New Retirement Proposal For American Workers Modeled After TSP

[HappyTexan]

Originally Posted by golfingduo

In a sense but they could not and connot actually take funds from those acounts. Since they are actual treasury notes they actually already have the money. So back to that page here is another piece that explains it.

Treasury notes are debt, not money.

And it's investor's money that buy those Treasuries and the interest earned and principal redeemed are investors' money, not the Treasury.

The Treasury has no money. They issue debt (Treasuries) to get their money.

[oldsoldier1976]

Originally Posted by HappyTexan

Treasury notes are debt, not money.

And it's investor's money that buy those Treasuries and the interest earned and principal redeemed are investors' money, not the Treasury.

The Treasury has no money. They issue debt (Treasuries) to get their money.

So you just proved my point. Those are debts the treasury owe on. They already got their money. All they can do is not issue new notes to cover the interest reinvestment. Those notes are interest bearing and are issued daily. That is why they can do that. Each day the G fund would have to buy new securities. That obligates the debt. It is a gimmick.

The argument is pointless though. We are arguing about semantics. Like the time I told my accounting teacher that all she was teaching was in Venetian to me. That didnt go over well.

[HappyTexan]

Originally Posted by golfingduo

So you just proved my point. Those are debts the treasury owe on. They already got their money. All they can do is not issue new notes to cover the interest reinvestment. Those notes are interest bearing and are issued daily. That is why they can do that. Each day the G fund would have to buy new securities. That obligates the debt. It is a gimmick.

The argument is pointless though. We are arguing about semantics. Like the time I told my accounting teacher that all she was teaching was in Venetian to me. That didnt go over well.

They are taking investors' interest though. That is not their money to spend. That is investors' money that they are "borrowing" without issuing notes.

Granted they do pay the interest back later once the debt ceiling is raised so currently investors don't lose whatever interest they would have earned had the money been reinvested instead of moved to the Fed budget.