What Happens When The Government Defaults on Social Security Payments?

6 thoughts on “What Happens When The Government Defaults on Social Security Payments?”

1. I think he has it about right re 1929. Recession will hasten SS/Medicare “insolvency” and it will be clear that the Fed is printing money to fund them. It seems reasonable that will induce a real flight from the $, making its reserve currency status tenuous at best. That will be one helluva reset.

   The corrupt cancer that rules us is way too dishonest to default above board. They will do it via money printing–or even worse by CBDCs.

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   1. J. Sobran, I had a recent post that suggested the federal government will be required legally to cut social security benefits once we reach that point. Perhaps that would alleviate the problem, at least temporarily. However, I suspect it would only kick the can down the road just a bit further.

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      1. You are right about the law as written. But an element of the corrupt nature of govt will be on display before it takes place: The size of the voting bloc being affected will make Congress change it to allow borrowing the shortfall (maybe a tiny increase also in SS payments by employees and employers), and the amount of total borrowing at that point will be so great that the Fed will be monetizing most of it. Defaulting by inflating away the debt.

         At least that is my bet. The path of least resistance for the Epstein class to keep accountability to a minimum.

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         1. That seems to be an excellent bet, J. Sobran, based on all we have seen in the past.

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2. My SS payment is very small anyway. NO WORRIES (-:

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   1. I feel badly, Fred, for the many people who rely on Social Security for all of their retirement income. There will be lots of those folks…

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