They are real T-bills that earn interest and are backed by the good faith and credit of the USG, the same way that the T-bills are backed that are held by the Chinese. All T-bills are really IOUs.
In contrast T-bills are those bills that the Treasury sells to get the money, they can be bought and sold.
The non-market, interest bearing T-bills held by the SSTF must be redeemed by the USG, which is the only difference. The USG is obligated to redeem them in much the same way as any other T-bill or savings bond.
Actually one congressman on Cavuto today played up the joke like he was serious. He said that SS and medicare benefits can be paid without increasing the debt limit. They can be paid out of the ‘trust fund’. I loved it, I suggested that line in 2011.
They can be paid out of the trust fund, but the GF must come up with the money to redeem them. Since we borrow 42 cents of every federal dollar spent, we will have to borrow the money to pay the benefits. And we can't exceed the debt limit to do that.
That is silly, they may say T-bills but they are just IOUs from the government to themselves. They are not to those who pay FICA or even those who get benefits.
‘credit of the USG’ ???
If you buy a T-bill the government owes that money to the bondholder, if you pay FICA the government gives an IOU to itself(when there was a surplus), spends your money and calls it a trust fund. Its a complete scam.