RE: Fictional Government Accounting

[Michael Jones <powderfinger99@yahoo.com>]

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>>>>In fact, as Congressmen Archer and Hulshof point out, the "Trust
Fund" is an accounting fiction filled with IOU's from other areas
of the federal government.

There is no 'accounting fiction'. The accounting accurately portrays
the borrowing by the general fund of 'excess' SS receipts, and the
liability of the general fund to pay interest on that debt, and
eventually to redeem it. That is the reality.
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Politicians can make hay talking about how the tax dollars are
accounted for within the treasury. It doesn't make a difference
since all the money is spent. All the money that comes into Social
Security either goes out to beneficiaries or is spent through an
"investment" in treasury bonds. How each dollar is allocated among
all the government agencies is really for the politicians to fight
over.

The real issue is not how the money is accounted for, but where
the Social Security money should be invested. Either in the private
markets (which can create real wealth), or in government (which
doesn't create wealth).

Michael