Would Social Security Benefits Be Cut If the Debt Limit Is Not Increased?
13th July 2011
Hint: No.
And it just so happens that the Social Security trust fund is holding $2.6 trillion of special issue Treasury bonds, which are backed by the full faith and credit of the government and are even subject to the debt limit. In other words, the trust fund puts Social Security in the first tier of creditors, along with Wall Street and the Chinese, while most other federal spending programs would have to scramble for what is left.
So, in his haste to scare retirees, the president pointed to a program that is in fact one of the least likely to cut benefits even if the debt limit is not increased.
Gee, the President wouldn’t lie to us, would he?
July 13th, 2011 at 21:38
What? Democrats engage in, what do they call it… “scare-mongering”????
Never. 😉