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Originally Posted by Cletus Miller
I was under the (possibly? certainly? mistaken) impression that SS wouldn't be selling the bonds, but having them repaid.
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I don't see how this relates to Burger's question. Today, before my fantasy world, the trust fund redeems the bonds (i.e. has them repaid by treasury). There is currently a deficit, so treasury issues new bonds to pay for it (oddly enough, likely at lower rates, but let's leave that aside). But net change in the $14T in debt is zero, no? Instead of owning the trust fund, new bond holders are now owed.
ETA:
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If they are actually going to be selling them on the open market, (1) they will recover less than face
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Is that right? Assuming that they could actually sell their
special issue securities, it like a lot of what they hold maybe at well above market interest rates.
