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Recursion

(56,582 posts)

7. Treasury has to borrow more to convert the Trust Fund's bonds into cash

Reply to djean111 (Reply #2)

Fri Oct 4, 2013, 12:30 PM

Oct 2013

Last edited Fri Oct 4, 2013, 01:39 PM - Edit history (1)

And since Trust Fund's bonds are not open-market bonds, they're not part of the debt ceiling calculation, meaning that if no new borrowing is authorized, the Treasury can't convert the Trust Fund's bonds into cash.

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Highlight:

Disaster Capitalism: Is delaying SS checks the kabuki crisis the RW needs for "Grand Bargain"? [View all] Faryn Balyncd Oct 2013 OP

I have asked myself the same question...is this "disaster capitalism" antigop Oct 2013 #1

I must say that this has crossed my mind, as well n/t OhioChick Oct 2013 #5

Since SS is already funded, why/how can the checks be delayed? djean111 Oct 2013 #2

Treasury has to borrow more to convert the Trust Fund's bonds into cash Recursion Oct 2013 #7

You know that, I know that, but very few people .... oldhippie Oct 2013 #12

The GOP already rejected Obama's chained CPI offer leftstreet Oct 2013 #3

The GOP wants most everything -- chained CPI, MC cuts, selling off public lands ...... Faryn Balyncd Oct 2013 #4

I'm not sure I understand your question about the Trust Fund Recursion Oct 2013 #6

Invoke the 'Saint Ronnie 18 Debt Ceiling Raises" rule & let the Repukes choke on it. displacedtexan Oct 2013 #8

That sounds like the rationale that would be used. . . Faryn Balyncd Oct 2013 #10

Trust Fund bonds are not open-market bonds and do not count against the debt ceiling Recursion Oct 2013 #11

I think you are mistaken. Kaleva Oct 2013 #14

I didn't claim otherwise Recursion Oct 2013 #15

It's too transparent to be true Disaster Capitalism IMO n/t Auggie Oct 2013 #9

They may try to run that play, but I don't think it's going to work. n/t winter is coming Oct 2013 #13