Quote Originally Posted by Bos Mutus View Post
It is my understanding that the social security program is prohibited from borrowing money.
I didn't say the social security program is going to borrow money. I said: Under current law, when the social security program goes into an annual cash deficit, the government has to seek alternate funding beyond the payroll taxes dedicated to the program to cover the shortfall.

Quote Originally Posted by Bos Mutus View Post
When the SS program goes into an annual cash deficit...it reaches into it's own trust fund to make up the difference. That trust fund is currently somewhere near $3 Trillion...and we are currently still running a surplus (adding money to it)
The trust fund is currently an IOU. These trust fund balances are available to finance future benefit payments and other Trust Fund expenditures, but only in a bookkeeping sense. They do not consist of real economic assets that can be drawn down in the future to fund benefits. Instead, they are claims on the Treasury that, when redeemed, will have to be financed by raising taxes, borrowing from the public, or reducing benefits or other expenditures. The existence of large Trust Fund balances, therefore, does not, by itself, have any impact on the Government’s ability to pay benefits. George Bush said, "Some in our country think that Social Security is a trust fund – in other words, there's a pile of money being accumulated. That's just simply not true. The money – payroll taxes going into the Social Security are spent. They're spent on benefits and they're spent on government programs. There is no trust"
Quote Originally Posted by Bos Mutus View Post
It's "gone" in the same way that money you put in the bank is "gone"...in the same way that if you purchased a savings bond it's "gone"...in the same way that if you purchased stock in a company it's "gone"
You are really far down the rabbit hole today. Money that has been spent is not the same as money in a bank account or money invested in stock.

The federal government has already spent (squandered?) the money in the social security trust fund. It is gone. The money is gone. The federal government will have to get that $2.7 trillion back by raising taxes or by borrowing from the public (or the Chinese).