#25 | POSTED BY JUSTAGIRL_IDAHO
#26 | POSTED BY GALAXIEPETE
Who forced you? Oh yes... the government. The one you voted for. YOUR politicians that you CHOSE are "forcing" you to pay for the older generation's retirement. If you had a problem with that, you should have voted them out, and put someone in who would not "force" you.
Again... because you were stupid enough to think that you had to pay for the last generation's retirement, you think that you are "entitled" to have me pay for yours.
Those piles of "IOU's" are US Treasury Bonds, the single most safe investment in the world.
Banks own tons of them as they provide a stable return along with security of principal.
What would you rather they invest the money in? Bitcoin? Gold?
#36 | POSTED BY NIXON
And what is a "Treasury Bond"? It is a loan you give to the US government. So, the US government is "loaning money" to itself and calling it a "trust fund". What happens when that "trust fund" needs to be tapped? Where does the money come from to pay for it? I will tell you. The government either has to issue more Treasury bonds (to the general public) or raise taxes to get the money. Because the money does not exist. Because it is just an IOU.
Think of it like the "trust fund" is a 401(k). But, instead of investing it in stocks or something, you invest in "yourself" by instead lending all the money that you put into your 401(k) back to yourself. So, when you retire, you have this account "worth" $200k, but you are also $200k in debt to your 401(k). So how big is your retirement account? In reality it is worthless because it is just an IOU to yourself. You will still have to work to pay back the "loans" that will allow you to withdraw money from your 401(k). Now doesn't that sound stupid? Because that is what the "trust fund" is.
And I don't want them to invest the money. It is stupid for the government to invest money (for a future monetary return). It never works. If you want to have a safety net (insurance), then make it one. Cut the benefits. Means test it so that you only get it if you absolutely need it. Because right now it is not "insurance", it is a pension. And government is terrible at administrating pensions. As shown by the boomers, if you give the government the option to put something off into the future (like paying for a pension, or paying off debt) they WILL do it.