An alternative to popular faith
Which of the following federal agencies might go bankrupt, without a change in the law?
1. Bureau of Prisons
2. Centers for Disease Control and Prevention
3. Coast Guard
4. Central Intelligence Agency
5. Department of Justice
6. Department of State
7. Department of Labor
8. Department of Transportation
9. Department of the Air Force
10. Department of the Army
11. Department of the Navy
12. Department of the Treasury
13. Social Security Administration
14. Centers for Medicare & Medicaid Services
15. Department of Health and Human Services
Answer: It is impossible for any federal agency to go bankrupt. None ever has; none ever will. Not even during the Great Depression did any federal agency go bankrupt nor did any federal check bounce.
Then, in 1971, the federal government went off the gold standard specifically to give itself the power to create enough money to pay its bills, no matter how high.
Think about this: “‘I come to you as a managing trustee of Social Security. Today we have no assets in the trust fund. We have promises of the good faith and credit of the United States government that benefits will flow.’—Paul O’Neill, Secretary of the Treasury, June 19, 2001″ He said there is no money in the trust fund, yet it has been paying benefits. How is that possible? Because, benefits are paid by the U.S. government, not from a mythical trust fund.
Now tell me again why Social Security and Medicare might go bankrupt.
Rodger Malcolm Mitchell