Factcheck - on Tax Cut, Social Security and the General Fund.

[tabatha]

7. "The problem is that by following our current practice of using Social Security System income"

Letter-writer Roy M. Cantrell apparently holds the common, but mistaken, belief that “the federal government has stolen from the Social Security Trust Fund, leaving behind worthless IOU’s.”

The Social Security Trust Fund is held in treasury securities, always considered to be the safest possible investment. To quote from the original 1935 Social Security Act, “It shall be the duty of the Secretary of the Treasury to invest such portion of the amounts credited to the Account as is not, in his judgement, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States.”

This requirement has never changed. All companies and governments that hold U.S. Treasury securities list them as assets, not worthless IOUs, in their accounting.
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ThomWV, what you fail to realize is that you are spouting BS again.

"By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government. All securities held by the trust funds are "special issues" of the United States Treasury. Such securities are available only to the trust funds.

In the past, the trust funds have held marketable Treasury securities, which are available to the general public. Unlike marketable securities, special issues can be redeemed at any time at face value. Marketable securities are subject to the forces of the open market and may suffer a loss, or enjoy a gain, if sold before maturity. Investment in special issues gives the trust funds the same flexibility as holding cash."

http://www.ssa.gov/oact/ProgData/fundFAQ.html