POLITICS - The Debt Game

[slimster]

Guys, while doing some research on a Forex forum I came across a very interesting and enlightening post that I would like to share with you, with credit to the OP known as "WellSpring" on that board and understanding that the post is a little over a year old so figures should be somewhat different: [And Growing More Every Day


Borrowed by the General Fund– $ 8,878,302,431,229* Income: Income taxes. Outgo: Defense 30%, Interest 19%, ..
Saved by the Social Security Trust+ $ 2,122,973,988,379 Income: FICA Payroll taxes. Outgo: Benefits and disability
Saved by other Gov. Trust Funds+ $ 3,569,591,716,104</B> Income: FICA & gas taxes. Outgo: Medicare, highways, etc.
Debt Held by the Public (net debt)– $ 5,308,710,715,125†


The debt game

When politicians (of both parties) talk about the debt, they don't like talking about $9 trillion, so they add up all the funds, as shown above, and talk about the "debt held by the public." They call this the "national debt," and they call its yearly increase the "deficit."

But this way of talking makes it sound like the money put into Social Security and into government and military pensions funds, all of which is borrowed by the General Fund, is not owed to the public. But it is. That money came from everyone's paychecks (FICA) and is owed to them in retirement. Every president has promised to keep that money safe. So, really, the whole $9 trillion is owed to the public.

In fact, over $2 trillion of what they call "held by the public" is actually held by foreign interests, while 100% of what is owed by Social Security is owed to Americans.]

This write up gave me a new perspective of exactly the condition our economy really is in. Gentlemen, what has happened to our once great country?......PS..I read in my local paper today that one week after the taxpayer funded $85 billion bailout of AIG, top company executives went on a $440,000 retreat to an exclusive California spa!!!

[Rimfire McNutjob]

Sign me up for a bailout and a manicure.

[TomD]

The 400K retreat sounds bad. It sounds bad when they were doing OK, and it sounds worse now, though it was probably all set up before the roof fell in on them.

The ongoing question is who is running AIG now that the government banks it and has some ownership potential there. The Government is now fronting them the money and got pretty favourable terms at the fire sale. The big picture continues to be the future of these government investments, and the future of the financial system we all depend on.

In the short run, the politicos are going to keep digging up dirt so that they can look like they are engaged in the issues the little guy cares about, like whether some highly paid Jackass is getitng a manicure. They will keep finding stuff to drive the rest of the world crazy. It's the congress, however, that shares the largest part of the responsibility for this mess, and through them the people who want everything on easy terms, right now, and on borrowed money. Once the rules were set up, wall street would persue whatever insane business model for as far as it could go.

[Ysabel Kid]

Even if they booked this long before the crash and bailout - even if it was nonrefundable - they should have donated everything to a charity. Better yet, switch out each and every one of them for returning vets from the war and their families!