Here's a soft lie that must be debunked before it gets off the ground!

[happyslug]

24. We are at a point, where the choice is Social Security or defense, and he refuses to cut defense.

Remember we have had a Social Security Surplus for decades, but that is coming to an end. To keep present benefits levels, that pass surplus has to be "paid back" and that means with income taxes OR other sources of revenue (i.e. borrow more money). Thus he is facing a call to raise INCOME TAXES or CUT DEFENSE SPENDING. He does NOT want to do either, thus by calling the Social Security surplus, not a surplus, he does NOT have to pay it back and reserve the money raised for defense (or refuse to raise Income Taxes to pay for defense and to pay back Social Security).

The response should have been, if we do NOT have to honor the US TREASURY BONDS HELD BY THE SOCIAL SECURITY ADMINISTRATION, why should we honor ANY US TREASURY BONDS? Right now the interest on the debt is about 10-20% of the budget, by abolishing the debt we "Save" that much money. It is the same logic, the Federal Government can abolish its debts, the Constitution forbids the STATES from abolishing their debts, but the Federal Government can (The US Constitution also forbids the states from abolishing Contracts, but the Federal Government can). Thus Congress can abolish the Social Security Surplus. The problem is, if Congress does that, what prevents Congress from abolishing all the other US Treasury Debts? The answer is NOTHING.

In many ways this is the big fear of investors when it comes to Social Security, if Congress abolish the Social Security held Treasury bonds, the next step is ALL US Treasury bonds. Thus cutting the Trust Treasury bonds can lead investors to abandon US Treasury Bonds, on the grounds the bonds are to risky,

This fear is the only reason Congress has NOT pushed to abolish the trust fund surplus, it is the fear that if the US bonds do NOT sell, then all the US can do is print money OR raise taxes AND cut spending (and I am looking at a 90% defense cut, just like what Russia did when the Soviet Union Collapsed). This is NOT a problem as long as the US can borrow money, but the US can borrow money for it has NEVER abolished its debts, thus investors feel secure with US Treasury bonds.

This is a circle, US can borrow, for it pays its debts. Paying off the debt, permits more borrowing. If the Treasury bonds held by Social Security are abolished, how will that make investors view the rest of the US treasury bonds? This is the problem the Right wing advocate of abolishing the Social Security Surplus do NOT want to address or even hear for it means their plan to abolish the SS Trust funds, undercuts they plan to maintain defense spending.