The Federal Government is not allowed to invest the excess SS taxes, that were collected, in anything other than Treasury Bills. They are, as I understand, a special form of Treasury Bill. They collected more SS tax then need to pay benefits for a long period of time. Treasury put the SS taxes (including the excess) in the general fund, spent it (including paying SS benefits), and issued special Treasury Bills to SS (I call them IOUs) for the excess that was collected. That is how the Government operates.
Quote:
Originally Posted by Guest
Really?
So loaning private funds to a general fund account is backed by IOU's??
How many investments would the general public make based on being given an IOU? With a company that can only profess to be able to borrow money to pay back the investor?!?!?!
I do not know the answer, but where is it written that there is no place to go except Treasury bills?
|