Social Security

[Rajoo]

Originally Posted by nailer

Yes, but they're real bonds. The SS trust bonds are virtual.

Thank you, that explains it for me. As my close friend and CPA would often say, an accounting adjustment?

[nailer]

Originally Posted by donquixote99

A government starved for cash for some reason.

Pretty sure it would have to be Congress. Just like it would be Congress who will redeem them. Both are funding decisions and at the end of the day it's Congress, the sovereign people's representative, that funds our government.

[donquixote99]

It's in the constitution that the Treasury can't pay out anything unless there's been an appropriation law passed for it. So there do have to be appropriations from Congress. These might be multi-year if Congress chooses, I don't know. In any case, the Social Security Act specifies what must be paid to who, so the appropriations are regarded as mandatory, unless a change to the Act gets passed.