Quote:
Originally Posted by Mmmm, Burger (C.J.)
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.
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I was under the (possibly? certainly? mistaken) impression that SS wouldn't be selling the bonds, but having them repaid. If they are actually going to be selling them on the open market, (1) they will recover less than face and (2) that will likely have some unexpected/unintended consequences.
