Surplus Options: Cash In Bonds, Issue Refunds
Re “U.S. Quandary: Where to Park a Windfall,” Oct. 21: Your article about the U.S. government’s budget surplus outlined why it’s difficult for the Treasury to more quickly use the surplus to pay down the national debt. One reason: The Treasury can’t force holders of U.S. savings bonds to cash them in. Why not just ask owners to turn them in? Many people purchased bonds through payroll deductions at the urging of their employers during the 1980s and early 1990s. Most folks probably wouldn’t mind parting with them.
Cash realized from bonds turned in could be used to pay down personal debt or reinvested into potentially more lucrative investments. Many would be happy to help the situation by turning them in before they fully matured. I would feel better if the national debt were zeroed out sooner than 2016.
KEVIN McCARTHY
Simi Valley
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I don’t understand what the problem is. Why are our representatives in Washington wrestling with how to invest the money that cannot be used to pay down more debt? Two very good concepts were mentioned in the article (albeit briefly) that vaguely resemble what I would do with the money. One option considered tax cuts and the other spoke of then-President Andrew Jackson giving the states bonuses. To be specific I am reminded of what former Gov. George Deukmejian did with our budget surplus some years back. He gave it back to us. That’s exactly what I would do.
The government could take the extra money each year that could not be used to pay down the debt, money in excess of any rational spending need, and cut each and every taxpayer a refund check. I think it could do that without playing favorites or messing with the stock market.
ARTHUR SAGINIAN
Saugus
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Interesting--one article on how Europe’s health care is far less costly and includes far more citizens than in the U.S. and another article nearby about where the U.S. should park the budget surplus, with options in bonds and stocks mentioned, but not health care.
GREG STATHAKIS
Santa Barbara
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I have a few suggestions. Go ahead and pay off the national debt. Create a financial instrument that invests in the Wilshire total market index. Have the U.S. government invest all funds that cannot be used to pay off old debt to purchase these securities. Have these securities swapped with funds from the Social Security trust fund. That way the government will not disrupt the stock market, the Social Security trust fund will start making returns far greater than 2% at minimal risk and no money will be taken away from our seniors in order to do it.
FRANK R. BRODERICK
Santa Ana
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Do you mean to tell me that our economic growth is eliminating both the deficit and the national debt? If so, he was right. It really was morning in America after all. God bless you, Ronald Reagan.
JERRY ANDERSEN
Pacific Palisades
