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To: P-Marlowe

Sorry, but I have to disagree with you.

When SSA needs cash to make a payment to a SS recipient, they redeem a special Treasury security.

The Treasury is obligated by law to redeem these special securities in full (interest plus principal).

The Treasury takes cash from the General Fund to redeem these securities; if there is not enough cash flow to support the redemption, the Treasury must borrow the money (i.e. sell government debt)

That is why SS is a pay-as-you-go system (or Ponzi scheme, depending on your POV), why the Treasury may not be able to make payments, and why Obama inadvertently told the truth in exposing the lie of a “trust fund”.


875 posted on 07/26/2011 6:32:55 AM PDT by bt_dooftlook (Democrats - the party of Amnesty, Abortion, and Adolescence)
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To: bt_dooftlook
Sorry, but I have to disagree with you.

Then I guess you are disagreeing with the Hoover Institute Stanford Economics professor that Mark Levin interviewed yesterday?

Well, come August 2, we'll find out if he's right or you are right. I put my money on him.

885 posted on 07/26/2011 7:00:09 PM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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