Wednesday, January 19, 2005

Social Security again

One thing that's important is to realize that Social Security is an insurance program. Though the bulk of its payments go to retirees, there also a good chunk that go to the disabled, the widowed, etc. It's your money, invested in US bonds, ostensibly the most secure investments in the world.

I'm not the first person to say this, but.....if, like some Conservatives claim, the US just plans to default on the bonds in which the Trust Fund has invested, then what does that mean for the rest of the countries that own portions of the US debt?

Excuse the crudity, but imagine China holding our collective nuts in a trillion dollar vise grip.