There is a superb article on U.S. Social Security by Allan Sloan in the Sunday, Aug 2 Washington Post. www.washingtonpost.com/wp-dyn/content/article/2009/07/31/AR2009073104214.html Sloan points out that the treasuries in the Trust Fund will have to start being redeemed for cash very soon to prevent a cash flow problem. But since Treasury has no money to redeem them they will have to borrow it in the bond market. More government borrowing on the near horizon. Let's hope our Asian buddies will step up when we need them.
Bumping this because it is an especially well written article that many ET'ers will want to read. There may be implications for the bond market.