Worthless Government Repository

Parkersburg, WV, a sleepy little town on the Ohio River with some famous political history, is home of the Bureau of Public Debt, which is directed by Obama's Treasury Secretary, Tim Geithner.  In the olden days before the Baby Boomers began to retire, payroll deductions for Social Security were far in excess of monies required to pay our retirees. Unfortunately excess spending demands has, in the last couple of decades, been far greater than funds provided by other tax collections provided, so Congress decided to use Social Security to fund routine government operations.

Not to worry though, because the U.S has a foolproof plan to honor its commitment to fund Social Security for all qualified participants.
But to illustrate the government's commitment to repaying Social Security, the Treasury Department has been issuing special bonds that earn interest for the retirement program. The bonds are unique because they are actually printed on paper, while other government bonds exist only in electronic form.

They are stored in a three-ring binder, locked in the bottom drawer of a white metal filing cabinet in the Parkersburg offices of Bureau of Public Debt. The agency, which is part of the Treasury Department, opened offices in Parkersburg in the 1950s as part of a plan to locate important government functions away from Washington, D.C., in case of an attack during the Cold War.

One bond is worth a little more than $15.1 billion and another is valued at just under $10.7 billion. In all, the agency has about $2.5 trillion in bonds, all backed by the full faith and credit of the U.S. government. But don't bother trying to steal them; they're nonnegotiable, which means they are worthless on the open market.

This news would be disconcerting enough, were it not for the record deficits of the Obama Administration this year, expected to exceed $1.5 trillion.
This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.

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 president has responded "rationally" to this crises in our bad economy by (1) promoting a second stimulus bill, (2) pushing for government healthcare with a multi-trillion dollar price tag, (3)sponsoring Cap 'n Tax legislation to make his best buddies (and eventually himself) rich and (4) setting up the destruction of American capitalism and the American way of life.