Sooooo About that Social Security...
As just about everyone including my 1st grader already knows, Social Security is broke. Like the FDIC, it was looted by Congress during "the good times" and stuffed with IOUs - aka Treasurys - since few believed the up and out motion of the Fed's latest bubble would ever deflate and head southward.
Well that day has come and our day of reckoning has arrived.
Estimates are that the SS "fund" is owed about $2 trillion and unfortunately, Treasurys won't pay your bills so sending out T-bills instead of checks isn't going to work. That means the government will need to issue more debt into an already jam-packed bond market in the hopes that some sucker foreign government will come along and gobble them up. Robbing Peter to pay Paul? More like robbing Peter to pay Paul's MasterCard with the Visa.
And you thought Obamacare was going to help? Bwhahaha! Just what we need, more unfunded entitlements. It's certainly nothing new:
Senate - October 10, 1990 - Mr. CONRAD. We are looting the Social Security trust fund to pay for the ongoing operations of Government.
Senate - March 30, 2009 - Mr. CONRAD. ...submitted the following concurrent resolution, which was placed on the calendar: - S. Con. Res. 13
SEC. 316. DEBT DISCLOSURES.
(c) Social Security .--The levels assumed in this budget resolution project that $700,000,000,000 of the Social Security surplus will be spent over the 5-year budget window, fiscal years 2010 through 2014, on things other than Social Security
Social Security wants its damn money, now pay up...
See also: and for real fun, check out the Fed's own Richard Fisher in Expressing a Going Concern Doubt on the United States Government, Not According to GAAPDallas Fed's Fisher: Large Deficits Will Be Run For as Far as the Eye Can See and Social Security to start cashing Uncle Sam's IOUs via the AP.