PanGus
7/28/2011 12:03:00 AM
"Jerry Okamura" <okamuraj005@hawaii.rr.com> wrote in message
news:NtDXp.16959$kI4.109@newsfe02.iad...
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> "PanGus" wrote in message
> news:ob6dnRwUK7dLP7PTnZ2dnUVZ_rednZ2d@posted.toastnet...
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>
> "Jerry Okamura" <okamuraj005@hawaii.rr.com> wrote in message
> news:bypXp.17$iK1.15@newsfe05.iad...
>>
>>
>> "PanGus" wrote in message
>> news:GsGdnYcQMbW-h7PTnZ2dnUVZ_h6dnZ2d@posted.toastnet...
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>>
>> It is simple really. I don't like everything Obama said (particularly
>> his
>> priorities if the debt limit isn't raised: Social Security, Medicare, etc
>> are liabilities secured by law while debt is unsecured and any bankruptcy
>> attorney will tell you unsecured debt gets paid last.) but Obama was at
>> least honest.
>>
>> Boehner, on the other hand came out with deceits, half truths,
>> ideological
>> right wing slogans. But oh, he has such a tan! Does the tan make the
>> man?
>>
>> Who should we listen to? It is as clear as good and evil.
>>
>> How can Social Security and Medicare keep the promises it made? How does
>> it close the huge amount of unfunded liabilities of the two programs?
>> How can we solve the problem with the increasing National Debt? Is ANY
>> promises either the President makes, or the House Majority Leader, or the
>> Senate Majority Leader make, worth ANYTHING, when they are making
>> promises for future President's and future Congresses?
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> As I already said, Social Security, Medicare, Medicaid, and many social
> programs are 'secured' commitments: those made by statute, law.
> Government
> debt is 'unsecured', there is no law backing it, much if not most of it is
> held by non-citizens outside the country. Any debt counselor or
> bankruptcy
> attorney will tell you unsecured debt doesn't get paid. Obligations which
> are secured by law are paid first, right behind food, housing, medical
> care,
> transportation.
>
> What is the unfunded liability of these programs? How can there be an
> unfunded liability, "if" these are "secured" commitments? How good are
> these "secured commitments"? Didn't the last round of Social Security
> reforms break these so-called "secured commitments"? How can these
> programs survive, with the huge amount of unfunded liabilities?
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>
>
Seems simple enough: Those 'trust funds' have been bailing out the rest of
the budget for over 50 years, time for the rest of the budget to bail them.
If we don't pay the debt (beyond say, a quarter million like FDIC to protect
the small money guys and gals) there is plenty of money to pay for the
defense and welfare of our own citizens under current tax rates, even if the
wealthy (top 10% of wealthiest now have 56% of wealth in US) should be
paying more.
"Secured" generally refers to some ownership interest in tangible assets.
Being a citizen does bring some tangible assets like public school, use of
infrastructure and public land, representation in the government. I don't
think buying government bonds carries any of those. Besides, social
security, medicare, etc are invested by decades old US law. Buying bonds is
just lending money on faith.