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The Problem With Privatizing Social Security...

Are you aware that the Trust Fund has done substantially better over the last 30 years than current t-bill plus inflation?

The trust fund has NOT kept up with inflation.

Show some numbers please.
 
The trust fund has NOT kept up with inflation.

Show some numbers please.

The numbers are your numbers 4 comments up.

You say that inflation is 2.41%. The effective rate of the Trust Fund is roughly 4%, that is down substantially from the 6% that it earned not long ago. Today we are maturing out bonds that pay over 6%. It has been a 30 year bull run in Treasuries.
 
The numbers are your numbers 4 comments up.

You say that inflation is 2.41%. The effective rate of the Trust Fund is roughly 4%, that is down substantially from the 6% that it earned not long ago. Today we are maturing out bonds that pay over 6%. It has been a 30 year bull run in Treasuries.

A 2013 dollar is worth only 79cents of 2003 dollar, a loss of 21% value in 10 years.


Social Security & Prior Cost-of-Living Adjustments
2003 increased by less than 5%
2004 increased less than 5%
2005 = 6%
2006 less than 6%
2007=3%
2008=3%
2009=6%
2010=0%
2011=0%
2012=6%
2013 less than 3/4 of 1%
So while benefits may have kept pace, the value of the trust fund declined.

In other words, the Feds borrowed our new car, put 300, 000 miles on it and returned it to us, and only paid us 4% annually of the value, or 40% of the cost, to use our car (money)
and call it FAIR?
If the trust fund is broke it is EXACTLY because of inflation due to deficit spending!

And actually, they are paying less than 2% interest but some how THEY figure that's an effective 4% interest? Cooking the books!
 
A 2013 dollar is worth only 79cents of 2003 dollar, a loss of 21% value in 10 years.


Social Security & Prior Cost-of-Living Adjustments
2003 increased by less than 5%
2004 increased less than 5%
2005 = 6%
2006 less than 6%
2007=3%
2008=3%
2009=6%
2010=0%
2011=0%
2012=6%
2013 less than 3/4 of 1%
So while benefits may have kept pace, the value of the trust fund declined.

In other words, the Feds borrowed our new car, put 300, 000 miles on it and returned it to us, and only paid us 4% annually of the value, or 40% of the cost, to use our car (money)
and call it FAIR?
If the trust fund is broke it is EXACTLY because of inflation due to deficit spending!

And actually, they are paying less than 2% interest but some how THEY figure that's an effective 4% interest? Cooking the books!

The effective rate of the Trust reflects bonds that were booked as long as 15 years ago. The latest round of debt was put on the books at 1 3/8%. That is only a small part of the Trust Fund's assets.

Can you explain what you mean by 2012=6%?
 
The effective rate of the Trust reflects bonds that were booked as long as 15 years ago. The latest round of debt was put on the books at 1 3/8%. That is only a small part of the Trust Fund's assets.

Can you explain what you mean by 2012=6%?

The maximum SS benefit was increased in 2012 from the 2011 max of $2366 per month to a new max of $2513.

A difference of $148 monthly. 148 divided by 2366 = .06255 or just slightly over 6% increase.

Social Security Press Office: 2012 Social Security Changes
 
The effective rate of the Trust reflects bonds that were booked as long as 15 years ago. The latest round of debt was put on the books at 1 3/8%. That is only a small part of the Trust Fund's assets.

Can you explain what you mean by 2012=6%?

And selling social security forced government bonds at 1 3/8 % interest with 5 years (or longer) of RECORD deficits that will culminate in record inflation, IS CRIMINAL!

It's PURE ROBBERY, and at a time they KNOW social security is in trouble!
Throw the bums OUT of office and INTO prison!
EVERY INCUMBENT!
And a WISE president would have vetoed such a travesty.
 
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And selling social security forced government bonds at 1 3/8 % interest with 5 years (or longer) of RECORD deficits that will culminate in record inflation, IS CRIMINAL!

It's PURE ROBBERY, and at a time they KNOW social security is in trouble!
Throw the bums OUT of office and INTO prison!
EVERY INCUMBENT!
And a WISE president would have vetoed such a travesty.

The interest rate formula was set in 1960, so it isn't something that the President can veto. It is possible that the President should not have brought Ben Bernanke back who formulated the ZIRP that is causing the 1 3/8% rates. The bonds are spread out equally over 15 years.
 
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