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Washington, DC -- Millions of Americans have invested their savings in government bonds, yet President Bush continues to contradict the Social Security Administration and suggest they are worthless "IOUs" from the government. The truth is, according to the Treasury Department, President Bush will pay nearly $322 billion in interest on the public debt this year alone. That includes payments to China and Japan for the $896.1 billion in U.S. government bonds they own. But now, the President has declared the American-owned bonds in the Social Security Trust Fund worthless "IOUs."

"In his failing attempt to sell his scheme to privatize Social Security, George Bush is misleading the American people," said DNC Communications Director Karen Finney. "How can he suggest that millions of hard working Americans who own government bonds in the Social Security Trust Fund won't be paid back? If that's really the policy of Washington Republicans, it's no surprise that public support for their extreme agenda is rapidly falling."

Bush: American-Owned Bonds Worthless "IOUs"

"Using a government filing cabinet as a prop, President Bush on Tuesday played to fears that the Social Security Trust Fund is little more than a stack of worthless IOUs.

"'There is no trust fund, just IOUs that I saw firsthand, that future generations will pay,' Bush said after inspecting the storage site." [Knight Ridder, 4/5/05]

SSA: Bonds Have "Full Faith And Credit" of USA

"'Far from being ‘worthless IOUs,' the investments held by the trust funds are backed by the full faith and credit of the U.S. Government. The government has always repaid Social Security, with interest,' the agency says. 'The special-issue securities are, therefore, just as safe as U.S. Savings Bonds or other financial instruments of the federal government.'" [Knight Ridder, 4/5/05]