It never ceases to amaze me how otherwise-sensible journalists and policy wonks can’t seem to understand the basic finances of government trust funds.

The New York Times is reporting today that because of recessionary effects on tax revenues and early retirement, this is the first year that Social Security will pay out more in benefits than it receives in payroll taxes. This tipping point wasn’t expected until 2016. Defenders of the status quo hastened to assert that the operating deficit doesn’t really matter because Social Security still has its massive trust fund of federal treasuries to draw on for many years to come. Surely no one doubts the soundness of federal debt, they say.

Apart from the real reasons to be concerned about hyperinflation and the dollar in the future, the creditworthiness of the federal government isn’t the point. In true government pension funds, such as those operated by state governments, the portfolio is made up of claims on the income of other institutions. If states filled their pension plans with their own state bonds, they’d be in big fiscal and legal trouble.

Think about it this way. Even if you have an excellent credit history and stable employment, you can’t increase your net worth by writing yourself a check. And if you store IOUs to yourself in a lock box, and lose your job, their existence won’t help you pay a single bill.