NU Online News Service, Jan. 3, 2005, 4:22 p.m. EST
A Winter Haven, Fla., gadfly says the Social Security trust fund really is empty.[@@]
AARP, Washington, recently argued that the Social Security trust fund is in good shape because it holds $1.5 trillion in interest-bearing U.S. Treasury bonds that are similar to the Treasury securities held in private pension funds.
But Allen W. Smith, author of “The Looting of Social Security: How the Government is Draining America’s Retirement Account,” argues that the securities that the trust fund holds are “IOUs” that are not like ordinary marketable Treasury bonds.