The following analysis of the debt to our Social Security Fund is an estimate, but if I dare say, it’s very close to reality.
In order to calculate future earnings, investors use The Rule of 72, which divides the number 72 by an investment’s expected annual return. The result is the number of years it will take, roughly, to double your money… At 10% interest, you could double your investment every seven years. ( 72 divided by 10) Investopidia.
In order to calculate the debt and interest correctly we must make use of compounded interest, where you add the interest earned every year to the principal amount and the subsequent years the principal increased against the fixed interest. ie $100,000 principal @ 10 percent interest =$110,000 total principal and interest for the first year. The second year would look like $110,000 principal @ 10% interest = $121,000. This is how interest against principal investment is compounded.
Since we are dealing with trillions of dollars and a forty year time frame its easier and close enough to use the The Rule of 72. So here we go.
Lender Principal owed Time Interest % Interest owed $ Total Debt
Reagan $2,7 Trillion 40 years 3% $4.9 Trillion $7.67 Trillion
Bush $1.3 Trillion 20 years 3% $1.079 Trillion $2.4 Trillion
Gran total of debt to the Social Security Fund: $10 Trillion dollars or $10,000,000,000,000.
Since sums in the trillions of dust particles or dollars has very little meaning to us, look at this debt in the following way. If an individual nets $100,000 income per year it would take him/her one hundred million years to consume ten trillion dollars.
As we can see Republicans have been doing the stealing. Why haven’t the Democrats done anything to recover these monies? They, Republicans and Democrats, are in the same boat. We are on the outside looking in. When is enough enough?
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