There is more than 2 trillion dollars in the social security trust fund. It is money that has already been borrowed and exists in treasury bonds. The Social Security checks must go out because the money is there and can't be used for anything else.
Obama is just blowing smoke out of his ass if claims that social security checks will stop if he doesn't get his way.
Judging by that POS’s purple lips, he is still blowing smoke outta his blue gums as well.
Um, not exactly.
That “Trust” fund is filled with IOUs called treasury securities. When SS payments exceed SS taxes (as they are doing now), the “Trust” fund has to redeem an IOU. When it presents the Treasury with a security to be redeemed, the Treasury must pay it. That payment comes out of the General Fund, which is why Obama said there may not be enough money to mail out checks.
Where did the $2Trillion go? When SS taxes come in, the “Trust” fund either pays current recipients, or buys Treasury securities with the excess funds collected. The Fund gets the IOU in return for giving the Treasury the cash. What does the Treasury do with the cash? It spends it, on “stimulus”, high-speed trains to nowhere, etc.
At least that is how I understand it - YMMV
To continue -
The big news about Obama’s scaring the seniors is that it is an explicit confirmation that the “Trust” fund has always been a LIE. Now, as boomers retire, the SS will consume larger and larger parts of the government budget, and/or drive increased deficit spending.
Sorry to pee on your parade, but that’s the way it is.