Today Chimpy eschewed the cheering hand-picked crowds and chose instead to speak to a bunch of Southern politicians about destroying Social Security. It was really the same speech he has given for the past two or three months, including the obligatory denial that Treasury Bonds are backed by the full faith and credit of the United States of America.
There is no vault holding your cash, waiting for you to retire. Instead, because we spend Social Security taxes on current retirees and other government programs, all that is left over in the so-called security trust is a bunch of filing cabinets with IOUs in them.
As a matter of fact, I went to West Virginia the other day to look at the filing cabinets, to make sure the IOUs were there — paper. And it’s there. And it’s, frankly, not a very encouraging sight.
I’ve been searching unsuccessfully for a good image of one of those “IOUs”, this is as close as I have been able to come.
Does this look like an IOU, a worhtless piece of paper, to you?
This is an example of a war bond. You see, when Franklin Roosevelt was leading this country in a war of necessity he chose to fund a portion of the enormous expense by selling war bonds to the public. Contrast Roosevelt’s actions with those of our current president, who chose to fight a vanity war funded by money he borrowed from both future generations and the Social Security trust fund, while simultaneously pushing tax cuts for the rich (tax cuts that resulted in a $28,846 savings for Bush and a $81,336 savings for Dick Cheney).
We use paper IOUs for debts public and private all the time. And, to this point in time, none have been more reliable than those issued by the U.S. Treasury. I don’t think that even benighted Bush-backers are stupid enough to buy his “worthless paper” line.