Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Drago

The surplus Social Security contributions were “invested” in U. S. Treasury Notes which is not a real wealth creating investment. The only thing that gives a government bond any value is the power of the government to collect money from future taxpayers to cover that bond.


77 posted on 10/19/2025 10:10:39 AM PDT by reaganator
[ Post Reply | Private Reply | To 75 | View Replies ]


To: reaganator; All

Yep, it is essentially a “Ponzi scheme”...I think we can all agree on that. My point in regard to your point is that it would be really dumb/fiscally criminal for the SS trustees to “sit” on (”cash under the mattress”) $2 Trillon in Social Security cash w/o earning a penny in interest. FDR/1937 politicians didn’t want the $$ in the stock market or foreign country bonds apparently, so here we are with the “special T-Bills” investment. T-bills issued by the Treasury for FedGov spending are bought by a lot of different people/entities but the buyer of last resort is the Federal Reserve with “printed”/keystroke “QE” money. The “special” SS T-Bills are purchased with “real” fiat payroll dollars from everyone’s paycheck/income.

No more “CR’s”, balance the annual budget then a surplus budget to start widdling down the $37 Trillion is debt, and then start making adjustments/changes to SS/Medicare so they break even annually. (Many ways to try and do that, including making SSDI/SS “if you didn’t pay in, we don’t pay out”...less of a Ponzi).


78 posted on 10/19/2025 2:41:17 PM PDT by Drago
[ Post Reply | Private Reply | To 77 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson