[Copernicus]

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Youve almost connected the dots completely full circle. Yes, you are correct that the SS surplus is borrowed, and it is used to fund (here come the dots)......spending.

We can debate endlessly what is "good spending" and what is "Bad spending", but the spending is going to be done whether the Treasuries that fund it are going to be sold to the Social Security system or to Switzerland. Attack spending at its source, because SS has nothing to do with it.



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I actually completely agree with you here. I am just of the thought that the less places the Fed can go to create cash the better. The more we take away their piggy bank the more the excess spending will be highlighted and then changed.

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Its like boycotting oil from some country, but having to buy it somewhere else. The boyott is meaningless because it just shifts buyers who would otherwise have bought from your supplier to the supplier you boycotted. There is a virtually limitless market of borrowers, eliminating SS as a market would only have one effect, and thats a negative one overall. Without SS in there bidding for a given Treasury issue, interest rates go up, costing FUTURE generations more. If spending is going to happen on borrowed money, shifting the cost to future generations anyway, a marginal change in interest rate surely isnt going to deter the spending.