To unpack this a bit, the Social Security administration is currently taking in tens of billions of dollars more from payroll taxes than it is sending out in Social Security checks. The difference is lent to the Treasury Department to finance other government programs.
This isn't actually true - the Social Security program has been paying out more than it takes in since mid 2010. It's already forcing "redemption" of those special bonds - meaning 100% of the incoming taxes for Social Security, and a chunk of other Federal tax revenues, are now used for Social Security.
Medicare's been that way since May 2009. Both these Ponzi schemes are imploding now - and it's only by the Government's ability to tax and cover with other funds that they haven't collapsed.
Right. I think he makes a similar point (more in article) as to why the feds can’t use their argument to keep the status quo.