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Recursion

(56,582 posts)

11. Trust Fund bonds are not open-market bonds and do not count against the debt ceiling

Reply to Faryn Balyncd (Reply #10)

Fri Oct 4, 2013, 01:02 PM

Oct 2013

The borrowing limit applies only to bonds sold on the market, not intragovernment bonds.

You're right that, on the whole, borrowing to redeem bonds does not increase overall debt, however, the increase in annual deficit that those new bonds produce would be illegal for Treasury to incur.

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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