Subj : Social Security Going Bro
To   : EARL CROASMUN
From : BOB KLAHN
Date : Wed Feb 06 2036 11:45:48


 ...

>> As I went into once before, the budget is not what we are really
>> talking about, that's just a convenient term. What we are
>> talking about is actual spending. Since maturing bonds are paid
>> off, whether by tax money or borrowed money, your point is
>> lacking accuracy.
>> If we pay off the mature bonds out of revenue, then that
>> requires balance, not surplus.

 EC> It is sometimes difficult to know when you are pretending
 EC> to be ignorant and when you really are ignorant on a given

 As I have shown in my previous respone, you are demonstrating
 incredible levels of ignorance.

 EC> subject.  If current spending and current revenue remain in
 EC> exact balance for the next fifty years, the amount of debt
 EC> will remain the same for the next fifty years.  If you are

 Do you ever do a budget for you own spending? Did you ever
 borrow money to buy a car or a house? Your car and mortgage
 payments are counted as spending in your budget.

 EC> ten thousand dollars in debt, and you spend your whole
 EC> paycheck every month, you will remain ten thousand dollars
 EC> in debt.  You have to make more or spend less to pay down
 EC> the debt.

 If you spend your whole paycheck every month you will pay off
 your debt if you, properly, account for your debt payments under
 spending. If you don't, your creditors will demand payment with
 penalties. If you don't believe me, just ask any accountant, or
 budget planning advisor. Or a real economist.

>> Paying off some mature bonds from revenue rather than borrowing
>> reduces the debt at a slower rate that paying them all out of
>> revenue, but it does reduce the debt.

 EC> To do that requires a surplus of revenue over spending.
 EC> What part of this are you pretending to not understand?

 Paying off bonds is spending. What part of that are you really
 not understanding?

 Or do you think there is some magic involved when it comes to
 the federal debt? Maybe that explains why you believed in
 Reagan.



BOB KLAHN bob.klahn@sev.org   http://home.toltbbs.com/bobklahn

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