Social Security Chickens Come Home to Roost

Fox News is reporting that for the first time since the 1980s Social Security payments exceeded receipts by $29 billion. So the $2.5 trillion in IOUs from Uncle Sam to the Social Security Administration is coming due. Needless to say, on the margin, this means that all of this $29 billion in former IOUs will become actual Treasury Bonds which will be sold on the open-market and will most likely be bought by China. That’s right, communist China is all that stands between retirees and their monthly Social Security paycheck . . . who knew?

And for all of those deficit hawks out there, forget about it. Every dollar that D.C. shaves off the deficit (as if we are all holding our breath on that one) will now be offset by the (growing) Social Security deficit. Is it just me, or is that debt vortex over D.C. getting bigger?

Related posts:

1. Russia’s Confusing Security Strategy
2. How Shaky is China’s Economy – and Society?
3. Kristi Hargrove: Home of the Whopper
4. Bring Back Debtor’s Prison – For the US
5. Will China Bail Out the World?

Tagged as: budget deficit, China, social security