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wonderpup

Interesting Take On Us Debt.

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Makes the excellent point that US Social Security is not bankrupt since it's funds are held in protected trust funds- the reality being that the trusts money was instead diverted to military spending and bailing out the rich.

I am shocked :lol:

I like this graphic for several reasons, but especially because it puts everything in proportion with regard to the US' current obligations.

One thing I would like to highlight is the large surplus funds in the Social Security Trust and others. These were 'invested' in a special type of intra-governmental Treasury note.

These funds are not 'gone' anymore than a Treasury bond is 'gone.' It is a sovereign debt holding. If the US defaults on its debt, then it defaults. But let's call it what it is.

The Trust Funds are not the money that the government 'owes to itself.' It is a Trust fund, that is, money held by the government in Trust for others. The Trustees invested it in a special category of Treasury bonds that do not trade on the open market.

So to somehow suggest that Social Security is bankrupt now because the government spent the funds on general obligations is to assert a violation of Trust, a fraud, and a selective default on the sovereign US debt.

And do not think that the world would view it any other way, despite the spin put on it by faux economists, useful idiots, and mainstream propagandists for the money men.

Where would you think they would put a Trust Fund of this size? In a passbook savings deposit account? Federal Reserve Notes? The stock market? It was given to the government to be invested in bonds that were judged to be the least risky form of storing that wealth.

No, the real problem is that the US has malinvested too much of its revenue in too many fruitless and unfunded projects like wars, overseas military bases, and other subsides to oil companies, banks, and multinational corporations. The partnership between the money men, their corporations, and the government has allowed corruption to grow and prosper.

The money men and their cronies directed the peace dividend into their own pockets. And now that hard times have come, they wish to not only keep their gains but multiply them, and visit hardships on the very people whom they have defrauded. Their greed and hypocrisy knows no bounds.

"Adversity makes men; prosperity makes monsters."

Victor Hugo

The US trade deficit and the stagnant real wage are major unaddressed problems, and has been so for the past twenty years. And those are the result of the distortions of fiat money regimes.

Reform and domestic growth is the answer to the US and UK problems, and not further looting and economic pillage of the laboring classes to provide largesse to the money men and paper manipulators.

See the graphic here;

http://jessescrossroadscafe.blogspot.com/

So having looted the trust funds the call now goes out to 'cut entitlements' on the basis they are broke- carefully avoiding the issue of who spent the money and what the money was spent on.

America really is a shithole of a country- defrauding it's own elderly to line the pockets of the banksters. :angry:

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Makes the excellent point that US Social Security is not bankrupt since it's funds are held in protected trust funds

The film I.O.U.S.A. (2007) makes the point that surpluses in social security are used to "pay off other bills in the Federal government".

"In less than 10 years social security will be paying out more than it takes in and it will only get worse as Baby Boomers retire in larger and larger numbers".

The graph being shown at this point in the film (about 17.5 minutes in, 17:25 on YouTube) is the sort of thing to give the most bearish HPCer nightmares.

http://www.youtube.com/watch?v=Mkg2bzSXfJs

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No, the real problem is that the US has malinvested too much of its revenue in too many fruitless and unfunded projects like wars, overseas military bases, and other subsides to oil companies, banks, and multinational corporations. The partnership between the money men, their corporations, and the government has allowed corruption to grow and prosper.

The money men and their cronies directed the peace dividend into their own pockets. And now that hard times have come, they wish to not only keep their gains but multiply them, and visit hardships on the very people whom they have defrauded. Their greed and hypocrisy knows no bounds.

"Adversity makes men; prosperity makes monsters."

Very well put.

[...] top 50 publicly traded companies globally, excluding financials, ranked by their latest reported quarter's total cash and short-term investment holdings [...] the sum total for these companies' cash balances is approximately $1.08 trillion

http://www.standardandpoors.com/products-services/articles/en/us/?assetID=1245282374054

And the above sum doesn't even include financial companies (not to mention hedge funds or other private investment vehicles of the ultra-rich)...

See also:

U.S. Firms Build Up Record Cash Piles

http://online.wsj.com/article/SB10001424052748704312104575298652567988246.html

The Federal Reserve reported Thursday that nonfinancial companies had socked away $1.84 trillion in cash and other liquid assets as of the end of March, up 26% from a year earlier and the largest-ever increase in records going back to 1952
Edited by awake_eagle

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  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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