Ahahahaha! Whoop! Whoop!

President Obama famously played to grandma’s Social Security fears this week, saying in an interview about the debt-ceiling talks that “I cannot guarantee that those checks go out on August 3 if we haven’t resolved this issue because there may simply not be the money in the coffers to do it.”

To which a friend of ours replied, whatever happened to the trust fund?

That’s the fund that, according to our politicians, is holding all those Social Security taxes that workers pay. Why can’t Congress or Mr. Obama dip into that $2.6 trillion cash hoard to pay benefits until this debt-limit business gets sorted out?

Oh yes, very well done indeed.

5 thoughts on “Ahahahaha! Whoop! Whoop!”

  1. It’s not only an American delusion – think of all the fools who believe that we have a national insurance fund, or that national insurance contributions (specifically) fund the nhs.

  2. William F. Buckley once likened the ‘trust fund lockbox’ (essentially a load of IOUs) to thirteen-year-old girls writing Valentines to themselves. It’s no great mystery that Leftism hitting reality and shit hitting the fan play out in such parallel fashion.

  3. The social security fund is supposedly a filing cabinet full of T Bills. Fine, let social security sell some of them to pay the bills. There’s a market in these things, is there not?

    Isn’t Obama really saying he won’t allow social security to liquidate its assets? Therefore this is blackmail, pure and simple. He’s threatening grandma’s check because he can, not because there isn’t the money.

    I’m not sure there is any comparison to the UK. HM Government has never claimed NI was a fund. It’s always been freely agreed it’s paid out of current tax receipts.

  4. “Leftism hitting reality”

    That’s an odd description of the actual situation in the US, which is far-right nutjobs denying reality in order to screw the country for political gain.

    The social security fund is supposedly a filing cabinet full of T Bills. Fine, let social security sell some of them to pay the bills. There’s a market in these things, is there not?

    I could be wrong, but my understanding is that if they did that, it’d breach the way the debt ceiling legislation is drafted. Not least because if doing so didn’t breach the debt ceiling legislation, then it’d already be happening.

    I’m not sure there is any comparison to the UK. HM Government has never claimed NI was a fund. It’s always been freely agreed it’s paid out of current tax receipts.

    Correct. Anyone claiming that NI is anything other than supplementary income tax, or that there’s any difference between NI-related benefits and other benefits, is a Silly Person.

  5. JustAnotherTaxpayer

    There is a National Insurance Fund, a direct equivalent of the Social Security Trust Fund – i.e. it’s no more than a set of accounting entries.

    The US govt could hold marketable bonds in the SS fund, but happens not to. If they had done that, they could indeed have sold those bills back into the market for cash. I guess that would have technically increased their net indebtedness which is what the debt limit is supposed to cap?

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