Many AARP members must not approve the organization's handling of Social Security reform. Just look here and here.
Posted by Chris Schrimpf
Comments
I just can't get past the idea that apparently smart people can say the following with a straight face:
"SS is not bankrupt. It has adequate cash flow to pay 100% of the benefits until at least 2041 and if nothing is done (which isn’t going to happen) pay 75% beyond that date. There is no crisis or need to adopt bad solutions."
I've explained this 1000 times if i've explained it once. These "special treasury bonds" that are in the trust fund are nothing more than government IOU's.
The AARP people totally miss the point when they say they're a safer investment than gold because they're backed by the government and they earn interest. I don't disagree, but who do you think pays the interest on these things? Future generations, thats who.
When the government purchases one of these "special treasury bonds", it is in effect saying "In order to spend this money now, we will ask our workers in 40 years time to pay the original amount plus an amount of compounded interest."
Great. Hey, I've got an idea, why don't we just raise the rate of return on these treasury bonds? Instead of the 2% now, why not make them return 50% yearly? Everyone would be rich.
Wouldn't they?
Posted by Jeremy Tunnell on August 17th 11:45:38 PM
