Unfortunately the bonds sold in the last decade by the bankers to investors offered for a small premium per bond, or hedge funds to investors leveraged in T bills also offered loss insurance to the investor. Banks and hedge funds assumed gov T bills will never default, thus never backed the policies with sufficient cash reserves. Thus a temporary default means every bond holder who owned the insurance can exercise their insurance and demand the banks and hedge funds payments to cover the losses. Can you say Wall Street bank and hedge fund meltdown??!!! That is the link between the money in Soc Sec trust fund loaned out and our deficit spending financed by T bills sold by gov to banks/hedge funds and then to investors. Treasury officials know this, senior Senators know this, financial and corporate CEO’s know this, question is does the Tea Party know this??? Only way out is to nullify the financial products created by the Wall Street bankers and hedge funds that hold our financial system hostage.
My understanding is that the Social Security loans are not made in anything as specific as a t-Bill ~ that they are just journal entry notations.