View Poll Results: How serious a problem is the divide between the wealthy and the rest of us?

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  • Not a problem at all.

    35 28.46%
  • A problem, but not a serious one.

    8 6.50%
  • A fairly serious problem.

    42 34.15%
  • It's not just a "problem." It's a catastrophe that is only getting worse.

    38 30.89%
  • This divide does not exist.

    0 0%
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Thread: The divide between the rich and the rest

  1. #391
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    Re: The divide between the rich and the rest

    Quote Originally Posted by MoSurveyor View Post
    You mean from Treasury, right? And when Treasury stops honoring it's obligations you let me know so I can stock up on guns and ammo.


    You of all people should know national spending and finance is completely different than personal spending and finance.


    It's going to be awhile before the Trust Fund runs out so I'm not worried.
    Here's one point to consider: When the SSA needs the promissory notes to be paid back, then you can start adding dramatically to the Federal Debt and in order to service that already huge debt (and assuming that interest rates will be much higher than today), then other services will need to be cut AND taxes will need to be raised dramatically.

    That's the reality of when one government entity borrows from another. Had the SSA loaned out that money to other entities, even foreign governments, then you would be much more accurate in your assessment.

  2. #392
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    Re: The divide between the rich and the rest

    Quote Originally Posted by cpwill View Post
    What Is FICA

    ...Under the Federal Insurance Contributions Act (FICA) 12.4% of earned income up to an annual limit must be paid into Social Security, and an additional 2.9% must be paid into Medicare....

    Medicaid is run out of the same dept. However, that's not really here or there, as "what FICA pays for" is not the determiner of our entitlements.



    Social Security to run $45 Bn deficit in 2011, CBO says

    CBO: Social Security to run Permanent Annual Deficits

    etc...


    People don't like to hear it. But fiscal reality is that SS is not going to make it in its' current form through the 2020s, for the simple enough reason that there will not be sufficient funds in the General Fund to cover the gap.
    Before posting stuff that seems to support your previously-held beliefs, you really should do a bit of reading on the subject in question
    http://www.cbo.gov/sites/default/fil...rojections.pdf
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  3. #393
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    Re: The divide between the rich and the rest

    Quote Originally Posted by MoSurveyor View Post
    You mean from Treasury, right?
    From Congress.

    And when Treasury stops honoring it's obligations you let me know so I can stock up on guns and ammo.
    These aren't bonds (which have value due to the fact that they are tradable), they are special promissory notes (which do not, because they are not).

    You of all people should know national spending and finance is completely different than personal spending and finance.
    On the contrary, the model holds here. We already spent our savings account. Now the bills that we were saving against have come due. Woops.

    It's going to be awhile before the Trust Fund runs out so I'm not worried.
    yeah? Where you gonna get the money to send to the Trust Fund? 'Cause the General Fund runs out of money in the 2020's, so you aren't getting it from there .

  4. #394
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    Re: The divide between the rich and the rest

    Quote Originally Posted by AliHajiSheik View Post
    Here's one point to consider: When the SSA needs the promissory notes to be paid back, then you can start adding dramatically to the Federal Debt and in order to service that already huge debt (and assuming that interest rates will be much higher than today), then other services will need to be cut AND taxes will need to be raised dramatically.

    That's the reality of when one government entity borrows from another. Had the SSA loaned out that money to other entities, even foreign governments, then you would be much more accurate in your assessment.
    Deficit spending is not the same issue as SSA and won't be for a couple of decades. What non-SSA spending we do IS part of deficit spending and should be addressed.


    Personally, I think there are some very good (and somewhat popular) ideas on the table that will address SSA long-term. The FICA cap change is one along with the COLA adjustment proposal. AARP hates the COLA change (as they should, since they're all about SS) but I'm good with it.
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  5. #395
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    Re: The divide between the rich and the rest

    Quote Originally Posted by MoSurveyor View Post
    Then I guess they're not any better than you at reading the 2011 Trustee's Report:

    https://www.socialsecurity.gov/oact/TRSUM/index.html
    No, I've seen this. And they are right. SS is just fine under current projections until 2037 (at last count). So long as the General Fund runs a $2.6 Trillion dollar surplus.


    Hey, the General Fund is going to have that extra $2.6 Trillion, isn't it? It's not, like, slated to run large deficits as far as the eye can see, or anything, right?


    Yes, what FICA pays for makes a big difference.
    No, it doesn't. Thanks to the fact that we chose to spend the friggin money, it is all now effectively General Fund.

    You and yours keep trying to shove SSA and welfare together and they're not the same. Medicaid is not the same, either, just in case you don't count that as welfare.
    Medicaid/Medicare are funded together. You don't have to like that, but you also don't get to pretend it isn't true.

    Actually, it is projected to make it through the 2020's, just not much beyond.
    Medicare Funding Runs Short by 2024 say Trustees

    The Congressional Budget Office has said that unless the current spending plans are stopped, the US economy will collapse by 2027

    Sorry, but no. We don't make it out of the 2020's without dramatic changes to our entitlement programs (to include SS). We can make those changes now and make them deliberately to protect our lower income seniors, or we can make them then and have little control over their effects.

    But, then again, SSA isn't supposed to be for profit and never was, it's supposed to be not-for-profit.
    Well it will definitely succeed then

    Financial developments since 1983, when they last changed the rules, have modified the outcome. But that doesn't mean I'm going to trust some Wall St. firm to handle all my retirement money.
    Agreed. You should run your retirement yourself. That being said, index funds will give you significantly higher returns than SS.


    We've all seen too well what sometimes happens behind the doors on Wall St.
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  6. #396
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    Re: The divide between the rich and the rest

    Quote Originally Posted by cpwill View Post
    From Congress.

    These aren't bonds (which have value due to the fact that they are tradable), they are special promissory notes (which do not, because they are not).
    I didn't say they were bonds, I said they were Treasury obligations, which they are.


    Quote Originally Posted by cpwill View Post
    On the contrary, the model holds here. We already spent our savings account. Now the bills that we were saving against have come due. Woops.
    Sorry, it doesn't compare.


    Quote Originally Posted by cpwill View Post
    yeah? Where you gonna get the money to send to the Trust Fund?
    If we can borrow a trillion or so for a war then I'm sure we can figure out some way to dig up another couple of trillion to pay our Treasury obligations, if needed.


    Quote Originally Posted by cpwill View Post
    'Cause the General Fund runs out of money in the 2020's, so you aren't getting it from there .
    No, the SSA Trust Fund will run out sometime in the mid-2030's without any changes and the CBO confirms that. Discounting your own cited authorities now?!? LOL!
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  7. #397
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    Re: The divide between the rich and the rest

    Quote Originally Posted by MoSurveyor View Post
    I didn't say they were bonds, I said they were Treasury obligations, which they are.
    They are special promissory notes without any real value.

    Sorry, it doesn't compare.
    On the contrary, that is precisely what has happened here. I realize that you do not like this, but that does not change the fact that there is no friggin money, we spent all the money.

    If we can borrow a trillion or so for a war then I'm sure we can figure out some way to dig up another couple of trillion to pay our Treasury obligations, if needed.
    Sorry, we're paying interest on the trillion for the war, plus we are paying for Medicare, SS Disability, and a whole host of other things . There is no ability to fund Social Security into the 2030's through the General Fund.

    No, the SSA Trust Fund will run out sometime in the mid-2030's without any changes and the CBO confirms that. Discounting your own cited authorities now?!? LOL!
    on the contrary. The SS Trustees state that so long as the General Fund magically has the money that it won't, that SS is good until the 2030's. The CBO says (cited above) that the General Fund isn't going to have the monies necessary to keep the Trust Fund Afloat.


    But Hey. That's okay. "You're Sure" that the General Fund will find some magical way to turn trillions of dollars in deficits into trillions of dollars in surpluses, because otherwise you may have to confront the unfortunate fact that SS is going to change.


    The one bitter silver lining in all this is the sick enjoyment I'm going to have watching the baby boomers self destruction. It couldn't happen to a better generation.

  8. #398
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    Re: The divide between the rich and the rest

    Quote Originally Posted by cpwill View Post
    No, I've seen this. And they are right. SS is just fine under current projections until 2037 (at last count). So long as the General Fund runs a $2.6 Trillion dollar surplus.

    Quote Originally Posted by cpwill View Post
    No, it doesn't. Thanks to the fact that we chose to spend the friggin money, it is all now effectively General Fund.
    Seen it from where? It's not from the SSA Trustee Report and I'm from Missouri, which is the Show Me State.


    Quote Originally Posted by cpwill View Post
    Medicaid/Medicare are funded together. You don't have to like that, but you also don't get to pretend it isn't true.

    Medicare Funding Runs Short by 2024 say Trustees
    No they're not. FICA pays Medicare and under-runs on Medicare come from the SSA.

    Like I said previously, take SSA out of the budget and any SSA deficit spending is solved for 20 years.

    What we do with what's left, mostly welfare and the military, is a different matter.


    Quote Originally Posted by cpwill View Post
    Sorry, but no. We don't make it out of the 2020's without dramatic changes to our entitlement programs (to include SS). We can make those changes now and make them deliberately to protect our lower income seniors, or we can make them then and have little control over their effects.
    Sorry, you'll have to separate welfare/Medcaid and the SSA. As long as you keep them together you will get bogged down.


    Quote Originally Posted by cpwill View Post
    Well it will definitely succeed then
    It can with a few minor changes which have already been proposed.


    Quote Originally Posted by cpwill View Post
    Agreed. You should run your retirement yourself. That being said, index funds will give you significantly higher returns than SS.

    : whereas Congress. now they are trustworthy! :
    Not everyone, and certainly the people who need it the most, know how to do that without risking their life savings. That should be plain enough from all the people that DO loose their life savings every year and are left with nothing but SS to rely on.


    Like I said, when Treasury has to stop honoring their debts you let me know so I can prepare for WWIII. Who bailed out the bankers?!? It wasn't other bankers!
    Mt. Rushmore: Three surveyors and some other guy.
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  9. #399
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    Re: The divide between the rich and the rest

    [QUOTE=MoSurveyor;1061759812]Seen it from where? It's not from the SSA Trustee Report and I'm from Missouri, which is the Show Me State.

    approximately 300 other debates on this topic where others have tried to pretend that a promissory note that you write to yourself is the same thing as cash?

    No they're not. FICA pays Medicare and under-runs on Medicare come from the SSA.
    Centers for Medicare and Medicaid Services: www.cms.gov. Yeah, they're run out of the same house, man. Medicaid is joint Federal/State funded, whereas Medicare is all Fed.

    Like I said previously, take SSA out of the budget and any SSA deficit spending is solved for 20 years.
    no, take SSA out of the budget and SSA doesn't have funds to cover its' payments next month.

    What we do with what's left, mostly welfare and the military, is a different matter.
    SS is welfare dude. As you yourself later put it:

    That should be plain enough from all the people that DO loose their life savings every year and are left with nothing but SS to rely on.
    That's why we have SS. That's why when we start reducing SS expenditures we are going to cut the payments to upper income earners (hopefully) before we cut them to lower income earners.

    Sorry, you'll have to separate welfare/Medcaid and the SSA. As long as you keep them together you will get bogged down.
    Since SS requires monies from the General Fund now, separating them from each other is not possible.

    It can with a few minor changes which have already been proposed.
    Well.... yes and no. It can be extended as measured only by itself with some changes, however, since Social Security is not what drags down Social Security (rather, the inability of the General Fund to make up the gap in Social Security is), it cannot so long as you assume that the rest of the U.S. Government continues to exist.

    Not everyone, and certainly the people who need it the most, know how to do that without risking their life savings.
    Yes, pretty much everyone. You're going to have to sell the "oh evil wall street will take all your money right before you retire" bit to someone who hasn't run the numbers

    Like I said, when Treasury has to stop honoring their debts you let me know so I can prepare for WWIII. Who bailed out the bankers?!? It wasn't other bankers!
    Since a pretty promise you write to yourself which is not tradable is not a debt obligation, perhaps you should start prepping. Not sure who you think is going to be fighting, but, good luck, I suppose.

    As for who bailed out the bankers? Broadly, savers. Through the devaluation of their holdings.

  10. #400
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    Re: The divide between the rich and the rest

    Quote Originally Posted by cpwill View Post
    approximately 300 other debates on this topic where others have tried to pretend that a promissory note that you write to yourself is the same thing as cash?
    Who said it was the same thing as cash? This is the second time you've intentionally misrepresented what I posted. It's a Treasury note and whether it has the same utility as cash or T-bills doesn't change the fact it's a promissory note issued by the Fed. Dollar and T-bills are also promissory noted issued by the Fed. When the Fed decides to stop honoring it's obligations you let me know.


    Quote Originally Posted by cpwill View Post
    Centers for Medicare and Medicaid Services: www.cms.gov. Yeah, they're run out of the same house, man. Medicaid is joint Federal/State funded, whereas Medicare is all Fed.
    I didn't say they were run out of different offices, I said SSA funded Medicare but not Medicaid. This is twice in this post alone that you've intentionally misinterpreted - at least three times so far in our short conversation. That's more than a little disingenuous of you.


    Quote Originally Posted by cpwill View Post
    no, take SSA out of the budget and SSA doesn't have funds to cover its' payments next month.
    So the Fed is going to stop honoring it's obligations?!? How interesting. I wonder if China knows this.


    Quote Originally Posted by cpwill View Post
    SS is welfare dude. As you yourself later put it:

    That's why we have SS. That's why when we start reducing SS expenditures we are going to cut the payments to upper income earners (hopefully) before we cut them to lower income earners.
    SS is government held savings, not a lot different than an annuity bought over 45+ years of working. It also has the benefit of including a disability policy.


    Quote Originally Posted by cpwill View Post
    Since SS requires monies from the General Fund now, separating them from each other is not possible.
    The Treasury notes and accounting are all there. It could be done of Congress wanted to do it.


    Quote Originally Posted by cpwill View Post
    Well.... yes and no. It can be extended as measured only by itself with some changes, however, since Social Security is not what drags down Social Security (rather, the inability of the General Fund to make up the gap in Social Security is), it cannot so long as you assume that the rest of the U.S. Government continues to exist.
    There is no gap in Social Security, there's a gap in other Fed spending that politicians have attempted to bandaid with SSA funds.


    Quote Originally Posted by cpwill View Post
    Yes, pretty much everyone. You're going to have to sell the "oh evil wall street will take all your money right before you retire" bit to someone who hasn't run the numbers
    I've seen the numbers and that thread.


    Quote Originally Posted by cpwill View Post
    Since a pretty promise you write to yourself which is not tradable is not a debt obligation, perhaps you should start prepping. Not sure who you think is going to be fighting, but, good luck, I suppose.
    If the Fed stops honoring it's financial obligations it'll be a full-blown, country-wide riot.
    Mt. Rushmore: Three surveyors and some other guy.
    Life goes on within you and without you. -Harrison
    Hear the echoes of the centuries, Power isn't all that money buys. -Peart
    After you learn quantum mechanics you're never really the same again. -Weinberg

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