On Jun 22, 2010, at 11:11 PM, Doug Henwood wrote:
>
> On Jun 22, 2010, at 10:38 PM, socialismorbarbarism wrote:
>
>> Has the the US Government de facto
>> defaulted on its bond obligations to Social Security?
>
> The Treasury will either have to pay off the T-bonds held by the SS
> Trust Fund using new taxes, money repurposed from elsewhere, or
> freshly borrowed. In any case, one branch of the gov can't lend to
> another in any meaningful way. The SS Trust Funds assets are pure
> money of the mind.
And in what way does that make T-Bonds in the trust fund any different from all other T-Bonds that come due for redemption? Hasn't every dollar obviously been "pure money of the mind" since 1933 (domestically) and 1971 (internationally)?
Shane Mage
"All things are an equal exchange for fire and fire for all things, as goods are for gold and gold for goods."
Herakleitos of Ephesos, fr, 90