http://www.zerohedge.com/news/2013-10-29/congress-eliminate-debt-not-counting-it-anymore
This administration really is transparent, after all. I called this yesterday, and a few times before:
For example, Medicare and Social Security hold their massive trust funds in US Treasuries. This is the money that’s owed to retirees.
In fact, nearly $5 trillion of the $17 trillion debt (almost 30%) is owed to intragovernmental agencies like Social Security and Medicare.
So now they basically want to stop counting this debt. Poof. Overnight, they’ll make $5 trillion disappear from the debt.
On paper, this looks great. But in reality, they’re setting the stage to default on Social Security beneficiaries without causing a single ripple in the financial system.
Remember, when governments get this deep in debt, someone is going to get screwed.
They may default on their obligations to their creditors, causing a crisis across the entire financial system. Or perhaps to the central bank, causing a currency crisis.
But most likely, and first, they will default on their obligations to their citizens. Whatever promises they made, including Social Security, will be abandoned.
And if you read between the lines, this new bill says it all.
They say "retirees." I wonder if that affects the disability and SSI (welfare) portions.
Comments
One day you wake up and there is no more money and nobody saw it coming because they stopped counting. How clever, party till the cows come home.
Now that's creative accounting!
How can this continue - surely it's going to all collapse!