No, it’s accounting fraud plain and simple.
Let’s say you have $100,000 in the bank. You write yourself an IOU for $100,000 and go have a really nice time spending the money.
The IOU is worthless. Saying “I’ve always paid back every dime I ever borrowed.” is a waste of breath. That in no way shape or form matters in the least. People get really hung up on this point but it has no real meaning at all.
The $100,000 is gone. It is no more. It is spent. The IOU is worthless.
Repeat over and over: An IOU from yourself to yourself is always worthless.
This is exactly what has happened with the SS trust fund. The money was spent. It is gone. No more. It was poured in Star Wars, a 600 ship navy, two bomber systems, etc.
The T-notes are worthless for a simple reason: It’s an IOU from an entity to itself.
The SSA could have just kept the money in a simple interest-free account. It wouldn’t have made money, but then the dollars would still be in the account.
Other investments like stocks, land, etc. would have been possible but subject to all sorts of shady dealings.
Many people of all sorts of political leanings have pointed this out over the years. Daniel Patrick Moynihan crusaded against spending the SS money when he was a senator. Many others since then.
Face facts: Taxes were raised to build the SS fund. The money was spent. Taxes will be raised to put the money back.
If the money is “still there” somewhere why do we have to pay it twice?