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The latest from the Default Deniers is that the government has a sufficient revenue stream to cover the interest on its bonded debt.  They convieniently overlook the bonds themselves which come due.

As a self-employed electrical contractor, all my working life I paid 15.3% of my taxable income to Social Security.  Now that I am retired, I receive that money back, a moderate amount each month.  This is a familiar story, but it is not widely known what happened to the money when I originally sent it in.

Social Security is not sitting on a giant pile of cash; it is not invested in the markets; it holds only U.S. government bonds.  Each year the Feds appropriate the money sent to S.S. by folks like myself and give U.S. bonds in its place.  These are special bonds which cannot be sold into the market; they must mature and be redeemed in cash -- a certain, large amount each year.  This is the source of the funds paid out to recipients.

This mountain of maturing bonds, added to the giant pile of the same held by the Chinese and other foreign investors would probably gobble up the whole revenue stream blandly pointed to by the Republicans.  I believe this is part of the plan.

Republicans have always hated and mischaracterized Social Security, seeing it as welfare rather than what it is, an ANNUITY managed by the Federal Government.  If their strategy works, impeding the government's ability to cover all its obligations, who do you think they will suggest take the hit.  Not the Chinese, because we cannot damage our international credit rating.  We locals are available targets, per plan.

The Republicans are like rats.  They never give up trying to get the cheese and are constantly probing for holes to get in and steal it.

We must be equally vigilant.

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