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To: A.Hun
The trust fund is worthless. The only thing social security has to back it up is the government's ability to confiscate money in the form of taxes.

US bonds are the safest investment in the world. Of course they are based on US tax revenue. I don't see your point. The bonds are not worthless.

What post #30 said...but let me also offer an analogy.

Suppose you have $1,000 and you put it in a "lock box".
Then suppose you take $100 out and put an IOU to yourself for $100.

Question: How much money do you have?

That's exactly what these bonds are. The government has slipped a piece of paper (bonds) into an accounting ledger and spent the "real money". They have promised to redeem their own debt with their own IOU.

Question #2: How do you think they will do that?

38 posted on 01/17/2008 7:04:17 PM PST by evad (.)
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To: evad

Sorry, but that is just not a good analysis. The reason for the government borrowing from the trust fund is to give the trust fund interest income, not to just steal it. It was designed that way.

Without this mechanism, the trust fund would lose value every year. In a way you are right though. It really just amounts to bookkeeping

Check out the link at post 44.


47 posted on 01/17/2008 7:21:55 PM PST by A.Hun (Common sense is no longer common.)
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To: evad
Question #2: How do you think they will do that?

Just wait until the Federals make all distributions from private retirement accounts (IRAs, 401(k), and so forth) subject to tax. After all, it's for the common good, right? /sarc

53 posted on 01/17/2008 7:34:42 PM PST by rabscuttle385 (It takes courage to grow up and turn out to be who you really are.)
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