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

To: Road Walker who wrote (357681)	11/9/2007 10:27:04 AM
From: combjelly	Read Replies (2) \| Respond to of 1573849

"Are you suggesting that the US is going to default on it's bond obligations?" It seems to be the heart of his argument. He sees it somehow more likely that the government would default than someone else. The "why" is never addressed. Just assumed as a given.

To: Road Walker who wrote (357681)	11/9/2007 10:29:56 AM
From: TimF	Read Replies (1) \| Respond to of 1573849

No you don't. You have the current law. You also have bonds. No you don't. Neither current nor future social security benefit recipients owns a government bond, or any other type of government debt obligation, by being part of the social security system (they can buy federal government bonds, or own funds that own such bonds, but that's their own investment, not something they get from the SSA). Even the bonds owned by the SSA are in effect loans from the government to itself. Loans to yourself are neither real assets nor real liabilities. The bonds could be canceled without default. They could be doubled without their being any real effect (other than delaying the automatic reductions in benefits that current law will force, if it isn't changed first, when the nominal trust fund runs out).