[kabar]

Yes, these are interest bearing loans to the USG in the form of T-bills. We borrow about 40% of the money spent by the federal government. SS is just a part of it. We owe money to the tune of $18 trillion. SS is about $2.4 trillion. All interest and redemptions must come out of the General Fund.

An even larger problem is that two thirds of the expenditures of the federal budget come from entitlement programs and debt servicing costs. 40% of Medicare expenses already come from the General Fund by law. These costs are increasing as the population ages. These costs are far more than debt servicing costs. The welfare state chickens are coming home to roost.

[nascarnation]

Excellent post.
The 40% borrowed money elected Obama in 2012.
And someday there won’t be any way to manufacture more money.