> I was already too confused to come up with questions, and then
> this.(above)
> Could you expain, please. Also, maybe I missed it, what about those
> contradictory statements about running out of SS money by 2013 and being
> flush for 50 years. Did that ever get explained?
As things stand, the Trust Fund doesn't 'run out of money' in 2013. It begins to incur cash expenses in excess of its cash receipts. Remember, the Fund has bonds which return interest receipts, on paper. Between cash receipts and interest receipts, the Fund has more 'income' than expenses until 2030-something. At that point, the Fund is still not 'broke' in terms of income. Its balance would be exhausted by then. So it has more expenses than income and needs money from somewhere to meet its expenses.
Clinton proposes to increase the Fund's balances so they last until 2050 or so. But these balances, in the form of more bonds, can't be used to directly pay Soc Sec beneficiaries. They have to be sold back to the Federal government, in return for cash. The Federal gov has to get the cash by taxing, borrowing, or cutting other spending. The rationale for the debt pay-down is that with less interest expenditure, tax increases, borrowing, and other spending cuts will not be necessary, or that borrowing will be easier.
>
> Sorry if I've missed something. Think I do have a whole in my mailbox.
> Need to download a new Eudora.
I downloaded Eudora once and was never the same.
xxx
mbs