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In reply to the discussion: Ultra Low Interest Rates A Threat To Social Security [View all]FBaggins
(26,681 posts)33. Nope. They're tied to market rates
Congress could set a floor if it wanted... and otherwise let the rate float.
They could make a new law... but it wouldn't change the error in your OP. You continue to miss the fact that there are not trillions of dollars sitting in an investment portfolio earning interest. All of the money that came in for SS was spent and replaced with IOUs. Paying above-market rates on those IOUs isn't an actual rate of return on an asset... it's just the government agreeing to shift more debt from one account to another.
They could make a new law... but it wouldn't change the error in your OP. You continue to miss the fact that there are not trillions of dollars sitting in an investment portfolio earning interest. All of the money that came in for SS was spent and replaced with IOUs. Paying above-market rates on those IOUs isn't an actual rate of return on an asset... it's just the government agreeing to shift more debt from one account to another.
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From previous reports. Just because they're not online does not mean they do not exist.
jeff47
Mar 2016
#41
Well, yeah Congress can always amend the SS Act. But until they do that, it's pretty much a market
Hoyt
Mar 2016
#28
I think they have driven rates down in the hopes of spurring job creating business.
Hoyt
Mar 2016
#29
And it hasn't worked well because of other issues that only Congress, not the Fed, can address.
strategery blunder
Mar 2016
#47
Agreed. Allowing giant banks to borrow money for free from the taxpayers without no requirement
GoneFishin
Mar 2016
#51