A perfect example of why the deficit is so high

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Uwaa OmO
The VA (none other) spent $0.65 to tell someone that they were over drawn by $0.50

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This is not a joke.
 
Well, I suppose they could just forgive the last 50 cents someone owes. But that would mean that 50 cents would effectively be 0 cents. So people would start hedging 50 cents more from that, and you'd have to either let them off or look stupid trying to collect it. And eventually, your collecting nothing, the departments broke, and the world ends.

You have to think, billy.
 
Fluttershy said:
Well, I suppose they could just forgive the last 50 cents someone owes. But that would mean that 50 cents would effectively be 0 cents. So people would start hedging 50 cents more from that, and you'd have to either let them off or look stupid trying to collect it. And eventually, your collecting nothing, the departments broke, and the world ends.

You have to think, billy.
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Or, they can send an email or phone call. Ya know, something that costs less than the debt incurred. I mean, if you spend more collecting debt than the actual debt then you still collect nothing.
 
couple of decades ago I closed a credit card and the company was dunning me because I owed them 12 cents...finally I got ticked off and sent them a check......for 15 cents.......they sent me a 3 cent check back.....true story.......
 
Rune said:
How so? The trust fund reserves will last another 20 years.
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The trust fund reserve is basically a legal fiction. Surpluses are paid into a "trust fund", sure, but congress can take those surpluses and spend them with the promise to pay them back. The trust fund does mean that, starting from the time when the surpluses end (expected to be 2021), to the time when the fund is exhausted (expected to be 2033), congress is going to have to keep SS payments at their current CPI adjusted levels using some source of funds (likely debt). After 2033, it is entitled to lower SS payouts to whatever can be provided given merely the current revenue from the SS tax.

Basically, there is no trust fund reserve. When congress takes from the trust fund, it is essentially incurring debt (unless it plans to raise new taxes to make up the expected shortfall, which is unlikely). And, I suppose, it could always just renig on the trust fund.
 
Fluttershy said:
The trust fund reserve is basically a legal fiction. Surpluses are paid into a "trust fund", sure, but congress can take those surpluses and spend them with the promise to pay them back. The trust fund does mean that, starting from the time when the surpluses end (expected to be 2021), to the time when the fund is exhausted (expected to be 2033), congress is going to have to keep SS payments at their current CPI adjusted levels using some source of funds (likely debt). After 2033, it is entitled to lower SS payouts to whatever can be provided given merely the current revenue from the SS tax.

Basically, there is no trust fund reserve. When congress takes from the trust fund, it is essentially incurring debt (unless it plans to raise new taxes to make up the expected shortfall, which is unlikely). And, I suppose, it could always just renig on the trust fund.
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Correct the supposed trust fund is filled with nothing but IOUs. Even though Socialist inSecurity was a scam the day FDR the crippled douchebag enacted it, he at least made it its own fund where the money paid into it could only go to Socialist inSecurity payments. That lasted all of 30 years when Lyndon Baines Johnson (democrat) moved the payroll payments into the general fund. You see he had to be able to fund his Guns and Butter program to as he said "get those niggers to vote democratic for 200 years".

Anyone thinking there is a fund is stupid beyond belief. The other little known fact is that Socialist inSecurity recipients arent entitled to jack shit regardless of what they have "paid into the system". The Supreme Court has ruled on multiple occasions that the federal gobblement is under no obligation to pay out those funds.

This all presents an interesting situation that is going to develop as the money runs dry and fewer and fewer workers are left to support more and more freeloaders.

My guess is that some day in the not too distant future you will see the demalquedacrats make a grab for the people's 401Ks. Think it can't happen? Think it is a wild conspiracy theory? Well, Senator Harkin has already held hearings on it.

They will sell it to a gullible libtardiot constituency on the basis that the tax break on those investment vehicles is unfair and the gobblement can no longer subsidize it. They will also convince them that the stock market is inherently unfair and that these poor souls should not become victims to the vagaries of the stock market.

On a separate note, did you know that when the cripple FDR was selling socialist insecurity, he promised a return of no less than 3% a year? It hasn't come close to that.
 
When FDR created SS, the life expectancy was only 60. Hardly anyone was supposed to collect social security, which would presumably leave a large surplus stashed around for a rainy day. Now, the life expectancy has risen to around 80 (I think it's 77 for men and 82 for women).
 
Fluttershy said:
The trust fund reserve is basically a legal fiction. Surpluses are paid into a "trust fund", sure, but congress can take those surpluses and spend them with the promise to pay them back. The trust fund does mean that, starting from the time when the surpluses end (expected to be 2021), to the time when the fund is exhausted (expected to be 2033), congress is going to have to keep SS payments at their current CPI adjusted levels using some source of funds (likely debt). After 2033, it is entitled to lower SS payouts to whatever can be provided given merely the current revenue from the SS tax.

Basically, there is no trust fund reserve. When congress takes from the trust fund, it is essentially incurring debt (unless it plans to raise new taxes to make up the expected shortfall, which is unlikely). And, I suppose, it could always just renig on the trust fund.
Click to expand...

Here is a new word for you, it is hypothecation.
 
I Love America said:
Correct the supposed trust fund is filled with nothing but IOUs. Even though Socialist inSecurity was a scam the day FDR the crippled douchebag enacted it, he at least made it its own fund where the money paid into it could only go to Socialist inSecurity payments. That lasted all of 30 years when Lyndon Baines Johnson (democrat) moved the payroll payments into the general fund. You see he had to be able to fund his Guns and Butter program to as he said "get those niggers to vote democratic for 200 years".
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Before the trust fund was created, there essentially was no guarantee of what would happen during a shortfall. For a great deal of time afterward as well, there was no automatic adjustment for CPI. The trust fund was created because of controversy over using surpluses as just another source of revenue (essentially just making SS taxes - the amount that's being paid out an incredibly regressive form of income tax. People thought that they should be some further guarantee. However, it's really just created confusion, some people thinking that congress is just storing up money (which would be literally the dumbest thing you could imaginably do with the surplus), and other people, such as yourself, self-righteously bloviating about your supposed right to have that money just stored away doing nothing but incurring inflation.
 
I mean, if you don't retire between 2021 and 2033, the trust fund is really not concern of yours at all. It would've made no difference to the amount you'd receive anyway. You're not being robbed, you were never owed anything under any sense anyway.
 
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