Posted on 10/25/2018 12:08:14 PM PDT by SeekAndFind
how much did slick willie take from the Soc Sec funds
There are many steps that will need to occur along the way before the United States goes bankrupt.
The real end point will not happen until the cost of servicing the debt exceeds the revenue collected. The United States has operated under the notion that the amount borrowed is not critical because there is no intention of paying it back, only to service the debt.
RE: Teachers and other public workers just need to be able to invest their own money in a 401k plan for retirement. Even with matching contributions, municipalities should pay much less for retirees. They need to do it very soon.
_______________
*THAT* was George W. Bush’s proposal in his second SOTU speech.
He proposed that eventually, workers would be permitted to invest up to a third of the 12.4 percent payroll tax that they and their employers pay on their wages. (Workers pay 6.2 percent and their employers pay the other 6.2 percent.)
Annual contributions would be capped at $1,000 in 2009 and thereafter rise slightly more than $100 per year.
The transition costs of diverting a third of payroll taxes to individual investment accounts have been estimated at around $2 trillion over the next 10 years. That assumes, though, that a third of payroll tax is diverted for each of the 10 years.
Bush said the diversion of tax to individual accounts wouldn’t be abrupt. Bush recommended “starting personal retirement accounts gradually and raising the yearly limits on contributions over time, eventually permitting all workers to set aside four percentage points of their payroll taxes in their accounts.”
That would lessen the immediate impact on the U.S. budget by somewhat reducing the transition costs.
The accounts would be modeled on the Thrift Savings Plan — a 401-k type program that is already available to government employees — and centrally administered by the government.
Workers would have a choice of five broadly diversified index funds and a lifecycle fund, in which the portfolio grows more conservative as the investor nears retirement.
Money in the accounts could not be taken out or borrowed before retirement. At retirement, it’s likely workers would have to annuitize a portion and only take out a lump sum if doing so would not result in the worker moving below the poverty line. Any unused portion of the account could be left to heirs.
Don’t be in debt.
works great, until the gubmint declares it owns your property, not you
---------
I would think the "end point" would come well before that...like around the time debt service (interest) exceeds 60%-65% of revenue or so...enough federal programs will have been squeezed out at that point to cause panic. Will have to check to see what % of the budget is purely salaries/wages for federal workers/military...when the paychecks stop coming the "stuff" hits the fan.
Don’t yell at me.. What’s PM? And thanks for your help.
Ping
I hear ya..
We as a nation can’t even begin to estimate our un-funded liabilities (as a whole). Estimates literally range from 100T to 150T. That simply cannot be paid for no matter how wealthy a nation we become or not. And when we go down the world comes with us. There are also outliers that can bring us down even if er are working in earnest to pay down our 21T in on the book debts. If stagflation hits this country, its over for the world.
POTUS is trying to even the playing field and I noticed that in 2016, we were giving away 50B in aide to 214 countries, in 2018 it is just 8B to date and I *think 142 countries. He’s working behind the scenes to be sure. But is it really too late; are the mediots and globalists just gonna blame it on POTUS?
The US is not going bankrupt. Its not close to going bankrupt. The reality is the US dollar is very strong. And the more we produce the stronger it seems to get. Our debt matters. But it does not matter like your own personal debt. Its more like Pete Rose. When Pete Rose runs out of money he puts himself up for sale somewhere. And he gets paid to produce signatures, often on merchandise. It works as long as people want Pete Rose signatures.
America is the same. As long as people, countries, businesses want dollars we can produce as many as we want, within some reason, and they will give us stuff or their currency or gold or bitcoin for our dollars. You can decide if we make too much by comparing the exchange rates on various currency around the world.
As long as the Euro has existed, its ranged between .88 and 1.45 to the dollar. Right now its about 1.14 dollars to 1 euro. So its generally in the middle. The Yen has gone from 85 to 120 Yen to a doll. Now its about 112. Canada’s dollar is worth about .76 cents right now. So as long as the dollar is comparable to other currency that you may wish to chose instead of the dollar, there is no fear of the US debt.
This is not to say that States or other countries can do the same thing. The US government is very large and has a relatively stable dollar. So people have learned to depend on it during troubled times. Also, its a safety in numbers thing. As long as everyone is in the same boat, they will not flee the currency that they depend on.
Also, as bad as the US is, we are better than Europe as a whole. And we are better than Japan. China demonstrates the problem with strong currencies relative to everyone else. China is forced to devalue its currency to keep its products cheap. If China were to allow its currency to rise, China would lose trade because its products would be too expensive. And Chinese factories would shut down.
By the way, this does not work with States or people. It does not even work with countries within the EU or small countries outside the EU. For example, during the last financial crises, Switzerland, which is not in the EU had a crises. Their currency did not suck. So it became very strong. So Switzerland could not sell anything to the rest of the world. What did they do? They printed money. Argentina is having the opposite issue. Their money is becoming weak, so they have to buy their own money back.
So you don’t have to worry about our debt. You have to worry about our exchange rate.
The Banksters - always.
States can go bankrupt but not the U.S.A. The U.S.A. would default and repudiate debts. That’s what will happen, if the Democrats get a congressional majority in the midterm elections.
Medicare is way to generous. My mom had a major operation and it came to 123,000 dollars. Between Medicare and secondary, she paid 125.00 total for operation and overnight stay. That is just crazy! Yes good for us but times this by 300 million and we are talking real money the government is paying.
Me like much!
3 trillion
thanx
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.