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 : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (12982)	3/19/2012 3:52:51 PM
From: TimF	2 Recommendations Read Replies (1) \| Respond to of 85487

I wasn't saying that the government shouldn't have put the money in treasuries (or that they should), merely when they do so they aren't actually creating an asset to draw down later. It is an asset for the SSA, but its a liability for the rest of the government, for the government as a whole the two cancel out, and any future SS payments beyond what the SS tax brings in has to come from other taxes, or borrowing, or "printing"/inflating, because there is no asset to draw down.