Richie: If you had bought T-Bills with your Social Security money, would you say that you didn't save it? That's what the SSA did with their excess funds. Accounting tricks made the US Gov't deficits LOOK smaller than they actually were but the SSA surpluses still went into T-Bills - the same ones that investors from all over the world are still clamoring for despite the S&P downgrade.

The government borrowed money from the SSA (and everyone else who bought TBills) to spend more than they took in and the bills from the SSA are coming due.

True, there was no "lock box" for Social Security, to use a phrase that was popular some time ago. Perhaps it was the using of that phrase that finally got people to understand what Social Security's finances were in the first place.

If what you're telling me is correct, then what was the b.s. about not being able to cut Social Security checks if the Debt Ceiling wasn't raised? They still squandered MY MONEY for their own purposes, when they were supposed to be "saving it and investing it for me". How am I fundamentally wrong here?

Because, once again, people were quoted out of context.

I listened very carefully to what Obama said - he said he could not guarantee that *ALL* checks would go out. It would be similar to having $100 in bills to pay but only $80 in your wallet to pay them. Sure, you can pay MOST of what you owe but not all.

The SSA refused to say what they would do if the default happened. In addition, nobody in the government said what they would do and the Treasury didn't say who's bonds (when redeemed) and coupons (interest payments) would be paid and who's wouldn't.

The thing is, it all depends on your point of view. Either TBills are the safest investment in the world (their track record *is* still unblemished, despite the threat) or "squandered" money with "nothing but a pile of IOUs". But, *by law*, the Social Security Administration *must* invest surpluses in T-Bills.

djplong,

Again you try to cover for Obama:


Obama was asked about this in a July 12, 2011, interview with CBS News anchor Scott Pelley. Here's their exchange:

Pelley: "Can you tell the folks at home that, no matter what happens, the Social Security checks are going to go out on August the 3rd? There are about $20 billion worth of Social Security checks that have to go out the day after the government is supposedly going to go into default."

Obama: "Well, this is not just a matter of Social Security checks. These are veterans' checks, these are folks on disability and their checks. There are about 70 million checks that go out each month."

Pelley: "Can you guarantee, as president, that those checks will go out on August the 3rd?"

Obama: "I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue, because there may simply not be the money in the coffers to do it."
He did not say that he said "he could not guarantee that *ALL* checks would go out"

Thank you. But again, what I'm saying budget or no budget; debt or not debt, The government has been saving and investing my money for me without consulting me for 50 years.

The government did this because it did not expect me to provide for my future judiciously. Well, did the federal government? I'd have to say no, if they're scurrying to figure out how to send the dividends of all the money taken from me, for my benefit, back to me. Again, how am I fundamentally wrong?

G Gordon Libby: