Social Security Going Bankrupt?

Looks like the government figured out a way to make not everyone go broke, they will just decrease the benefits by a certain percentage every year funds run short.

Certainly didn't expect so many living into their 80's!

And here's the kicker folks . . . the "Trust Fund" IOUs are money the federal government owes to itself. The federal government was both the lender and the lendee. To redeem that IOU, since the federal government is operating at a deficit, requires that the federal government sell a Treasury Note or other debt instrument to "pay back" Social Security, which means that the debt is going from internal ownership to external ownership.

And I can all but guarantee you that the interest they have to pay to an external owner of the debt is more than they were paying internally, which also means that the debt has to be refinanced, from time to time, at current rates, which is why servicing the federal debt now costs more than the Department of Defense in the federal budget every year. Most of that increase is refinanced debt, at current rates, when the initial cost to borrow that money was next to nothing. As more and more of the debt that was incurred, or refinanced, in the 0.5% interest days comes up for renewal, the cost of refinancing that debt has risen to over 4%, more than 8x the rate paid when it was last refinanced or incurred 10 years ago.