On Jun 22, 2010, at 10:38 PM, socialismorbarbarism wrote:
> Has the the US Government de facto
> defaulted on its bond obligations to Social Security?
The Treasury will either have to pay off the T-bonds held by the SS Trust Fund using new taxes, money repurposed from elsewhere, or freshly borrowed. In any case, one branch of the gov can't lend to another in any meaningful way. The SS Trust Funds assets are pure money of the mind.
Doug