....Oh, yeah, that's right. He wants to tax everybody more.
The only "fair tax" is a very progressive income tax. All other taxes are picking and choosing who to punish at the whim of the ruling party.
The only "fair tax" is a very progressive income tax. All other taxes are picking and choosing who to punish at the whim of the ruling party.
Yeah, debt never matters until it does.