From: upp@ssd.comm.mot.com (Steve Upp)
Subject: Re: Social Security is a Tax?
Organization: Motorola LMPS
Distribution: usa
Date: Thu, 15 Oct 1992 15:53:09 GMT
Keywords: n

< ** soap box mode on ** >

When Social Security collapses, and believe me it will collapse along
with the rest of the economy, we have no one to blame but ourselves.
We have allowed the people who represent us in both Congress and the
White House to play economic games with our future for a long time.

The last time the government actually had a balanced budget was during
Nixon's term (which is due primarily to Johnson's tax increase prior
to his leaving office).  Before Nixon the government was deficit
spending too, but not nearly as badly as it is today.  Twenty years
have gone by and we continue to expect government to spend more than
we're willing to give it.  We'll get what we deserve.

IT IS ULTIMATELY OUR RESPONSIBILITY TO OVERSEE THE JOB DONE BY OUR
REPRESENTATIVES IN WASHINGTON AND WE HAVE FAILED MISERABLY.

Just look at how the electorate responds to campaigns.  Bush promises
no new taxes in 1988 and wins the election even though the deficit was
1+ trillion dollars then.  Every politician knows that the 'T' word
had better be used very carefully (or their job is at risk).  Forget
talking about Social Security....its political suicide.

We can curse our politicians all day long, but they won't change their
ways until we change ours.  We must communicate our concerns to Washington
and let them know that we will support them only if they make the tough
choices that must be made to turn the economy away from the brink.

*****

Since I'm posting this to misc.invest I guess I should bring up
something that relates directly to investments.  I have come to the
conclusion that government bonds are no longer a good investment.  The
primary reasons (tax issues aside) for purchasing government bonds is
their safety.  However, if you look at projections for the US
governments revenue and expenditures through the end of the decade it
is clear that there will come a point in time where there won't be
enough money to pay all of the interest on the debt.  Sooner or later
investors will realize this and the market for newly issued bonds will
dry up.  With the government no longer able to sell its debt it has no
other choice but to default.  If this happens bond holders will be
left with nothing....absolutely nothing....

If bonds crash (an understatement), stocks won't be far behind.  I'd like
to hear some discussion on how an investor might protect himself in the
coming times.

< ** soap box mode off ** >

Thanks, It always feels better when you get things off your chest.

---
Steve Upp   	    	    	    	    	    upp@comm.mot.com
Motorola Land Mobile Products Sector  	            (708) 576-4953
1301 E. Algonquin Road, IL02 Room 4413
Schaumburg, IL 60196

    The opinions expressed here are certainly my own and not those of my 
    	    employer.  I welcome any comments and oppossing opinions.
-- 

---
Steve Upp   	    	    	    	    	    upp@comm.mot.com
Motorola Land Mobile Products Sector  	            (708) 576-4953
1301 E. Algonquin Road, IL02 Room 4413
Schaumburg, IL 60196
Newsgroups: misc.invest