Friday, February 04, 2005

Frustrating mess

I don't know how people are supposed to make an educated decision when reporters can't even get facts straight in the Social Security debate. According to Media Matters, several reporters are claiming that private accounts will help solve the long-term debt. I'd like to know in what fucking universe taking money out of a system puts more in. When does 2-2 equal 4? When it does, then you will be right, jackasses. Because of the worst bias in journalism, laziness, we might end up with a screwed up retirement system that thrusts millions into poverty. It's frustrating dealing witht that kind of stupidity. Get your act together. If you're a journalist (and I use that term loosely with Dana Bash and Carl Cameron) then you can't say that private accounts will offer 10 times the current rate of return. That would be 30% blondy. If stocks offered 30% rate of return, don't you think we would all be doing really well right now? If the economy was productive enough to give us the 6.5% rate that the White House advertizes, then they're isn't even a shortfall in the current system and no need to "reform" anything. I'm really pissed at Brian Williams. He should know better than these other clowns on calble, but he stood ther while John McCain said that the "Trust Fund will be exhausted" in 2018. That's a total piece of crap. We don't even start redeeming the bonds inthe Trust Fund until 2018, so that would be a neat trick. Over the course of the last year, I've really lost a lot of respect for John McCain. When he runs in the 2008 primary I really hope he gets his ass kicked. If he makes it through to the general, I will make it my mission in life to make his political life a living hell.


At 7:00 PM, Blogger Bunker said...

Beware John McCain. I once respected him. After reading his last book I really started having doubts. In the last year or two I've finally pulled my head out and realized he loves only McCain, and everything revolves around his own ambitions.

You are exactly right about the Social Security cloud. There is no way to listen to a single point of view and draw any reasonable conclusions.

What I can say with some confidence right now is that the 3% thrown around is about equal to or slightly less than the current surplus receipts. The date of 2018 is when that surplus no longer exists at current rates, and those "IOUs" must be repaid from general revenue. Since the '60s, Congress has spent those excess dollars.

At 9:31 PM, Blogger Nate said...

Yeah, but those IOUs are government bonds. Most of us see privatization as a way to renege on paying those bonds. We're assuming that the Republicans want to default on those bonds, which would cause a serious mess. Other countries and individuals who have bonds would seriously be concerned that we would default on their bonds as well, which would cause a serious cash flow problem for us in times of debt. We're not saying the economy will collapse, but it isn't a good thing to not pay your debts when you are in deficit.


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