Toddsterpatriot
Diamond Member
In reality, it really is just spending the money. When you buy a bond, you finance government spending. When the government buys its own bond, it is simply financing its own spending. And it does that through taxing and borrowing. It is literally no different than just taxing and borrowing the money without a "trust fund." In reality, there is no trust fund.The government buys its own bonds, spends the money used to buy those bonds, and calls the bonds an asset. It then turns the assets into cash by raising taxes or borrowing. Its a Ponzi scheme, and the assets offered by a Ponzi scheme are no assets at all.
The government should just spend the money without resorting to the bond dodge.
As you noticed, the existence of the "Trust Fund" doesn't help pay the benefits during regular times or during a debt ceiling shutdown.
Yes.