Bush’s ‘IOU’ Remark Isn’t Worth Much

Re “President Casts Doubt on Trust Fund,” April 6: The president said “the retirement security for future generations is sitting in a filing cabinet” because a list of the Treasury bonds held in the Social Security trust fund is kept in a file cabinet, and that “there is no trust fund, just IOUs.” That is like saying that the money in my bank account doesn’t exist, it’s just a bank statement. Or that my individual retirement account is just electrons because I go online to check the balance.

I hope the Internal Revenue Service doesn’t mind that I paid my income taxes with a check, which is apparently just a worthless slip of paper.

Chad Jones

Granada Hills

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President Bush referred to the government bonds as “just IOUs.” He should be careful referring to the bonds in such a demeaning manner. These are the same bonds purchased by foreign and domestic investors who have been assured that they are supported by the “full faith and credit of the United States.”

If the bonds are not redeemable by Social Security (or any other bond-holders) when they come due, our entire financial house of cards could collapse and make 1929 look like a walk in the park.

Richard A. Hein

Fullerton

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In justifying his vague proposals for Social Security privatization, Bush has recently said that the IOUs in the Social Security trust fund are mere worthless pieces of paper.

If people believe this, they should send me their “worthless” Treasury bills, notes and bonds, along with the titles to all of the mutual fund accounts that are based on them. Thanks ahead of time!

James G. Devine

Professor of Economics

Loyola Marymount

University, Los Angeles