What’s this I hear? If the government can’t borrow more money as of Aug 2nd the President cannot guarantee Social Security checks will be issued on Aug 3rd? I thought the debt ceiling was about paying past debt obligations. More importantly, I’ve been seeing Democrats for years insisting the Social Security system is solvent. I saw one just two days ago.
Rep. Xavier Becerra, Vice Chairman of Democratic Caucus on Fox News Sunday.
>>Bret: Essentially, correct me if I’m wrong, the Social Security trust fund is a pile of IOUs from the government, that was taken from congresses past that have already borrowed that money and spent on other programs so you have to pay it back eventually is that not accurate?
>>Becerra: The best way to display this for you. do you have a wallet? Let me pull this out. Five dollar bill, right? It’s just a piece of paper but it says $5 on it. Let me show you something else. This is a $50 savings bond. My daughter got it when she was born 16 years ago. Both of these are pieces of paper. This is a treasury certificate, this is a dollar. Both of them rely on the full faith and credit of the United States to be covered. If I try to cash either one of these in it’s only because the federal government says you can count on getting paid. That is what Social Security has to the tune of $2.5 trillion. So when people say that Social Security has no money, they’re saying to you that for the last 30 some odd years politicians have been stealing the money out of social security. It’s there. Ask china.
And now today.
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.
Hello, China? Do you have a wallet?
Maynard adds: For additional information and ranting commentary, see my post, The Myth of Social Security.