Continued from: Thou Shalt Not Steal | Part II
What any bond investor should really be concerned about is the ability of the issuing entity, whether a corporation or government, to pay the stated rate of interest and repay the principal when it matures.
The government is in danger of not being able to pay its debts.
So, we have shaky investments in the Social Security Trust fund.
Now, just how many shaky investments do we have?
At the end of 2011, the Trust Fund contained (or alternatively, was owed) $2.7 trillion, up $69 billion from 2010. The fund is required by law to be invested in non-marketable securities issued and guaranteed by the "full faith and credit" of the federal government.
The trust fund represents a legal obligation to Social Security program recipients and is considered "intra-governmental" debt, a component of the "public" or "national" debt. As of April 2012, the intragovernmental debt was $4.8 trillion of the $15.7 trillion national debt.
So, the intragovernmental debt was $4.8 trillion. They spent $4.8 trillion that now they are in danger of not being able to pay.
Earmarks were a part of government spending. Part of the national debt was due to spending on earmarks by both Democrats and Republicans. Whenever bills were passed, earmarks were put into the bills. Now, the spending has come home to roost. They say we are at a fiscal cliff…we are out of money…stealing contributed to our dilemma.
Thou shalt not steal.
Encarta Dictionary definition of steal:
transitive and intransitive verb to take something that belongs to somebody else, illegally or without the owner's permission
transitive verb to take or get something secretly, surreptitiously, or through trickery
The government took taxpayers Social Security money…without the taxpayer’s permission…and spent it on earmarks, et cetera. The government took the fruits of my labor…and put the fruits of my labor in jeopardy. They do not represent me. They are tyrants.
The accounting practices of the government concealed what they were doing…and still are doing.
Durbin has made statements recently. Take your pick
Durbin’s remarks are not representative of the people…they are representative of a tyrant, who tells the people what the government is going to force them to do. Clint Eastwood has some advice for you Mr. Durbin. Video at the Republican Convention