I guess I know longer get a "Cheers", huh.
Originally Posted by Rudyard K
Not on this topic, no.
Talk about misleading...I said "expanded"...you start arguing "started". Mybe you need to go pick up one of your grade school primers and start trying to learn how to read and comprehend again.
Or could it be that you are just trying to mislead. Oh my God, NO. What a deciever that would make you. That just can't be true.
OK, fine. I've always respected your normally reasonable arguments but on this topic you're obviously so dense that even x-rays can't get through you so I'll just have to lead you by the nose.
Here's the law:
Social Security Act of 1935, Title II, Section 201(b).
"It shall be the duty of the Secretary of the Treasury to invest such portion of the amounts credited to the Account as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States"
Think hard about what this says in relation to your argument about Johnson.
According to the US Code the SSA
MUST invest 100% of the trust fund and it
MUST invest that money only in US Treasuries.
What does that mean?
It means that every fiscal quarter the bean counters down at the SSA do some simple math. They take the amount of money that came in via taxes and interest and they subtract the amount they need to pay out in benefits and administrations expenses. What's left over
MUST go into the trust fund. They then put that money for the trust fund - ALL of that money - in a great big bag and take it down the street to Treasury building and buy as many US government bonds as they can with it.
100% of the trust fund money, by law, goes to buy government bonds. It always has.
100% went to buy bonds in 1940. 100% went to buy bonds under Johnson. 100% went to buy bonds under Reagan. 100% went to buy bonds under every single fucking president we've had since the first dime rolled into the SSA in 1938.
What does that mean for your argument that Johnson "expanded" (or "started" or "encouraged" or whatever other verb you want to use) the use of the trust fund to buy government debt?
It means you're full of shit.
100% of the trust fund money was going into government bonds no matter what Johnson or anybody else wanted to do with it. Johnson couldn't have "expanded the borrowing from the trust fund". The trust fund was already going to put all of its money back into government securities anyway. Johnson had absolutely no control over that. It was done automatically by law.
Do you see why your argument is such a ridiculous impossibility?
If Johnson had tripled the federal budget how much of the trust fund money would SSA have put into government bonds? Answer: 100%
If Johnson had halved the federal budget how much of the trust fund money would SSA have put into government bonds? Answer: 100%
If Goldwater had been elected in 1964 how much of the trust fund money would SSA have put into government bonds? Answer: 100%
If Jo Jo the Talking Dog had been elected in 1964 how much of the trust fund money would SSA have put into government bonds? Answer: 100%
Get the point?
There was nothing that Johnson did or even could have done that in any way affected the amount of money the US government "borrowed" from the SSA trust funds either before, during, or after his presidency. The amount of government bonds purchased by SSA is determined solely on the basis of how much surplus there is in the SSA accounts at the end of each quarter not on how big the federal budget is for that period. No President, Johnson or otherwise, has any control over the trust fund investment.
Everything you believe on this subject is
wrong. It's a lie. It's a sham. It's a magnificently effective fabrication created by a brilliant political manipulator to dupe you into thinking that something evil happened in 1968 that was all the fault of the Democratic Party. You've been suckered on this to such a huge extent that you'd rather believe the sun rises in the west before giving up on this idea.
But hey, I'm ready to be proven wrong.
Prove to me that Johnson somehow managed to "borrow" more than 100% of the trust fund.
Show me the actual law that changed the way the trust funds worked under Johnson.
Explain to me how SSA can give the Treasury more than 100% of the surplus every quarter without anybody ever noticing that the books don't quite balance.
You do that and I'll be happy to accept your argument. In the mean time I stand by my position that you're full of shit on this. You're just parroting something you heard in Forbes or the WSJ or on the Glen Beck show because you're too lazy to even bother to think about whether it could even be true let alone whether it
is true.
You show me why I'm wrong other than "I read it on the internet somewhere" and I'll be happy to continue the debate. In the mean time all I can say about me being the one who's "misleading" is
.
Mazo.