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Date:      Fri, 20 Jul 2001 09:01:45 -0400
From:      "Peter Pflaum" <wiredbrain@earthlink.net>
To:        <synergynet@eGroups.com>
Subject:   Panel Argues for Changing Social Security
Message-ID:  <001501c1111d$15b6a660$1e44bfa8@pflaump>

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The Bush commission's report said the key date was 2016. That is when =
payroll tax revenues flowing into Social Security from workers and =
employers will fall short of benefit payments for the first time. At =
that point, the system will begin relying in part on interest payments =
from its vast holdings of government bonds - the Social Security trust =
fund.

But the bonds and the interest on them are nothing more than commitments =
by the government to help pay future benefits out of general tax =
revenues, meaning that Social Security will begin to impinge on the rest =
of the budget.

 http://www.nytimes.com/2001/07/20/politics/20SOCI.html

Now if those "trust funds" were invested in other than IOU's from the =
Government to the Government they could earn more and be real. =
Individual accounts are much more complex - alternative investments =
could include foreign bonds which would help the balance of payments - =
Bank CD would add to domestic savings and lower interest rates , index =
funds are not the only investment alternative.=20

 http://www.wiredbrain.com/public-policy.htm suggests a Federal Assets =
Management Agency - like other pension funds. If the surplus now coming =
into the trust funds over the next 10 years were used to create a real =
reserve fund - several trillion dollars would be in the fund. It would =
remove the temptation to spend theses funds and have real earning =
(compound interest) added to them.=20



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<P>The Bush commission's report said the key date was 2016. That is when =
payroll=20
tax revenues flowing into Social Security from workers and employers =
will fall=20
short of benefit payments for the first time. At that point, the system =
will=20
begin relying in part on interest payments from its vast holdings of =
government=20
bonds =97 the Social Security trust fund.</P>
<P>But the bonds and the interest on them are nothing more than =
commitments by=20
the government to help pay future benefits out of general tax revenues, =
meaning=20
that Social Security will begin to impinge on the rest of the=20
budget.</P></FONT></STRONG></DIV>
<DIV>&nbsp;<A=20
href=3D"http://www.nytimes.com/2001/07/20/politics/20SOCI.html">http://ww=
w.nytimes.com/2001/07/20/politics/20SOCI.html</A></DIV>
<DIV><STRONG><FONT face=3DTahoma size=3D2></FONT></STRONG>&nbsp;</DIV>
<DIV><STRONG><FONT face=3DTahoma size=3D2>Now if those "trust funds" =
were invested=20
in other than IOU's from the Government to the Government they could =
earn more=20
and be real. Individual accounts&nbsp;are much more complex - =
alternative=20
investments could include foreign bonds which would help the balance of =
payments=20
- Bank CD would add to domestic savings and lower interest rates , index =
funds=20
are not the only investment alternative.&nbsp;</FONT></STRONG></DIV>
<DIV><STRONG><FONT face=3DTahoma size=3D2></FONT></STRONG>&nbsp;</DIV>
<DIV><STRONG><FONT face=3DTahoma size=3D2>&nbsp;<A=20
href=3D"http://www.wiredbrain.com/public-policy.htm">http://www.wiredbrai=
n.com/public-policy.htm</A>=20
suggests a Federal Assets Management Agency - like other pension funds. =
If the=20
surplus now coming into the trust funds over the next 10 years were used =
to=20
create a real reserve fund - several trillion dollars would be in the =
fund. It=20
would remove the temptation to spend theses funds and have real earning=20
(compound interest) added to them. </FONT></STRONG></DIV>
<DIV><STRONG><FONT face=3DTahoma size=3D2></FONT></STRONG>&nbsp;</DIV>
<DIV><STRONG><FONT face=3DTahoma =
size=3D2></FONT></STRONG>&nbsp;</DIV></BODY></HTML>

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