Tuesday, 1 October 2013

SSA Question for KTFW

Thanks. I am thinking specifically of the special issue securities used to replace actual money in the SS (ahem) lock box. Any idea? The treasury issues them, so would a gov agency underwrite them, would a bank underwriter, or would the trust itself, in this case SSA?
The SSA refers these questions to the Bureau of the Public Debt (part of Treasury), which refers to the FFB (Federal Financing Bank, est 1973(!)) and to the Monthly Statement of the Public Debt, and associated FAQs. Treasury also provides a monthly statement on federal trust funds, including the Federal Old Age Survivors Insurance Trust Fund and the same for the Federal Disability Insurance Trust Fund. These seem to indicate that the securities are issued directly by Treasury and that they form the total of fund assets (or close enough to it as makes no odds). i.e.
make up 2.660 trillion of a total assets of 2.667 trillion for the FOASI Trust Fund, and and 103.8 billion of a total assets of 104.5 billion for the FDI Trust Fund. These are occasionally referred to as special securities, but their special nature is (apparently) only in the conditions under which they are issued, and who is authorised to issue and purchase them, and not in their backing. Like other Treasury-issued securities they are backed by the "full faith and credit of the US government", whatever that is worth.

In turn, Treasury raises funds in the open market by the sale of notes, bonds, and etc ... as you know.

According to them, these - currently totalling 16.9 Trillion - are owned about 1/3 by the Fed (i.e. the banking cartel), about 1/3 by foreign governments/investors, and about 1/3 by "private investors", the vast majority of which are large domestic financial, insurance, and retirement fund businesses.

As far as I can see, like so many things that started in and around 1973, the whole thing works as a giant machine to redistribute wealth upwards, but under the guise of insuring your pension. The federal government is now owned by foreign governments and big businesses, by the largest international banks, and by domestic big businesses, about 1/3 each.
"The borrower is servant to the lender"
-Solomon, King over Israel, ~950BC
Hence, the current state of congress, the executive, and the courts ...

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