I’m aware that the “surplus” was used to justify tax cuts in 2001, but if the Trust Fund bonds weren’t ever booked as future liabilities on the normal ledgers, that’s a serious additional point, and might mean that surplus wasn’t even real …

There was an article last week on Naked Capitalism. It seems to imply that the Treasury bonds that were sold to the Trust Fund were never entered onto the books of the Treasury Department as future liabilities that had to be paid back eventually. IF that’s true, I suspect it makes the Trust Fund bonds different from all other Treasury bonds in that respect, but I’m not an expert. Nevertheless, if it’s true, it’s “creative accounting” to say the least, and may be why they’re so afraid of ever tapping the Trust Fund. It could make them appear to have been involved in accounting fraud. Maybe someone else here can clarify this …

Buy U. S. treasuries, the safest investment on the planet.

Unless you’re the Social Security Trust Fund. Then they become mere “IOU’s” according to our esteemed politicians …

It was a matter of Galileo trusting his esthetics more than Kepler’s hard won insights from calculations and (Tycho’s) observations, which pointed to elliptical orbits. That’s the same sort of trap the Church fell into with Galileo, ironically. In both cases, dogma was elevated over empirical work. Of course, Galileo suffered more damage because his opposition in the Church had real power, whereas all Galileo could do to Kepler is to refuse to help him gain acceptance. That’s still a blow however. Just ask any student who’s been slammed by an established scientist …

I went to an academic seminar around 1980 where a priest and history professor at a Catholic school tried to falsify history by claiming that Galileo’s theories were not very different from the Church’s teaching, after all.

Galileo opposed Kepler’s (correct) Laws of Planetary Motion because he felt circular orbits were more pleasing than Kepler’s ellipses. That’s not that different from Ptolemaic logic about circular motion, nor was his treatment of Kepler so different from the Church’s treatment of him in spirit. Of course, Galileo didn’t have any power to drag Kepler to trial, but he didn’t do him any favors on that issue just the same. Even noted scientists are fallible in such ways, unfortunately …

Politicians think they can pull a fast one on the American people by claiming a cut is really just a “technical fix.” Since some politicians are scared of publicly supporting cuts to Social Security but also want to cut the program, they have lined up behind this terribly designed gimmick.

For once, the AARP is actually doing something useful by sending out constant email blasts to their members telling them in no uncertain terms that this “gimmick” is a real cut to benefits for current retirees. They’re also providing quick letters of protest for their members to send to Congress about this. So Congress doesn’t have a prayer of sneaking this past seniors without them knowing what’s happening. This may have even made a difference in the “fiscal cliff” debate at the beginning of the year by scaring enough Democrats to keep this cut off the table then …

Most private funds would “invest” incoming premiums all those years, and try to keep them growing beyond the sum of the input amounts. I doubt if this is how they get these figures, but certainly variable annuities assume they’ll have more than just premium sums when one matures, and they have to pay out. Other than something like that, I can’t answer your question. I have heard that today’s new Social Security recipients can expect on average to withdraw less than they paid in, which surprises me …

I also agree with you on point 4 …

lasting longer is what HE wants, not what WE expect.

Well, his replacement votes Republican virtually 100% of the time, as opposed to maybe 50% of the time for Marshall. And that seems to be what the voters in that district want, Republican votes. In other words, it’s a Republican district where voters didn’t want what, “we expect” …

I lived in Marshall’s district for a little while. He either took a lot of Republican stands, or he lost his seat in what was a largely Republican state, which happened eventually anyway. Not a profile in courage maybe, but he lasted longer than he would have otherwise …

The appeal of a Newtonian universe has been encouraged by the powers that ‘head’ religious organizations as it buttresses their position./blockquote>

Is Newton now considered anti-Darwin? This has really become a ridiculous, zero sum game if the sciences are considered to be at each other’s throat like that …

Dr. Krugman, just a practical question that applies to retired folks like me. If we were to adopt a policy of deliberately higher inflation, say 4%, what can folks with nest eggs do to protect them from that inflation when bond rates are near zero, and stocks are so risky because of things like the Euro crisis??

Incidentally, I no longer own an RV, so that expense is gone, although for me it saved money because I parked it and lived in it full time …

* And unlike annuities offered by the private sector, Social Security benefits are indexed (sort of) for inflation.

Speaking of annuities offered by the private sector, I see that Met Life recently asked its variable annuity holders for permission to get rid of the old MD trust that was responsible for them, and to set up a new trust in DE. I’m always wary when a private corporation makes such a request. I have to wonder if they’re anticipating problems, and trying to set up a shell that they can declare bankrupt more easily, to avoid the obligations. I have no proof of such in this case, but I’m naturally suspicious when it comes to this sort of thing. If anyone has any further info, let us know if this is something we should keep an eye on …

Well, those look smooth and creamy, like they avoided both the watery and the lumpy consistency problems. But they don’t have much color, which means they don’t have a whole lot of butter or cheese mixed in. They may be a bit bland as a result. Good cheese grits are actually yellow orange, and are available routinely (in local cafeterias from time to time) as far west as Santa Fe, NM …

Krugman wants 4 to 5 percent inflation, while holding interest rates near zero by flooding the banks with almost free money from the Fed. The banks will use that money to speculate on oil and other items to help achieve the inflation. The common people, and especially the senior citizens, will get screwed. They can’t afford the risks of stocks. They can’t get any interest on bonds. They’ll have to spend down savings. And the inflation will erode those savings funds. And all that speculation won’t help the economy that much.

If the Fed were making those cheap funds available to common people and not banks, I might see some merit. But not this sorry scam …

I see “progressive” John Garamendi on that list. So much for supporting him for reelection …

That 20% happens to be the number of Americans who actually thought they were in the top 1% in a poll about 7 years ago …