By Tom Kiser
So…..What would happen if all of the balances that are currently being carried in all of the federal government’s so-called “trust” funds were written down to balances of zero?
Two things would happen:
Treasury debt would be reduced by something more than five trillion dollars.
And, The professional scam artists in Washington would have about 230 fewer “tools”–or hidey-holes–with which to perpetrate their scams on the overly trusting citizens of this once great nation.
One thing that wouldn’t happen:
Nothing of value would be written off and no functional financial change would occur. Not a damned thing would be different about how the finances and money flow of our federal government functions. For every dollar that federal departments and agencies spent the Treasury would have to have a dollar of revenue coming in from somewhere. That is just as true today when the trillions of dollars are being carried as “trust” fund balances as it would be true if the balances were written down to zero.
Regardless of what Congress may do and regardless of what members of Congress may think, The Treasury must have money coming in to be able to pay out money: The Treasury must operate on a pay-as-you-go basis. The Treasury functions as a switching manifold. There is no “tank” anywhere in the federal government that can be used to store money for use at some later date.
Tom Kiser