[FreedomNotSafety]

You are almost entirely correct. But, the government cannot default on SS. It has no contractual obligations on which to default. The same is true for most welfare programs. Todays beneficiaries are legally owed nothing. The government has made contractual obligations on most of its debts. But then it has only guaranteed to pay its dollar debts in more dollars.

The only crisis that exist here is political. I am guessing that we will trim benefits, raise taxes, and write down our debt via inflation. After inflation (slow default versus instant default) ravages about 50% of our individual wealth, most of which is what other people owe us such us bonds, treasuries, mortgages, CDs, etc. and not real physical assets, then we will go on the next borrow and spend binge.

[WV Mountain Mama]

I was speaking of a government default on its debt which would end entitlements or a bond market dislocation, which would cause .gov to lose a drastic amount of $ and cut entitlements in half (at the least), not a default on entitlements. I thought I was clear, sorry if I was not.