Larry,
You acknowledge that the Social Security Administration’s “surplus dollars are borrowed by our government.”
And then you go on to say:
“and the ‘special treasuries’ in the fund pay interest...”
You seemed to have left out a step here, but your meaning is clear: you are saying that our government gives ‘special treasuries’ to our Social Security Administration in exchange for surplus dollars.
“Of course, the interest is paid with more special treasuries....”
Of course.
IOUs are not involved. No, ‘special treasures’ are. They are exchanged for surplus dollars, and those self-same ‘special treasuries’ are used to pay interest, too.
“The special treasuries have the advantage over securities traded on the open market that they do not fluctuate in value with changes in interest rates.”
One question Larry: when an old man out there in fly-over land needs some dog food for supper, he’s going to need money of the sort that our government makes --- real money, or at least, real fiat money. This is because our government doesn’t make dog food for free, and the people who do never heard of a ‘special treasury’ and won’t take one as payment. So our Social Security Administration is going to have to take one of those ‘special treasuries’ to our government and say to our government, hey, our government, give me money so the geezer can buy dog food. And what is our government going to do? Not many choices here. It can take money out of the tax money jar and get it transferred to the geezer,or it can borrow money --- but, you understand, Larry, really borrow it, with a piece of paper that exists and can be sold on a market and has an interest rate, and a principal value and every thing is fluctuating all over the place.
I can’t quite see where what I said is much different from what you said, Larry, which I guess means that you’ve sent in a pretty darn despicable post. |
