What I have found in my own investigation, is that there are two forms of government debt...and you may know all this already...if so, forgive me if I
sound condescending or like a know-it-all...it might be helpful for readers, though, so I thought it would be good to share anyway...these are things
I was not aware of so I bet a lot of people don't know it, either.
Intragovernmental debt and public debt.
The first is what the government owes the trust funds and such after borrowing off the interest accumulated in those funds, by these securities in
question...I'm sort of assuming this last part. The money is invested somewhere, as you have pointed out, and the so-called entitlement programs earn
pretty fair interest yearly.
According to Wiki...which some people hold in derision as far as being a valid source...but which I find to be a good jumping off place and only go by
the information that is legitimately sourced, as this information I'm sharing does seem to be, from the citations given...
Anyway, the full details are here
and indicate that the interest earned by the SS
fund in 2011 was 4.4%.
It also says that intragovernmental debt accounted for $4.8 trillion of the $15.7 national debt as of April 2012.
Public debt, then, is the money borrowed from sources other than our own government, which would then come out to $10.9 trillion...that is
distributed, apparently, according to the data published by the Guardian I mentioned in my previous post.
Circular bookkeeping in some portion, but I think that it would not be a problem at all if spending were curbed and curbed drastically.
And contrary to what everyone is led to believe and what the pundits so blatantly declare as the source of the problem...it is NOT entitlement
programs...and they are not a source of higher income tax rates as they come from payroll deductions and matching employer contributions.
However...when the US borrows from itself by using the interest these funds earn for other purposes, it also requires itself to pay it back with
interest...or at least that is the intention. So...the interest that is accumulated on these loans as well as the interest adding up on the money
borrowed as public debt, from elsewhere than the government's trust funds/entitlement programs, then becomes a part of the steadily increasing
national debt because it is added into the increasingly escalating deficit in the yearly federal budget. And THAT is where our income tax dollars
So...the government borrows on the interest earned by our payroll deduction-funded trust funds...and then has to pay it back with interest...and the
expense of that interest is added to the burden placed on the collection of our yearly income taxes.
And since interest on a signature-type loan is always higher than interest earned on a savings account...or at least that is what I understand...then
we can only assume that the money borrowed on the 4.4% interest revenue from trusts is going to have to be paid back with an even higher rate of
Even if not...it is definitely not wise budgeting. And it pretty much sticks the shaft you-know-where.
So why are they borrowing from these trust fund interest surpluses if not for the so-called entitlement programs that they claim are gobbling up
edit on 8/17/2012 by queenannie38 because: (no reason given)