They don't have to be traceable on the market. All that matters is that the treasury issues them, the treasury pays interest, and the treasury redeems them.
"Regardless, the point in fact is that the SS is running a cash flow deficit"
Not yet; all the interest from those bonds is keeping it positive.; in fact, we made about $70 B in '11.
In, $805, out $736; result... happiness.
"Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness.Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.”
The 2011 Trustees Report Press Release stated:
- "Income including interest to the combined OASDI Trust Funds amounted to $805 billion in 2011. ($564 billion in net contributions, $24 billion from taxation of benefits, $114 billion in interest, and $103 billion in reimbursements from the General Fund of the Treasury—almost exclusively resulting from the 2011 payroll tax legislation.)
- Total expenditures from the combined OASDI Trust Funds amounted to $736 billion in 2011.
- http://en.wikipedia.org/wiki/Social_Security_Trust_Fund
Social Security’s total expenditures have exceeded non-interest income of its combined trust funds since 2010, and the Trustees estimate that Social Security cost will exceed non-interest income throughout the 75-year projection period. The deficit of non-interest income relative to cost was about $49 billion in 2010, $45 billion in 2011, and $55 billion in 2012. The Trustees project that this cash-flow deficit will average about $75 billion between 2013 and 2018
ssa.gov 
"IOUs from the US Treasury"
IOUs don't pay interest. |
