Re Fi

In the real world, someone can't sell one bond to two different parties. That's what the government has done. They have taken taxes, declared that they are holding a bond in return for those taxes, but then loaned those taxes right back out to themselves- in one door and out the door. The bond's current value is zero. The government has already violated the sanctity of those bonds by returning their purchase price to current retirees and to the general funds.

In the mortgage analogy, the government would extend the life of the system by stretching the same lump sum of benefits over a longer series of installments, just like a homeowner would when faced by near term costs he could not meet. In this case, the retirees are the creditors- if they do not renegotiate with the debtor ( future wage earners ), the debtor may default and miss payments.