On Apr 27, 2011, at 4:45 PM, Matt Cramer wrote: > n one of our local > political chat boards I'm in a raging debate with a blue-dog Dem type > who claims those bonds in the trustee accounts are a looming crisis: the > Treasury is going to have to borrow to make payments on them so the > whole thing is an "economic fiction" (his words) created to hide the > fact that our benefits are unsustainable and we'll have to borrow to > make payments.
The benefits are entirely sustainable, but the rest of this is true. When the bonds are redeemed, the Treasury is going to have to come up with the money somehow - either raising taxes or borrowing more. Either that, or cutting benefits. How can the Treasury borrow from itself? How can you left pocket lend to your right pocket? It's insane. Doug _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
