On Jun 23, 2010, at 11:38 AM, Doug Henwood wrote:
>
> On Jun 23, 2010, at 9:35 AM, Shane Mage wrote:
>
>> 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?
>
> A private holder can sell a bond to someone else for cash. The
> Treasury can't sell one to itself for cash.
But it can manage the redemption schedule to ensure that the cash will be there when needed. And if that is beyond the Administration's intellectual competence, even a Bush can always let the bonds be used as collateral to borrow from the Fed.
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