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Rayvt explains,

No, it is quite accurate. The government is lending money to itself. More specifically, the SSA is "lending" money to the Treasury Dept, who gives the SSA an IOU promising to pay it back. Just like your left pocket lending money to your right pocket. Unless you believe that the SSA and the US General Fund are not two divisions of the same entity?

How is the Treasury debt owed to the Social Security fund different from the Treasury debt owed to the Chinese, Saudis, and Koreans?

If anything it's probably more secure since I imagine any politician who tried to cut Social Security to keep the Chinese and Saudis whole would be quickly run out of town by an angry band of senior citizens.

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