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Trillions Of Paper And A $1,000 Wager

Sunday, July 14, 2013 - 6:16 PM
Social Security is sitting on a $2.8Tn portfolio of T Bills and Notes. Take a guess on how much of that was ‘turned over’ (redeemed/acquired/matured) in June of 2013?

Trillions of Paper and a $1,000 Wager - Bruce Krasting
ShorebreakShorebreak2,674 posts since
Apr 6, 2010
Rep Points: 14,510
1. Sunday, July 14, 2013 - 7:35 PM
"The system has functioned this way since it started collecting taxes in 1936. No one started ‘raiding’ the fund after the fact, It was designed this way from the beginning. Why? Because the Social Security system is a mechanism for taxation whose basic mechanics operate more like those of a Ponzi Scheme, than a retirement program. How many retirement programs take the investors’ money and convert it into a debt instrument upon which the investor pays interest? None, that I’ve ever heard of…but that is precisely how the Trust Fund works."

This comment caught my eyes; is that true? 

51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
2. Sunday, July 14, 2013 - 7:48 PM
Re: 51hh @ 1. Sunday, July 14, 2013 - 7:35 PM

I like this quote from the article:

"The pollution of interest income for savers like SS is well understood by Bernanke and his cohorts at the Fed. But they never talk about this ‘cost’ to the country’s future. They just harp on all of the benefits that low interest rates deliver, like renewed housing bubbles in places like Vegas and ever higher stock prices. I estimate that the cost to just SS of the Fed’s actions will add up to over $300Bn before the Fed folds its cards and ends QE and ZIRP. $300Bn ain’t chump change. I wish it was not just me singing in the wind over the true cost of what the Fed is doing."

As far as the "comment" you cite 51hh, I'd say it's an exaggeration of what's in place, IMHO of course.
ShorebreakShorebreak2,674 posts since
Apr 6, 2010
Rep Points: 14,510