Shopsmith Forums

heathicus wrote:I work for the state government and don't pay in to Social Security. I pay into a state run "defined benefit" retirement plan instead. I'm not sure which end of the stick I'm getting...

Is that plan a state "public Employee Retirement Assoc" we are under one of those in Colorado and find it one of most safe retirement and health insurance options I have ever seen. Jim

Well, the state has tried the last several years to make changes due to the budget problems. Raise the retirement age, and lower benefits. Just like with Social Security, I fear one day they will be successful because there will be no other choice.

fjimp wrote:Those in attendance informed her this gathering already had a subject selected. All of which makes me wonder why the American people refuse to gather facts and determine what the facts really are demand and cost containment at the original source, that providing services and the wide array of products being consumed. As I understand it we are the only nation not doing so. Jim

I am not sure what point you are making, what are we not doing? As long as the person receiving the service does not pay for it the system will never work. This country went down the employer provided insurance path to get around another bad government idea of wage and price controls. Once the person receiving treatment was separated from paying for it, cost became secondary and they started to grow faster than other stuff. The good news is it created a demand for expensive treatments which led to accelerated research and people living much longer within a single generation. So a good unintended consequence, but it also led to people becoming dependent on government paying for expensive treatments near the ends of peoples life, which is bankrupting Medicare. Every government solution cause other issues, now we have young people working to pay for the healthcare of older people they don't know at an every increasing rate.

If you want a better explanation of what is wrong with the current system read Atlas Shrugged or watch the new movie.

The Treasury Department does pay interest on the Treasury Bills held by Social Security. In 2011, the Social Security Administration received $106.5 billion in interest payments on the approximate $2.5 trillion is so-called assets it holds. Details are here in the last available trustee's report -- http://www.ssa.gov/oact/TRSUM/index.html

pennview wrote:The Treasury Department does pay interest on the Treasury Bills held by Social Security. In 2011, the Social Security Administration received $106.5 billion in interest payments on the approximate $2.5 trillion is so-called assets it holds. Details are here in the last available trustee's report -- http://www.ssa.gov/oact/TRSUM/index.html

So the Treasury Dept borrows money to pay interest on money it borrowed from Social Security? Doesn't seem very sustainable, does it ??:rolleyes:

I noticed on the front page of the annual mailing they send out, they mention right off the bat that in like 2030 the amounts shown will propbaly only payout at 75%. (I think those were the correct numbers). At least they are warning us right .

You guys save some for me!

Bob, yes, that's how it works. And then there is the Federal Reserve's Quantative Easing program where they just print new money, buy treasury bills with it, and then draw interest.

Not to worry though, the Democrats will ensure that our kids and grandkids will have to pay the piper.

The Republicans are just as guilty.

major_bob wrote:So the Treasury Dept borrows money to pay interest on money it borrowed from Social Security? Doesn't seem very sustainable, does it ??:rolleyes:

What do you think the national debt is. It is this exactly, it is funds owed by the federal government to others. It is Savings Bonds, Treasury bonds, Treasury bills along with accumulation interest.

And yes we are borrowing to pay our interest.

Now figure this one out the US government prints money, it then gives the money to the privately owned Federal Reserve who then sells it at discounts to financial institutions who place it into the our every day money stream as full value. Everyone makes money except you and me.

It cost us money to print, it costs us money to distribute to the Fed, any profit the fed makes buy selling this free money is theirs, the banks get the money at a reduced rate but pay you at face value so they make money and then have nerve enough to charge you interest on it.
We lose and they all win.

The Republicans haven't run the country for four years and we're about $6 trillion deeper in debt since then. And Obama tells Boehner that he's tired of hearing Boehner say that Washington has a spending problem. I think that pretty well explains who's doing the spending and where the reluctance to cutting is coming from.