Social Security Trust Fund Will Run Out Of Money – What Fund?
Various people report that the Social Security Trust Fund will run out of money in various years – 2033 is a common one. Surprise! There is no “trust fund.” Like other Ponzi schemes, Social Security pays out only the money it takes in each year. The “trust fund” consists of non-negotiable government bonds.
So what, you say? I’ll tell you so what.
Say you borrow $100 till payday. You write an IOU and I put it in my sock drawer. You are a reliable person, so I count it among my assets. Now say I take $100 to spend on the weekend, and I put my own IOU in the drawer. Is it an asset the way your IOU was? No. It is merely a note that I spent the money – which is gone.
If I hold a government bond, it’s an asset. I can sell it for cash. But if the government holds a non-negotiable government bond, it’s like me holding my own IOU. It’s merely a reminder that I spent the money. The “trust fund” doesn’t exist. No fund, no trust.
Oddly, it is the very people who oppose Trump’s and Musk’s efforts to cut waste and put government spending on a diet who are the same people who babble about the Social Security “Trust Fund.” The massive contradiction escapes them entirely.
So when a politicians or bureaucrats talk about the “trust fund,” you know they are either (1) liars who know they are lying, or (2) incompetents who don’t know. But in either case, it is merely the braying of jackasses.
