The SSTF holds $2.8 trillion in non-market, interest bearing T-bills, which are backed by the full faith and credit of the USG. The SSTF is part of the $33.5 trillion national debt as are the T-bills held by China, Japan, the Fed, and others.
Since SS has been running an annual deficit for some time now, i.e., benefits paid exceed revenue collected from payroll taxes, the shortfall is made up by cashing in T-bills held in the SSTF thru the General Fund. Although the GF redeems the T-bills, the National Debt is decreased by the amount of the SSTF T-bills redeemed. It is a wash. However, the SSTF will be exhausted in 2033.
I’m 71. I’m so disgusted and tired of fighting the good fight I’m beginning to think “eff it, I’ll be dead anyway” by then.
But...I’m leaving behind a wonderful, productive daughter (and a nephew like her) who is going to take the full brunt of this and that breaks my heart. All of this should so unnecessary.
“National Debt is decreased by the amount of the SSTF T-bills redeemed.”
True, but it’s not a wash. Our government must pay cash to the Fund so they can pay benefits.