Tuesday, August 17, 2010


Krugman in Bizarro land | Questions and Observations: "There may “legally” be a “trust fund”, but there’s nothing in it but government IOUs. The federal government has borrowed every dollar that was ever in the “surpluses”, put them in the general fund and spent them. Now this isn’t even arguable. This has been known for literally decades.

But Krugman insists that all the money that’s been taken from us for Social Security (FICA) is in a tidy heap in the “trust fund” which has run surpluses for decades.

Lord, anyone with the IQ of a penguin knows that there isn’t a dime of real revenue sitting in that account – it is stuffed to the gills with treasury bonds. To this point that hasn’t been a problem – because it has always taken in more than it paid out."