"One calls a US Government bond, sold around the world every day, a worthless IOU. It is a worthless IOU only if the full faith and credit of the US is somehow good for bonds issued to China but worthless for bonds issued to the Social Security Trust Fund."
The bonds held in the social security trust fund are in a distinct category, and those particular bonds cannot be sold around the world in their present state because they have already been depleted. Their purchase price has already been redistributed to current retirees and to general funds. They only represent a lien on future wealth in their present state- they are, truly, IOU's, and not containers of savings. They are not identical in status to the bonds held by our foreign creditors. They are loans the government has written to itself.
It's another fractional reserve scam. They have cloned the bonds, put the real value into the hands of current retirees, and put a facsimile in the trust fund.
To put it simply, they're empty gasoline cans. They say 'Five Gallons' on the side, but they're empty. The gasoline is in the tanks of present retirees, all five gallons of it. The government is pointing at those gas cans and telling those approaching retirees, "Look, you have gas waiting for you!", but no- those cans will not be filled until future workers are tapped to pay for future benefits.
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