I am not only missing your point, I can't understand your logic. There us no money in the SSTF to spring. I gave you OMB's description of the trust fund "assets", i.e., Thus, the balances of trust funds are not a measure of resources available to pay future obligations for the respective programs; those resources will need to come from federal revenues or additional borrowing in the years those obligations are due.
Where is Obama going to get $50 billion to "spring" some IOU's from the Trust Fund? And what is the utility in redeeming the Trust Fund IOUs? You would have to deposit the cash into the Trust fund or issue new IOUs.
The non-public debt holding is, after all, an asset to the trust fund. I’m wondering if that asset can be converted to public debt, raising an equivalent amount of cash from the public in the process, that’s all.
Sorry, but that is just pure sophistry. "The balances of trust funds are not a measure of resources available to pay future obligations for the respective programs; those resources will need to come from federal revenues or additional borrowing in the years those obligations are due." Basically, the IOUs represent the full faith and credit of the USG to pay future benefits. They can't be converted into real assets. Again, the SSTF is included in the $14.3 trillion national debt.
I’m sorry. I assumed earlier that, because you were coming up with most of the information, you understood it.
Take some time and carefully read over what I’ve written so far, dropping your assumption that those non-public securities held by the trust fund are absolutely worthless. They are not worthless, for if they were, they would not be counted against the debt ceiling.
Once you’ve overcome that assumption, and understand what I’m saying so far, I’d like to pursue this to a logical end, but we can’t get their if you don’t get what I’m saying up to this point.
If someone else following along does get what I’ve said so far, and wants to join in, I’d then flesh out what I think are some very interesting implications of all this, along with discussing the legality of it.
>>...those resources will need to come from federal revenues or additional borrowing...<<
However, since you repeated this twice in your last post, and stated that you don’t understand my logic, here’s the part that you’re missing: The resources I’m talking about would come from “additional borrowing” as the OMB asserted in the quote you repeated twice for emphasis.
Again, the point is that the non-public debt COUNTS AGAINST THE DEBT CEILING. I’m suggesting a way that it be converted to public debt, leaving the debt ceiling unchanged, while enabling the raising of an equivalent amount of cash.
I haven’t said anything yet about the broader implications of this, nor about whether it’s a good idea or not. That discussion has can wait until someone understands what I’m saying and wants to pursue it. For now, we’re stuck at “It can’t happen.”