Barack Obama wants the young to get out and vote for him in November, but they are less enthusiastic than they were. He doesn’t care about the elderly because they won’t vote for him anyway. Therefore he is buying votes from the youth by freezing the interest on their college loans for one year (long enough to get him re-elected).
So, do you know how he’s paying for it? Well, you know those unsustainable pensions that retired and soon-to-be retired workers need in order to live? He’s taking the money out of those funds. He’s bankrupting a bankrupt fund even more! He will destroy us to get re-elected. He must get his ideological nonsense in place – he needs four more years with his hands in your wallet.
…Columnist Daniel Indiviglio of Reuters dug up the details this week, calling the bill financial “hocus-pocus.” The student-loan scheme was buried in a transportation bill. In it, the government raided its pension-guarantee fund to the tune of $6 billion — although the fund is already running a deficit of $26 billion.
The student-loan bill puts the pension system in jeopardy. To cover future payouts, pension contributions will need to rise by as much as $50 billion a year. The fund’s already broke; now, thanks to this reckless bill, it’s one step closer to total collapse.
Plus, the bill lowers accounting standards for pension funds, letting them contribute less money than before while forecasting the same future return. That is, the president and Congress are pretending that a system that’s already broke will magically prosper in the future with even less direct investment.
The Pension Benefit Guaranty Corp is designed to insure private retirement plans. Millions of present and future retirees depend on it. Putting it at risk is simply irresponsible.