And other gems from those who wish to steal your retirement funds. First, Mr. Frum:
Nobody is denying that the bonds and notes in the Social Security Trust Fund are valid. Of course they are. But when Democrats make this point, they are turning what is really an economic question into a legal one. Yes, yes, yes, the bonds are a binding obligation of the United States government. But the Dems want us to believe that they are also a valuable resource for the United States government – and that is hooey.
I guess Mr. Frum did not read Krauthammer’s oped. But as he admits that the bonds in the Trust Fund are valuable, Mr. Frum says hooey to the notion that the promises made by the Reagan Soc. Sec. commission in 1983 have any legitimacy. I guess this is about as honest as it gets – David Frum’s cronies have the legal right to rob the lock box. Any objections? Hooey!
Next, an odd exchange between Martin Sabo and Derrick Max from the Club for Rich People:
U.S. Rep. Martin Sabo (D-MN) announced this week that he will introduce a bill in Congress that he says will “guarantee Social Security solvency through 2080” by increasing the interest rate on Treasury bonds in the Social Security trust fund. Of course, Rep. Sabo appears to not understand that the Trust Fund is just an accounting device, and that the bonds are merely a reflection of what one hand of government owes the other. Paying ourselves more interest by fiat is just proof positive that the trust fund is meaningless. If Rep. Sabo really believes in this bill – why doesn’t he just double or triple the interest rate and increase benefits for retired seniors?
Does Mr. Max think that interest rates on government bonds are set like intercompany interest rates among related party entities that wish to violate the arm’s length standard. Congressman Sabo and Mr. Max should both realize that government bond yields are set in the market place. And the suggestion that there is some big pot where the allocation of wealth between the General Fund v. the Trust Fund as it the pleasure of white collar criminals sort of validates Mr. Frum’s apparent desire to rob the lockbox.