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31 sats \ 65 replies \ @Cje95 7 May \ parent \ on: US Treasury issues 125 billion dollars worth of new bonds this week econ
To be honest I am not sure… I think they could be something that take care of the issue and they wouldn’t need to do that however I could see government pensions being another big off ramp for these bonds as well
Could they do that?
Actually, arent they using social security to prop things up?
I think the government has borrowed from it time and time again.
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The social security trust was a fiction to begin with, but even so, it's been in the negative for several years now.
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Isnt it because they borrow from it though?
It should be highly positive with all the growth we have had in our economy in the past.
Just amazes me how mismanaged the money is.
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Not really, but sort of. There was some fake accounting that was called the social security trust fund, but it was never legally binding in any way and the program was never actually set up to be financially sustainable.
On occasion, politicians have publicly justified their reckless spending as borrowing from that fake trust fund, though.
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It was sustainable as long as the population kept increasing... ironically illegal immigration is really great at helping social security stay afloat since those individuals can never draw down from it
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Just like how pyramid schemes are sustainable.
What I mean is analogous to how defined contribution retirement plans are sustainable, but defined benefit plans are not. There was never a social security trust fund that mechanically contained all of the money or assets that would eventually get paid out. It was always organized like an unfunded liability, even if there was occasionally money somewhere that someone claimed was for social security payments.
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I just dont understand why they would sell the concept and then ruin it for the people in need.
I just leaves a bad taste in your mouth.
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They didn't ruin anything. They still make all the payments.
All that's happened is that the accounting (which was always fake) looks different now.
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I would agree however one thing I have learned is that what makes the dollar worth anything is the US military. If you think the US military is going to collapse like Russia then you can think that the dollar is collapsing however given the sheer size and lethality of the military the dollar will remain stronger than most just due to the fact of in conflict you might hit the US once but the US will make you bleed for generations to come
If they got really desperate, they could do a bail-in for themselves and convert people's savings into treasuries.
The one certainty is that they will do something to prop up demand for US debt.
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Everything they do is cheating.