Written by Jim Gries   

Hang on, before you accuse me of using inappropriate language, SOB is the acronym for a unique financial instrument created for the social security trust fund called a Special Obligation Bond. The Social Security trust fund receives one when excess retirement dollars are transferred to the general revenue fund. The SOB shows up as an asset on the Social Security trust fund balance sheet, and the transferred dollar shows up as income on the general revenue fund ledger, both masking reality. Once co-mingled with other tax receipts in the general revenue fund, the retirement dollar loses its unique identity and is treated like any other tax dollar flowing into the general revenue fund - it’s spent. In this case it’s our retirement dollars being used for something other than intended.

Now there are some who justify this process by saying the United States government has never defaulted on one financial obligation, therefore the SOBs are backed by the full faith and credit of the U.S. government, and are as good as gold. Numerous politicians, AARP, and their senior membership have peddled this fallacy for years. They would have a valid point if referring to government debt instruments purchased by outside parties. For example, when you and I present a previously purchased government issued debt instrument for redemption, it’s redeemed for its face value plus the agreed upon interest rate. The government has used our dollar, and paid us back the principal plus interest for using it; net effect in X years our original dollar investment turns into two dollars.

In the case of SOBs, they’re created by an intra governmental transaction, meaning the right hand of the government (general revenue fund) borrows from the left (SS trust fund), which creates a new interest bearing financial burden (SOB) using the very taxpayer retirement dollars that were intended to be set aside to relieve future financial burdens. Contrasted with the example above, the original retirement dollar that’s replaced with an SOB, has the opposite effect; after X years, our 2 dollar asset, is in reality a 2 dollar liability, a net loss of 4 dollars-Good as fool’s Gold!!

So here’s a challenge for AARP, and any elected representative/s, or individual/s who’ve stood by while this SOB program has turned 2.5 trillion dollars of potential Social Security trust fund assets into 2.5 trillion dollars of social security trust fund debt; a 5 TRILLION dollar net turnaround. Put your money where your mouth is, and agree to take SOBs in lieu of your government issued paychecks or monthly Social Security checks. Take your SOB down to the supermarket and offer to pay for a bag of groceries using your SOB; oh that didn’t work. How about your financial institution, they’ll surely credit your checking account when you deposit your SOB; oh they don’t want your SOB either. Well how about this, invite the grandkids over for dinner, and after a nice meal ask them for a loan offering your SOBs as collateral; oh, oh, they don’t belong to AARP. Hmm, well guess you’ve exhausted your options, and you’ll just have to get used to those SOBs showing up in your mailbox every month; after all they’re good as gold!!

Finally if this SOB program is so great, why not funnel all tax receipts through the Social Security trust fund; we could increase those SOB assets by over 3 trillion dollars this year alone. It’s time for a real “generations working together” solution; www.socialsecuritysolution.org ; You may contact the author of this article at This e-mail address is being protected from spambots. You need JavaScript enabled to view it