A REAL LOCKBOX FOR SOCIAL SECURITY

Cato Insitute ^ | This article appeared on cato.org on July 1, 2005. | Michael Tanner

[Pontiac]

the first ten years of the act they treated it like an insurance company would; they put it in a reserve-type of fund. The economists of the day blamed the removal of that large sum of money from the economy (not to be spent by consumers) as one of the reasons the recovery from the depression took so long.

Well I believe that the first pay out happened in 1937, two years after implementation.

Considering how much money Roosevelt was pouring down the New Deal Rat Hole I don’t see how you would ever notice any money being sequestered in to a SS trust fund. The same could be said of Obama’s Raw Deal economy.

The real removal of money from the economy came from the confiscation of the people’s personal gold reserves and the following devaluation of the currency.

[Hostage]

No, the IOUs are in the form of treasury bonds, so they are added to the national debt.

But every year there is a huge interest on the national debt that must be paid from tax revenues, and alot of our tax money is going to China.

So if you pay any income or social security taxes, a portion is going to pay interest to Chinese buyers of US treasury bonds. You don’t want to know the portion, it would make you sick.

Think of income taxes and their utility. Income taxes are not used:

For Schools
For Roads
For Social Security
For Medicare
For Postal Service

and many many other activities that people confuse as being paid for by their income tax dollar. The above type things are paid for by their own separate taxes or fees.

So what are income taxes used for?

1/2 of Military
Government Waste
and....interest on the National Debt.

The other half of military spending is funded by borrowing and adding to the national debt.

It’s acary to think about these things. The USA is going bankrupt and that’s why rational people are predicting a revolution, especially a tax revolution.

http://www.fairtax.org

[Marty62]

Thank You Sir.

Very understandable, and concise.
Makes me sick. But well stated.