% | $
Quotes you view appear here for quick access.

Caterpillar Inc. Message Board

  • richoncat richoncat Dec 10, 2012 9:41 AM Flag

    Social Security Surplus

    Man I hate this new format. I can't reply directly to any of your posts. Let's start a new thread.

    Not only can't they pay it all out at one time they can't even pay this year's total benefits. It's even worse than a Ponzi scheme where they're using your kid's payments to pay your benefits. They're borrowing from the Chinese to pay this year's shortfall. Technically, it's funded for 20+ years. Practically, they've taken all the cash, issued bonds in return and there are not enough payroll taxes collected to pay the benefits going forward so they borrow additional money to pay the redeemed bonds. As long as you assume the government can borrow at 0% interest rates for ever, I guess we're OK. But I believe rates will one day return to average 5% rates and we're in real trouble.

    Sentiment: Hold

    SortNewest  |  Oldest  |  Most Replied Expand all replies
79.38-0.63(-0.79%)Jul 22 4:00 PMEDT