[Drill Thrawl]

And if that is correct wouldn't failure to pay the SS IOUs be a default?

You are technically correct but it is only really a default if it is to foreign gubments. People on social security, much like GM and Chrysler bond holders are screwed.

[jpsb]

Hmmm, while I understand what you are saying I am inclined not to believe it. A T-bill is a T-bill is a T-bill, foolish me thinks it should not matter who the owner of the T-Bill is. But then I am just a simple man not an ivy league educated D.C. bureaucrat (Marxist).