Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (217569)	2/5/2005 1:35:14 AM
From: TimF	Read Replies (1) \| Respond to of 1572508

The bonds are an obligation. The obligation is either met, in which case Social Security is solvent If the bonds are paid social security is not solvent. It will burn through those bonds over the next several decades. An even if there were enough bonds to pay for all of social security the money would have to come from somewhere. The bonds are government obligation to itself. The government could cancel them without a general default just as I could "lend" money from my checking account to my savings account and never "pay it back". Its not a default if the holder of the bond cancels the debt and the government is the holder of the bonds. Alternatively if social security paid out less so it stayed in a surplus it could keep buying more bonds. It will be in a surplus for some years to come so default isn't even a real issue yet. The bonds aren't really the issue. They can be paid back but the social security (and Medicare) spending will continue to grow. If the benefit formula does not change then the spending will simply be to high. The level of spending will bust the budget. It will make the spending in Iraq look like petty cash. Tim