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View Diary: There will be no default on the national debt (113 comments)

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  •  SS Does Affect the Debt (0+ / 0-)

    It doesn't increase it though. The SS surplus, by law, must be invested in treasury bonds. When the chained CPI happens, the lower COLA will mean increased revenue for SS that will be invested in treasury bonds so that's less money the gov't has to borrow from foreign countries or from private individuals. Thus it will appear as if they've cut borrowing since more of it will be intra-governmental, i.e. from SS. That's the only reason I can think of that the Dems and Repugs want to enact chained CPI.

    Most of the late 1990's budget surplus was from increased SS payroll tax payments.

    "The problem with posting quotes off the Internet is you never know if they're genuine."--Gen. George Washington at the Battle of Gettysburg, February 30, 1908

    by Aspe4 on Thu Dec 27, 2012 at 11:23:50 AM PST

    [ Parent ]

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