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Financial Planning / Social Security Reform

URL:  http://boards.fool.com/ltltthe-social-security-quottrust-fundquot-28396769.aspx

Subject:  Re: Dead topic Date:  3/25/2010  6:32 PM
Author:  SeattlePioneer Number:  5236 of 5267

<<The Social Security "Trust Fund" is a hoax

Right wing LIE.

They have been borrowed by the US Government and in its place are IOU's

So, in other words they are invested in Treasury securities, which any investor with at least half a brain considers the safest possible investment. >>



The problem is, what is the impact on the Federal government of cashing in these bonds?

The government doesn't have the cash to pay the value of the bonds, so they are simply going to issue more debt to replace this debt. When you have trillions of dollars in IOUs, will the government be able to issue trillions of additional dolla