General Discussion

dawg

(10,622 posts)

34. I believe you're misunderstanding me slightly.

Wed Dec 19, 2012, 01:26 AM

Dec 2012

I specifically used the word "net" for a reason. Even when there is a general fund surplus, new treasuries will still be issued each year as old ones mature. If the general budget is balanced, total outstanding treasuries do not increase. (No "net" new treasuries) But old ones do mature, and new ones are issued to replace them and refinance that portion of the debt.

In times of general fund surplus, it is still possible to issue new treasuries to the SS fund. As privately-held treasuries mature, the general fund simply refinances with the SS fund rather than going back to issue new treasuries to the private sector at auction. There are no net new treasuries under this scenario, just more held by SS and less held by the public.

Edit history

Please sign in to view edit histories.

49 replies

= new reply since forum marked as read

Highlight:

Switching to a Chained CPI for Social Security reduces the general fund deficit by ... [View all] dawg Dec 2012 OP

Nancy Pelosi says you're out of your mind BeyondGeography Dec 2012 #1

Oh sure, "soften" the blow. But that means there's a blow to soften, doesn't it? dawg Dec 2012 #2

Under the bus with her! BeyondGeography Dec 2012 #4

Then why fuck with SS at all? MotherPetrie Dec 2012 #7

Exactly newfie11 Dec 2012 #8

Well we soon find out John2 Dec 2012 #43

Nancy Pelosi said Social Security was off the table dflprincess Dec 2012 #27

Oh that was 24 hours ago. How long do you expect a person to keep their word? BlueStreak Dec 2012 #30

We should probably be thankful she held out that long. n/t dflprincess Dec 2012 #36

yep, ZERO - big fat fuckin' ZERO kath Dec 2012 #3

The frustating thing is Canuckistanian Dec 2012 #5

That's the best remark I've seen here all day. Jackpine Radical Dec 2012 #6

Any discussion about Social Security is a distraction. SS may go in the red in 20 years???? Fuck, rhett o rick Dec 2012 #9

Only because they keep two sets of books. banned from Kos Dec 2012 #10

No. You are wrong. The General Fund pays interest on it's own debts, some of which are owed to the dawg Dec 2012 #11

No, the SS Trust Fund earns a coupon (interest) beyond its contributions collected. banned from Kos Dec 2012 #14

Let's do a little thought exercise here. Be paitient with me. dawg Dec 2012 #15

OK, by that logic (and it is logical) the SS Trust Fund could obtain a banned from Kos Dec 2012 #18

Well, not unless the general fund also ran $30 trillion in deficits. dawg Dec 2012 #21

There will always be enough Treasuries to buy since SS HAS to buy Treasuries banned from Kos Dec 2012 #23

If the general fund did not run a deficit, no net new treasuries would ever be issued. dawg Dec 2012 #28

That is not quite true. The general fund ran a surplus 1999-2000 banned from Kos Dec 2012 #29

I believe you're misunderstanding me slightly. dawg Dec 2012 #34

debt reduction reteachinwi Dec 2012 #35

You just said in one line what I took paragraphs to say. dawg Dec 2012 #38

Our government borrows money and pays interest. TheProgressive Dec 2012 #12

There are two sets of books because that is exactly how it is. TheKentuckian Dec 2012 #20

Because of inter-dependency. See above. banned from Kos Dec 2012 #26

Thank you. A voice of reason. JDPriestly Dec 2012 #13

Well, I need to change my name to "John". dawg Dec 2012 #17

Gouging senior citizens is price of getting a deal Teamster Jeff Dec 2012 #16

Why does ANY deal with the republicans have to contain some form of cutting Social Security?? bluethruandthru Dec 2012 #19

The worse part is that we aren't even coming off as reluctant. dawg Dec 2012 #22

You're right. That's why I can't figure out why our so-called democratic leaders bluethruandthru Dec 2012 #25

That is because John2 Dec 2012 #31

Long term reteachinwi Dec 2012 #32

For all we know, the system may already be solvent now. dawg Dec 2012 #37

Raising the cap reteachinwi Dec 2012 #39

Agreed. dawg Dec 2012 #41

There will actaully be a reduction in spending of descretionary spending. joeunderdog Dec 2012 #24

What makes you think these "Democrats" want to preserve SS? blkmusclmachine Dec 2012 #33

Well yeah.... it's a concession to republicans. FreeBC Dec 2012 #40

Regular bad ideas we can tolerate. dawg Dec 2012 #42

Yep. Putting ss on the fiscal table JEB Dec 2012 #44

They really should be looking at Medicare. That is a much bigger problem with direct impact on dkf Dec 2012 #45

They should be looking to make cuts to the bloated, corrupt, lardass Defense Dept. JEB Dec 2012 #46

Medicare, Medicaid and Defense are the three budget-busters. dawg Dec 2012 #47

Exactly. No other health system is as expensive as ours. dkf Dec 2012 #48

Is it considered self-abuse ... dawg Dec 2012 #49