The US should default on treasury bonds held by the wealthy.

sadiesworld

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Tue Feb-08-05 06:56 AM
Original message

The US should default on treasury bonds held by the wealthy.

Why is it okay to default on the bonds underlying the debt owed the SSA, but not on those held by individual and foreign investors?

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Ganja Ninja

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Tue Feb-08-05 07:23 AM
Response to Original message

1. Default is such a harsh word.

And clearly bonds held by the nameless masses aren't the same as other bonds. (/sarcasm)

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izzie

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Tue Feb-08-05 07:55 AM
Response to Original message

2. Please do not say that. I put all my saving into Bonds.

They pay bad but they do pay.

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sadiesworld

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Tue Feb-08-05 08:04 AM
Response to Reply #2

3. And the working poor are counting on the bonds used to secure

the SS debt. Why are those funds less important than your savings?

BTW, it wouldn't happen in a million years, but I think the point is a valid one.

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Skidmore

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Tue Feb-08-05 08:08 AM
Response to Reply #2

4. I own a few too, We don't have all our savings there

but what I do have is intended as "rainy day" money later in life. I'm not wealthy either. To the original poster, please recall how many payroll bond purchasing programs exist across the states. There are lots of little people who own bonds.

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sadiesworld

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Tue Feb-08-05 08:14 AM
Response to Reply #4

5. Thank-you for helping me make my point.

You are HORRIFIED at the thought of the gov't defaulting on those bonds...WHY IS SS ANY DIFFERENT???

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KittyWampus

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Tue Feb-08-05 08:50 AM
Response to Reply #5

6. Ohhhhhhhhhhhhhh.... NOW I get it... it's still early.... good ruse!

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Yupster

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Tue Feb-08-05 03:15 PM
Response to Original message

7. Because you can't owe money to yourself

The asset and liability cancel themselves out and pfft - the money is gone.

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bryant69

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Tue Feb-08-05 03:17 PM
Response to Reply #7

8. Not Exactly

The Government is not a monolith. The Social Security Trustees and the United States Treasury are two seperate entities. The Social Security Trustees invested money to the United States Treasury. The United States Treasury is required to pay back that money.

Bryant
Check it out --> http://politicalcomment.blogspot.com

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Yupster

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Tue Feb-08-05 08:49 PM
Response to Reply #8

9. Wait until 2017

when the social security surplus will no longer be there to mask the size of the budget defecit.

It will be at that point that congress will pass a "unified budget" to avoid the confusion of having multiple governmental pots of money.

At that point the social security system will become part of the general fund, and since the general fund can't owe money to itself, the debt will be magically ledgered out.

Pufffft.

When it happens, remember you heard it here first.

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