> So the next time someone tells you Social Security is going broke just remind them it is really not broke. It is just the U.S. government defaulting on a loan.
You are trying to conflate where the SS trust fund is invested with projections on its future growth and spending. Those are two totally different things!
Let's make the analogy with a personal investment. Suppose you put 10K in an investment that earns 4% annually and you draw 5% of the investment balance every year. At some point in time, that investment will go to zero because you're spending money faster than it is coming in. It doesn't matter WHERE you have invested the money. You can put it in a Fidelity, T. Rowe Price or Vanguard fund, each with a net return of 4% and the result will be EXACTLY the same.
Now, this assumes that the investment firm doesn't go belly up and that your funds aren't embezzled by a crooked broker. But that is a different scenario. The reason the SS trust fund is invested in US Treasury securities is that those are the SAFEST INVESTMENTS ON THE PLANET. Which of course means they have a very low rate of return. Back before the dot-com bust and the financial crisis, folks were talking about putting SS funds in the stock market. NOBODY talks about that now.
You claim the US is "defaulting on a loan". Please give a specific example of a case where the US Treasury has defaulted on a loan. It has never happened, although our beloved president has certainly suggested it's a good idea.
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