Re: US government raids pensions

[Guest guest]

Technically speaking, raiding these funds add to the debt. The idea of the funds

in the firhst place was to keep money in them to pay out when needed, but also

to acrue interest in the interim. Not only is the government getting rid of

principle, but they are forfeiting interest as well.

They will have no recourse but to declare bankruptcy when all funds are

exhausted and debts remain unpaid.

Or they could raise taxes or pillage other countries of their wealth.

Administrator

The US Treasury is raiding government pension plans to keep spending and avoid

the debt ceiling. That money won't last very long, it hasn't in any of the

states that have done this. I wonder how much longer they will be able to resist

stealing private pensions. Other nations have done it and it has been discussed

here in the US.

http://news.yahoo.com/treasury-dips-pension-funds-avoid-debt-limit-202850021.htm\

l

[Guest guest]

Good points. Government will also make all of those people dependent on government programs which will have to be paid for by taxes since Social Security has in truth been paid for out of the general fund for decades rather than from its specific taxes. The result there would be taking money from the economy for a momentary benefit (it would be spent instantly on welfare and debt and be gone forever) meaning future outlays would be a drain on the economy rather than the boon they currently are.

But then the government is all about power. They want people bankrupt and on their knees begging for scraps. So much easier to control them that way.

In a message dated 2/11/2012 4:22:47 P.M. Eastern Standard Time, no_reply writes:

Technically speaking, raiding these funds add to the debt. The idea of the funds in the firhst place was to keep money in them to pay out when needed, but also to acrue interest in the interim. Not only is the government getting rid of principle, but they are forfeiting interest as well. They will have no recourse but to declare bankruptcy when all funds are exhausted and debts remain unpaid.Or they could raise taxes or pillage other countries of their wealth.Administrator