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homestead - Re: [Homestead] Gambling with retirement monies

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  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Gambling with retirement monies
  • Date: Sat, 5 Feb 2005 14:34:31 EST

tvoivozd AT infionline.net writes:


> ---but it will not
> selectively cancel existing bonds which all other bondholders would
> interpret as forerunner of default on their bonds..
>

Of course it won't. Saying so is simply the antithesis of notion that that
because SS benefits are backed by the taxing power of the US government, the
benefits will go on unabated no matter what right until the US goes bankrupt.

Both scenarios are equally unlikely. But recognizing that the Congress HAS
the
power to ignore the IOU's if it likes, how much more then does it have the
power to severely modify those IOU's without appearing on the surface to
compromise them?

For example, what if someone had retired in, say, 1955. Would they
necessarily have expected on SS to maintian a car, have air conditioning in
their
house, been able to afford twelve prescription drugs, expected to have
convenience
food available for them, cable television (wide screen)? The reason they
would not is that those things weren't givens back then. Some didn't even
exist.
No one expected them. Fact is, if all seniors lived as seniors lived back
in 1955 (say), the SS payment they receive now would look like a lot of
money.
What people consider the necessities is going up all the time. What I expect
to see is SS continuing pretty much it is now, but it will buy less and less
of what is considered a minimal standard of living. Then the government
could
say, "Hey, we've kept our promise! Just because what we promised isn't worth
anything anymore isn't something we promised, is it?"

7th




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