Pittsburgh, Pennsylvania – July 31 –
There are those that live in some kind of a fantasy world. They know that the Social Security Trust fund has been replaced by funny money. Yet they will defend what has happened. In a manner of speaking; the real money has been spent, and now we are facing reality. Social Security recipients have been left holding the bag.
It is irritating to me to hear about how wonderful Franklin D. Roosevelt was. Well, Social Security as it exists right now is a memorial to a myth. According to this article; not one myth, but 5 myths.
“Over the years, the surplus has been lent to the federal government to pay for other programs”
Over the years, the surplus has been lent to the federal government to pay for other programs. In return, the trust fund received IOUs in the form of special-issue, interest-paying Treasury bonds. These bonds are backed by the full faith and credit of the U.S. government, just as regular Treasurys are.
I'll wait until the debt limit issue is resolved to find out whether: "These bonds are backed by the full faith and credit of the U.S. government". It seems to me that the credit card of the United States is in question. If the full faith and credit is viewed as risky, then the IOU's aren't worth what they are said to be. “The trust fund has been replaced with IOU’s is truthful.” To pretend that the IOU’s represent the same value as the value of the money borrowed is untruthful.
The IOU’s are risky, and the money borrowed, wasn’t risky at the time it was borrowed.