LBJ didn’t want to raise taxes to help pay for the Vietnam War. He also started a ginormous “War on Poverty” social spending programs.
So, the budget was looking pretty weak. And foreign central banks were demanding gold in exchange for their dollars. Social security receipts and trust fund monies were merged into the general fund and have been ever since the “unified budget”.
At least none of the goof ball politicians are running around saying everything is fine as they were not long ago. And Grandma can sleep well, knowing that foreign bondholders are first in line during our bankruptcy reorg, and getting her check is dependent on borrowing money overseas from those same bondholders.
“And Grandma can sleep well, knowing that foreign bondholders are first in line during our bankruptcy reorg, and getting her check is dependent on borrowing money overseas from those same bondholders.”
The most simple explanation I have seen, and ended on the most succinct summation of the predicament. Spot on.