Quote:
Originally Posted by Cletus Miller
I don't think this is correct, as once the SS Bonds are being paid off (ie, swapped for public debt), the shortfall goes on-balance sheet, where the accumulation of the SS Bond debt has been off-balance sheet.
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Maybe I'm misunderstanding you, but as the SS trust fund redeems the Tbills it "owns" to pay benefits (i.e., its net purchases become negative) then Tbills will have to be sold instead to the private sector to finance the debt. But it's still debt, just to someone different. FWIW, the "debt" that is widely cited ($14T and growing) includes the debt to the SS trust fund.
