Tuesday, May 23, 2017

Estimating the social security deficit

Debts, Deficits and Social Security

Bruce Webb gets into the issue by reading the law on off budget and on budget definitions.  However, there is one sovereign, the senators in this case, hence there is one unified budget because they all default together under the current scheme.

So, the SS deficit is its proportion of the total deficit by proportion, a very simple calculation.

We cannot distinguish in the law until we amortize the debt, and it looks like that will happen in senate bankruptcy court, and so far the senate is clueless about how that happens. So stick to the simple calculation until we get some pricing on the coordination failure we expect.

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