That money isnt accessable, it is invested in equities. Who would buy the equities to free up the cash? Additionally, it’s only 3.6 Trillion, less than 2 years worth of deficits. This solution doesn’t work, no solution works excepts massive cuts, shrinking govt by 60% - 70%. It will cause massive pain in the short run, at least 3 million unemployed between civil servents and contractors. There will be massive social upheaveal, but if we do nothing the inevidable upheaveal will be far worse.
I understand what you’re saying, but out of desperation I think this government is capable of trying to find a way to get at this money . It’s already being talked about.
Of course, this would be horrific and I hope things never come to this.
Here is what could happen- that was mentioned money morning last year.
http://moneymorning.com/2010/01/27/retirement-plans/
Excerpt
By laying claim to our retirement assets in exchange for 30-year Treasury bonds, annuities or other payout streams, the government will try to persuade us that we’re not capable of managing our own money, that the stock market is too risky a place for most Americans, and that we need Big Brother to hold our hands and protect our futures.
What we need, the administration is going to tell us, is a defined benefit plan.
So expect a big snow job. But here’s the problem.
Defined benefit plans are great only as long as they are well funded. Unfortunately, most aren’t.
In fact, according to various studies, pension funds could already be underfunded by as much as $5.3 trillion. Add that to the $14 trillion we’ve already got on the table and we’re talking a staggering $19.3 trillion - and that’s with no escalators, no cost-of-living adjustments and no interest-rate increases. And that’s assuming we don’t need another round of stimulus.
Here’s what the government isn’t going to tell you. When pension funds transition from defined contribution plans to defined benefit plans, the only backing they have is the underlying assets themselves and the company or entity that’s responsible for the plans - which in this case would be the U.S. government.