As bonds are redeemed, you redeploy the money at the new higher rates.

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And when the Treasury does, total government debt subject to the debt limit falls by the amount of the redemption thus freeing up the Treasury's ability to issue new bonds equal in amount to the redeemed Trust Fund bonds.

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There would be no sacrifice by German taxpayers, as the hard assets would gradually be sold, whereupon the bonds would be redeemed.

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Congress spent these surpluses, and the U.S. Treasury issued the Social Security Trust Fund special bonds, which can be redeemed whenever the Social Security system has a current account deficit.

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And buyers of index-linked bonds have protection against deflation, since they will always be redeemed at their face value or higher.

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Lottery bonds are a type of government bond that has a chance to be randomly redeemed at a value that is higher than par value.

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