For two decades your Social Security payroll taxes have been used to offset the cost of upper-income tax cuts. If I’m not mistaken that money has been used at the highest rate (i.e., in absolute dollars terms per year) under this President Bush. The money is supposed to be paid back, with interest.
That’s the deal. That’s what bonds are.
But now the president stands there holding on to one of these notes and jokes that they’re not worth anything.
Foreigners hold quite a bit of US debt. What are theirs worth? Are they going to get their money paid back?
Wealthy Americans do too. In fact, most of President Bush’s personal wealth is in the form of US government debt. Is he going to get his money paid back?
He wants to borrow $5 trillion more. Are those folks going to get paid back?
UPDATE: Marshall is on a roll.