Quote:
Originally Posted by REDCART
As I understand the issue. The US Gvt borrowed and repaid the funds it borrowed from the SS Trust funds. The scandal, for lack of a better name, was that the US Gvt borrowed these funds at less than the prevailing rate of interest. You think there was a slight conflict of interest? Would the difference in the interest rate have made a serious difference?
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Yes, the difference would make a difference. That loss of interest (let's say they paid $3 back in interest instead of the market rate of $5) would compound for years and years and years and would become very significant. Remember, SS is a long-term game, not an overnight loan.
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Chino 1960's to 1976, Torrance, CA 1976-1983, 87-91, 94-98 / Frederick Co., MD 1983-1987/ Valencia, CA 1991-1994/ Brea, CA 1998-2002/ Dana Point, CA 2002-2019/ Knoxville, TN 2019-Current/ FL 2022-Current
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