The Learning Curve

New tricks for an old dog.

Unreal debt

The U. S. Treasury has borrowed about $2.5 Trillion from the Social Security Trust Fund. It’s a little bit abstract, but think about it as borrowing money from your parents. The U. S. Treasury has also borrowed about $1 Trillion from China, which has a million strong army and atomic weapons. Think about this as like borrowing money from the Mob.

Some think of the Treasury Notes held by the Social Security Trust Fund as meaningless accounting entries, but loans from the Chinese with similar documentation seem much more substantial. Why is this? Is it based upon some Oedipal urge to cheat your parents? And, does it suggest that the cure for perceived Social Security solvency issues is to arm the Social Security Trust fund with atomic weapons? Repay or else.

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Written by Tom Fox

07/22/2011 at 9:43 am

Posted in Politics

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