Give me a break. I can have ideas about how to save social security too. This is going to be a short Blog.
We know all about the social security trust fund and lock boxes and that sort of thing. Well, I think that I have finally gotten to the bottom of the problem and thus the solution. What we need to do is to transfer the trust fund to a third party separate from the government. We can debate who that might be, but I think we could come up with several qualified candidates. Now rather than transfer the IOU's that now represent the, so call, trust fund, we should do it in Gold. Based on a simple accounting concept of FIFO, first in first out, we should calculate how much and when US dollars were deposited in the trust fund and take out an equivalent amount of Gold from Ft Knox based on the price of Gold at the "time" of the deposits.
This is the only way that I can see that the funds could be deposited someplace else without either having the government borrow the money or the treasure print more money. If the government had to borrow enough money to transfer the funds our whole financial system would fail. If we printed enough money to make the transfer, it would ruin the value of our money and thus we would have a complete financial failure. I just heard some nut who claimed to have worked for Greenspan who thinks there is real money in the trust fund. It is just a file cabinet with some sheets of paper showing when and for how much the government promised to payback when they took the money and spent it. Just think if you could do that?
There is something about Gold that I feel would allow all those who are now older than 55 or 60 to have confidence that they would have social security when they retired.
If anyone has a better idea, I would like to hear it.
