Those IOU’s SS holds are essentially worthless because to make good on them Treasury has to sell new debt to redeem them.
It may get down to just what “Entitlement” we want to save as we can’t have them all. So take your pick.
It’s all been funny money since we went off the gold standard. Redemption of the SS bonds actually lowers the national debt-it’s all done with accounting entries.
The main point is that the Administration can choose to send out the Social Security checks by combining the current inflow with redemption of the bonds, and it doesn’t require the raising of the debt ceiling to do so.
Hence, any such decision would indeed be totally the decision of the spite house for no other purpose but political blame. It’s an easy accusation to make because most people don’t understand the actual situation.
They have heard for years that politicians have stolen the money and left a bunch of IOUs, so that a raise in the debt ceiling is necessary-it ain’t necessarily so.
I understand well the sentiment regarding the “theft” and the IOUs etc. However, just accepting that mantra, makes it easier for Dems to manuver stuff their way. I choose not to allow that latitude.
The redemption of the bonds already started during the Obama Administration - ahead of schedule. Not much is made of it, other than to note that Social Security is no longer receiving an excess.
The only time there is a big hullabalu is when the Dems want the debt ceiling raised. It’s just another example of them making misleading statements to influence and scare an uninformed group of the electorate, so that they can get their way and continue on the march to serfdom.