explained so even a two year old can understand it:
I’ve seen that video on The Young Turks a number of times, but I didn’t know where to find it.
I like it because it illustrates what I’ve been claiming, namely that Barack Obama is actually to the right of Ronald Reagan on most issues. Calling Obama “center right” is absurd.
Bullshit. RayGun already had Alzheimers. He was just practicing his profession. Can’t you see it? Second, this is a fucking debate and RayGun is not making a thorough case, he’s flummoxing. Third, it goes into the “trust fund” and the general funds simultaneously. So Raygun is just full of shit here, as usual.
Don’t depend on some washed-up actor to make your case, comrade.
O’Bummer’s deceptions are just diffrent.
In the United States, the Social Security Trust Fund is a fund operated by the Social Security Administration into which are paid payroll tax contributions from workers and employers under the Social Security system and out of which benefit payments are made to retirees, survivors, and the disabled, and for general administrative expenses. The fund also earns interest. There technically are two component funds, the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds, referred to collectively as the OASDI funds.
When program revenues exceed payments (i.e., the program is in surplus) the extra funds are borrowed and used by the government for other purposes, but a legal obligation to program recipients is created to the extent this occurs. These surpluses add to the Trust Fund. At the end of 2011, the Trust Fund contained (or alternatively, was owed) $2.7 trillion, up $69 billion from 2010. The fund is required by law to be invested in non-marketable securities issued and guaranteed by the “full faith and credit” of the federal government.
The trust fund represents a legal obligation to Social Security program recipients and is considered “intra-governmental” debt, a component of the “public” or “national” debt. As of April 2012, the intragovernmental debt was $4.8 trillion of the $15.7 trillion national debt.
According to the Social Security Trustees, who oversee the program and report on its financial condition, program costs are expected to exceed non-interest income from 2011 onward. However, due to interest (earned at a 4.4% rate in 2011) the program will run an overall surplus that adds to the fund through the end of 2021. Under current law, the securities in the fund represent a legal obligation the government must honor when program revenues are no longer sufficient to fully fund benefit payments. However, when the trust fund is used to cover program deficits in a given year, the Trust Fund balance is reduced. By 2033, the fund is expected to be exhausted. Thereafter, payroll taxes are projected to only cover approximately 75% of program obligations.
There is controversy regarding whether the U.S. government will be able to borrow sufficient amounts to honor its obligations fully to recipients or whether program modifications are required. This is a challenge for the Federal government overall, not just the Social Security program.
you may not like it coming out of Reagan’s mouth, but what he says is true; any cut to payments will not reduce the deficit nor benefit the general fund, except insofar as trust fund is invested in Treasury bonds; conversely, any any annual social security deficit can only be funded out of the trust fund; social security is prohibited by law from paying out of anything else…
Is Raygun your dummy too (you’re putting words in his mouth)? Raygun says “that money would not go into the general fund to reduce the deficit“. That money did go into the general fund and, by Greedspan’s jimcrackery, resulted in increased deficits (because of tax reduction on the wealthy and increased spending).
So Grandpa Raygun pulled another fast one. SS ended up having a great deal to do with his deficit.
try again. this has nothing to do with reagan:
if benefits are cut, that does not reduce the deficit, but the excess payroll taxes will increase the trust fund holdings…
if the program pays out more in any given year than it takes in, that does not increase the deficit, it decreases amount in the trust fund…
the trust fund is invested in Treasury bonds, just like the Fed purchases, the chinese hold, & the banks hold as part of their tier 1 capital…
current investments held: http://www.ssa.gov/cgi-bin/investheld.cgi
if benefits are cut, excess payroll taxes will increase the trust fund holdings, and the deficit will INCREASE. Just like any other borrowing would. So schtupid RayGun’s stating the obvious and evading the crime of Greedspan’s shenanigans with SS. They used borrowing (from SS) to avoid raising taxes or selling bonds elsewhere.
So not only is the fuckhead wrong – SS does has an effect on the deficit and it was his regime that made it so – but the fuckhead is misdirecting concerns about what their manipulation of SS would do.
So what smart-ass point were you trying to make to two year olds? Seems RayGun fucked it up for you.
you’re warped; you cant see past your prejudice; no better than a flaming tea partier…
Nope, you’re using the fuckhead to talk down to sumbuddy (who?) And you can’t even correct my errors.
here is dean baker saying the same thing reagan said:
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