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Originally Posted by TheWolf
Listen just because the gov't is using one programs income to "purchase" treasury bonds from another programs debt and use those ultra low economy stimulating rates to generate some pittance of a return and stimulate someone elses business. Doesn't mean it's a ponzi scheme.
Just means that they're using creative accounting for the left hand to purchase debt from the right hand with the promise that the right hand will pay it back although the right hand has never paid a dollar back since 1950 but has made all his interest payments on time. The right hand also owes practically everybody including the muslims and chinese. Eventually one day though he's gonna spend more than he can cover and someone is going to cut him off which leaves only the left hand free to hold the bag.
IF you're under 30. There's a good chance SS will not be viable for you and medicare is going to turn into a VA style care center. You'll get the care you need. Eventually. When both parties could not come up with the essential money for the extension of unemployment benifits, it showed that neither side has any interest in solving any fiscal solvency issue.
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Old debt is rolled over with new debt as the new debt is used to cover the interest of the old debt when they mature.
You're right it's accounting slight of hand, which is what the purpose of this discussion is about. The government holds the private sector up to very strict standards when it comes to accounting. Yet this same stringent accounting scrutiny is NEVER applied to government. The Government never gets "regulated" their mistakes are rewarded with more power, more money, more resources.