With President Obama claiming that if our debt limit is not increased by Congress, it may force the government to stop payment of Social Security checks, the public, and in particular those dependent on these monthly checks, are a bit confused about how the Social Security System is financed. The truth is that the government does not have to go out and borrow money in order to pay Social Security recipients. Those payments are covered by present receipts of FICA taxes. So the idea that Social Security payments are dependent on borrowed money is false. …………………..In other words. The government IOUs are intrinsically worthless.