Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
SS is a pay as you go program that is funded exclusively by payroll contributions; it is separate from the general fund and always has been. In 2010 SS started to pay out more than it received, but they were able to avoid cutting benefits by cashing in "IOU's".
True. I would just like to add that the "special treasuries" that are considered "IOU's" do get transferred to the general fund when there is a surplus. The reason being is that when they are redeemed later on that whatever value was assessed to them at time of conversion will have been degraded by 2 - 3% yearly inflation. In other words $100 billion today would be something like $77 billion 10 years from now in "real" dollar terms.
The one thing to note though is that the more those special treasuries are redeemed the harder it is for the US government to finance other debt via treasury auctions. The money is already accounted for in those instances and it must go to OASDI. The only option the government has is to cut outlays somewhere else or increase the deficit so long as they have enough purchasers to buy that debt.
The same people that are giving us these warnings have been giving us these warnings for five years. They've been saying, 'if we engage in fiscal stimulus and loose monetary policy, the dollar will weaken, we'll have terrible inflation and interest rates will soar.' These people have been 100% wrong and yet conservatives still listen to them as if they are authority figures.
The U.S. has no trouble finding lenders to lend the government money -- at record low interest rates.
So misinformed it's funny. Bernanke is printing money to buy treasuries. Why? Because otherwise rates would skyrocket. Run your stupid lies somewhere else.
So misinformed it's funny. Bernanke is printing money to buy treasuries. Why? Because otherwise rates would skyrocket. Run your stupid lies somewhere else.
Yes, it is funny how you are misinformed but think others are.
Treasury notes go on sale every week. We do not have a situation where private buyers are refusing to buy them because the interest rate is too low. In fact, the demand for these notes drives down the interest rate and there has been no lack of demand.
Yes, it is funny how you are misinformed but think others are.
Treasury notes go on sale every week. We do not have a situation where private buyers are refusing to buy them because the interest rate is too low. In fact, the demand for these notes drives down the interest rate and there has been no lack of demand.
Hard to keep up the lying,eh?
Bernanke is buying treasuries so interest rates stay low. There's no other reason . The boy king needs his stash and thst's his only method to get it.
This isn't an opinion question. It is a fact. You Bots have trouble with those.
The same people that are giving us these warnings have been giving us these warnings for five years. They've been saying, 'if we engage in fiscal stimulus and loose monetary policy, the dollar will weaken, we'll have terrible inflation and interest rates will soar.' These people have been 100% wrong and yet conservatives still listen to them as if they are authority figures.
The U.S. has no trouble finding lenders to lend the government money -- at record low interest rates.
Bernanke is buying treasuries so interest rates stay low. There's no other reason . The boy king needs his stash and thst's his only method to get it.
This isn't an opinion question. It is a fact. You Bots have trouble with those.
QE's involve asset swaps, trading long for short term in this case to help push down interest rates. This is not de novo money creation, and yes it is effective in reducing rates. What it also does is remove potential interest income from the private sector, which is somewhat deflationary, but not so good for fixed income investors.
Not really. There has never been a conflict of interest between rates of inflation in economic downturns and the injection of money into the system by the Fed. The problems comes in with the amount of injecting and how the FR will remove that money when the money supply naturally expands via private borrowing.
The FR has about $3 - $4 trillion on its balance sheets now. The question is can the FR accurately predict when to start raising interest rates and pulling money out of the system. If they make all the right decisions at dumping assists the. Inflation will not be an issue. If they subcome to political pressures -- something you've already seen them doing -- then it's very likely they'll get it wrong and they won't be able to dump those assets fast enough. $3 - $4 trillion is a lot to dump and if the economy turns around quicker than expected it will be hard for them to balance their books.
Things get significantly more complicated if the dollar as the world's reserve currency goes under attack by countries like Russia, China, Japan, etc. something you've already seen those countries interested in.
Not really. There has never been a conflict of interest between rates of inflation in economic downturns and the injection of money into the system by the Fed. The problems comes in with the amount of injecting and how the FR will remove that money when the money supply naturally expands via private borrowing.
The FR has about $3 - $4 trillion on its balance sheets now. The question is can the FR accurately predict when to start raising interest rates and pulling money out of the system. If they make all the right decisions at dumping assists the. Inflation will not be an issue. If they subcome to political pressures -- something you've already seen them doing -- then it's very likely they'll get it wrong and they won't be able to dump those assets fast enough. $3 - $4 trillion is a lot to dump and if the economy turns around quicker than expected it will be hard for them to balance their books.
Things get significantly more complicated if the dollar as the world's reserve currency goes under attack by countries like Russia, China, Japan, etc. something you've already seen those countries interested in.
We do live in interesting economic times! I would anticipate modest inflation when we more emphatically come up from our recession, and can only hope the Fed remains successful in their endeavors to unwind. But I don't see your foreign currencies interfering or interacting in enough of a way to cause any troubles anytime soon. Maybe in a generation.
We cannot rack up 'debt' ad infinitum. But as long as we grow as a Nation our debt can and will grow. It has to as our debt is our money. Money creation and debt has to have good purpose otherwise onerous inflation might ensue. QE's are asset swaps, a central method for keeping interests rates low, and not money creation in any conventional sense.
The grow I think you are refering too is GDP and who would not be skeptical with our paltry numbers. Considering the gvt was spending a extra trillion along with 85 billion in QE and we get growth in the 2 to 2.5% range. Hmmm if there are cuts and QE slows ends wonder where it would be? With a economy that runs on 72% consumer spending, stagnant wages, low paying jobs leading jobs created I am not seeing a silver lining.
The grow I think you are refering too is GDP and who would not be skeptical with our paltry numbers. Considering the gvt was spending a extra trillion along with 85 billion in QE and we get growth in the 2 to 2.5% range. Hmmm if there are cuts and QE slows ends wonder where it would be? With a economy that runs on 72% consumer spending, stagnant wages, low paying jobs leading jobs created I am not seeing a silver lining.
Paltry numbers means we need to continue to push with continued central spending and supports. i.e. austerity is still dangerous this soon. QE may be a different story. We might not need such low interest rates to prosper, and QE actually removes on the order of $80B/yr of potential interest income from the private sector, about equal to losses from current austerity measures. The administration didn't seem to learn enough from FDR and 1937. Taxes should never have been raised so early in our recovery. Another roughly $80B hit, with the pertinent bulk coming directly from the Middle Class. The only Class so far left unbailed. A very large mistake IMO.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
