How to greatly reduce the growth of future debt

[ThomWV]

Did you know that roughly one third of the National Debt (about $14 Trillion) is the money owed to the Social Security Trust Fund (about $5 Trilllion)? The fastest and probably most politically acceptable way to greatly slow the growth of the debt is straight forward. Pass as law this week to put the Social Security Trust Fund off limits - make it a real trust fund, put it a real "lock box". I think it would be very difficult for any member to vote against that one in Congress.

[Recursion]

1. What do you mean by "off-limits"? All bonds are "off-limits".

The problem with the Trust Fund is that it's going to be more expensive to borrow the money to pay it off than it was when the Trust Fund was buying bonds.

[dkf]

2. As long as you are "investing" the fund in treasuries you are giving the cash to congress.

The only way to lock it up is to use it to buy investments like stocks or corporate bonds or hard assets like gold.

[eallen]

3. That wouldn't change the debt by a single cent

What do you think would be held in that Trust Fund? Perhaps the one security guaranteed by the full faith and credit of the US, federal bonds?

Those are the debt.

:hippie:

[WatsonT]

4. The people in charge of guarding that fund would be those with the most interest in looting it

like putting the wolves in charge of keeping the sheep safe from wolves.

[FreakinDJ]

5. Using Surpplus Social Security funds to buy Treasury Bonds

stabilizes the debt against Higher Interest rates and helps insure Employment

Reaganomics / Freedman's Trickle Down Theory uses Unemployment to curb inflation. The surplus Social Security Funds competing for Treasury Bonds help to keep interest rates low