Social Security and the Deficit

[septimus]

I’m sorry that I seem to keep picking on you, Little Nemo. You seem like a nice guy. But you continually misrepresent me, and disrespect me.

@Little_Nemo

If you’re referring to me, let me be clear. I haven’t changed my position on this issue. The American government is not investing money when it buys American treasury bonds. And if you don’t understand the difference between the American government buying American bonds and buying Canadian bonds, you don’t understand economics on a very fundamental level.

It now sounds like you’re standing by your earlier statement:

@Little_Nemo

The difference between the American government investing in Canadian bonds and the American government “investing” in American bonds is very real. A bond is nothing but a promise that the government will collect taxes at some point in the future. As Americans, it makes a big difference to us if Americans or Canadians are paying those taxes.

Here’s a simple comparison. Suppose every week I loan my neighbour Bill a hundred dollars and he gives me IOU’s. Bill then goes out and spends the money buying beer. Now suppose that a year from now, I have an unexpected medical bill and I need five thousand dollars. I go over to Bill’s house with those IOU’s and he has to find the five thousand dollars he owes me.

Now, suppose every week I loan myself a hundred dollars and give myself an IOU. I then go out and spend the money on beer. And a year from now, I have an unexpected medical bill and I need five thousand dollars. But it’s okay - because just like above I have a drawer full of IOU’s worth five thousand dollars. Problem solved. I’ll just cash those IOU’s in and use that money to pay off that bill.

This illustrates the fundamental difference between loaning money to somebody else and loaning money to yourself. Mainly, you can’t loan money to yourself.

I still think your position is confused, but I don’t want to argue semantics. In fact, I’m tired of arguing with you at all. But would you ever answer my question: Would it be “fundamentally different” if Soc Sec bought Canada’s bonds instead of U.S. bonds? How about if you knew U.S. Treasury would then need to borrow another 2 trillion and got it from Canada which suddenly had found itself with 2 trillion extra greenbacks on hand? :dubious:

@Little_Nemo

[QUOTE=septimus]
BTW, did you ever finally comprehend the roulette “martingale”?

Yes? Was there a time I didn’t?
[/QUOTE]

Earlier you wrote:

@Little_Nemo

You were wrong about the martingale system. And you’re wrong here. Not understanding how you’re wrong doesn’t make you right.

Your latest statement implies you think I’m still wrong about the “martingale.” Care to nominate one of the Board’s mathematicians as referee and wager on his decision?