[quote=John Ogre][quote=SK in CV]Either way, the only investment option for SS trust funds is now, and has always been, to lend the money to the federal government.[/quote]There’s no disconnect and your claim is 100% false. Sorry for being stern on this but the misinformation from those on the right has been repeated over and over for decades.

There’s nothing stopping the SS fund from demanding only marketable treasuries that you and I can purchase, it’s just that the original rules of SS “custodianship” have been bastardized.

The 2 reasons the SS trust fund now exclusively holds special issue securities is because SS surpluses reduced the reported annual deficits (as seen in http://www.cbo.gov/budget/data/historical.pdf) and special issue securities pay a lower than market rate.

Most people don’t understand the difference between debt and deficits let alone the concept of intra-fund debt. It’s easier for people to just believe any bullshit their side tells them. Hell I’d lie to you too if I had something to gain.

I can loan you $10 but that doesn’t make you $10 richer. I’m sure Ron Paulites’ brains are smoldering right now.[/quote]

Ok, I’m not sure where you think I was wrong. I wasn’t. The SS trust fund must buy either marketable US debt, or special issue debt. Either way, they are lending money to the federal government. Go back to my original comment. I never claimed differently.

And if you’re arguing that I’m repeating right wing talking points, eh….whatever. Politically, i’m somewhere to the south and left of gandhi. But I don’t let other’s ideologies get in the way of facts.