October 15, 2012 at 9:04 am #19270
To elaborate, when I say the government will “have to raise the money from the market,” I mean that it will have to rely on others buying bonds.
So in other words, in order to pay back what it’s borrowed from SS, it will have to borrow more from other people. It’s like paying back what you owe to one credit card by charging it on another credit card. And since the interest income SS needs to pay its expenditures is expanding, SS is on the fast track to its own demise. There is absolutely no way the federal government will be able to borrow all that money. Its taxes are already less than its expenditures, and printing that amount of money would lead to inflation like we’ve never seen before.