Social Security to start cashing Uncle Sam’s IOUs

in Bank Gold economy gld Gold by admin — March 14, 2010 10:45 am | no comments

Sounds like a good time to start tapping the nest egg. Too bad the federal government already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors. In return, the Treasury Department issued a stack of IOUs — in the form of Treasury bonds — which are kept in a nondescript office building just down the street from Parkersburg’s municipal offices. Now the government will have to borrow even more money, much of it abroad, to start paying back the IOUs, and the timing couldn’t be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come. WRH permalink

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Social Security to start cashing Uncle Sam’s IOUs

Tags: already-spent back-the-ious down-the-street government other-programs over-the-years social start-tapping street timing treasury what really happened