RE: SS, MORE than retirement (Trust Fund Debt Rollover)

[James <jamesk_51@hotmail.com>]

>From: Andre Dermant 

>>>>James in his message of 4/25/99 13:20:41 says that when the time comes to start redeeming the Government Obligations owned by the Trus Fund by issuing new publicly-held debt, the National Debt will not increase. This is correct, BUT the interest on these bonds will have to be paid to the public. How much annual interest will be paid when the entire debt owed the SS will become due? And what will be the source of the funds to pay it?

But you miss the point.  All of the obligation to the SSTF came from the general fund's spending money it did not raise through the income tax.  All of those obligations would exist even if SS never existed.  We are not incurring public debt or any debt to bail out SS as we redeem those bonds.  That debt was due to general fund deficit spending.  Let's place the blame where it is due!