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Geithner: The Entitlements Shortfall Is Coming Sooner Than You Think
The Business Insider ^ | 8-5-2010 | Gus Lubin

Posted on 08/05/2010 9:31:11 AM PDT by blam

Geithner: The Entitlements Shortfall Is Coming Sooner Than You Think

Gus Lubin
Aug. 5, 2010, 11:54 AM

. Geithner's big report on entitlement programs makes it official. A long-term deficit arrives for Social Security in 2016 and for Medicare in 2017.

The new timeline is worse than last year's report, which predicted shortfalls in 2017 and 2019.

The report is light on details of how they would cover the shortfall. But as Timmy made clear early this week, new taxes are coming:

The drawdown of Social Security and HI Trust Fund reserves and the general revenue transfers into SMI will result in mounting pressure on the Federal budget. In fact, pressure is already evident. For the third consecutive year, a “Medicare funding warning” is being triggered, signaling that non-dedicated sources of revenues—primarily general revenues— will soon account for more than 45 percent of Medicare’s outlays. A Presidential proposal will be needed in response to the latest warning.

Actually, the Social Security was already running a deficit during the financial crisis. The program will hit positive for a few years and then, thanks to demographic issues, go red for the rest of your lifetime.

[snip]

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: entitlements; medicare; notaxes4dnc; notaxes4geithner; socialsecurity; taxcheat; taxcheatengineering
Buy more ammo?
1 posted on 08/05/2010 9:31:15 AM PDT by blam
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To: blam

The drawdown of Social Security and HI Trust Fund reserves

sigh......


2 posted on 08/05/2010 9:32:32 AM PDT by DManA
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To: blam

Go get it while you can.


3 posted on 08/05/2010 9:33:19 AM PDT by jospehm20
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To: blam

I got a call from an alleged market research firm doing work for the Treasury on when folks of a certain age planned to start tapping into SS. I told them I don’t support Little Timmy in ANYTHING he wants - end of discussion.


4 posted on 08/05/2010 9:34:02 AM PDT by Paladin2
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To: blam; All
George W. Bush said this in January of 2005, and he was mocked by Hussein and his party!

Also: to fix this problem, we should declare a moratorium on all entitlement programs!

5 posted on 08/05/2010 9:35:04 AM PDT by Recovering_Democrat
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To: DManA

You are joking right? There is no trust fund.


6 posted on 08/05/2010 9:35:21 AM PDT by misterrob (Thug Life....now showing at a White House near you....)
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To: blam
Geeee Timmy... I guess you could always have your treasury issue bonds and have the Federal Reserve buy them. Then you can use the “money” to fund the deficit. Under this system, the shortfall should just disappear... (note to readers... I'm being sarcastic here...)
7 posted on 08/05/2010 9:36:24 AM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: misterrob

That’s why I’m sighing. They are still posturing as if there is a fund.


8 posted on 08/05/2010 9:36:31 AM PDT by DManA
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To: Recovering_Democrat

GWB didn’t get any support from his own party on SSI reform.


9 posted on 08/05/2010 9:37:04 AM PDT by DManA
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To: DManA

You got that right. We’ve gotta fix that problem, too. But the fury of the Demon-rats was the biggest obstacle.


10 posted on 08/05/2010 9:38:03 AM PDT by Recovering_Democrat
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To: Recovering_Democrat

Yes. The republicans were terrified about getting demagogued by the democrats. Can’t afford timidity anymore.


11 posted on 08/05/2010 9:39:28 AM PDT by DManA
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To: DManA

There are no reserves. SS and HI (Medicare Part A) are pay as you go systems. Any “surplus” is put into the General Fund and Treasury deposits IOUs in the form of non-market T-bills into the trust funds, which represent an unfunded liability.


12 posted on 08/05/2010 9:41:37 AM PDT by kabar
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To: blam

Laugh at Alex Jones and company all you want, they have laid out this blueprint.


13 posted on 08/05/2010 9:43:06 AM PDT by riri
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To: blam

The long term ss deficit may be coming in 2016, but the short term ss deficit is already here and there is no prospect that it will go away between now and 2016.


14 posted on 08/05/2010 9:47:44 AM PDT by Brilliant
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To: blam

Let’s see if I’ve got it right.

There is no money in the trust fund, only a bunch of IOUs from the U.S. Gov’t, which has been borrowing from the trust fund for decades. Now, the Gov’t is running a deficit, so it’s selling Treasury bonds to make up for the money it’s spending that it doesn’t have. In order to keep interest rates low on the Treasury bonds, the Federal Reserve has been buying the T-Bonds. The Fed Reserve is actually broke itself, and has gotten huge infusions of cash from the Fed Gov’t, which means the Fed Gov’t is actually financing the deficit by buying the T-bonds with it’s own money which it doesn’t have.

Well, I feel better. I’m sure the trust fund will be perfectly safe.


15 posted on 08/05/2010 9:48:38 AM PDT by Stevenc131
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To: Recovering_Democrat

Good point.


16 posted on 08/05/2010 9:54:21 AM PDT by cvq3842
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To: Stevenc131

Think of this way: You fill a bucket at the deep end of the pool, then go to the shallow end and pour in the water to make the shallow end deeper.....or

You’re drunk, and you drink more to get sober....or

You’re drilling holes in the bottom of the boat to let the water out quicker.

The Obama White House must adore these ideas.


17 posted on 08/05/2010 9:58:27 AM PDT by RexBeach ("Duty is ours; consequences are God's." Thomas "Stonewall" Jackson)
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To: blam; All
A reminder to seniors now on social security and others nearing retirement!

This came out before Commiecare was shoved down our throats!


18 posted on 08/05/2010 9:59:09 AM PDT by SloopJohnB (In a time of universal deceit, telling the truth is a revolutionary act ~~ George Orwell)
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To: blam

“Timmy made clear early this week, new taxes are coming”

Oh...like those pesky taxes you can’t figure out how to pay?


19 posted on 08/05/2010 10:07:00 AM PDT by WKUHilltopper (Fix bayonets!)
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To: blam

So the Republican congressmen who voted against this socialist boondoggle were right in saying that Social Security would go broke. Someone should publish their names and recognize them for their foresight and good judgment.

We certainly do not owe Democrats a Social Security bailout for their ponzi scheme, designed to buy the votes of the elderly with money taken from their children and grandchildren.


20 posted on 08/05/2010 10:12:26 AM PDT by kittymyrib
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To: DManA
the totality of govt pensions is a far, far more dangerous entity...

SS....they could shelve benefits anytime they want or make the 20yrs work to age 80 or not let us start collecting what we put in until age 80....

but the govt pensions at all levels.....sacred cow...all of them...

21 posted on 08/05/2010 10:19:43 AM PDT by cherry
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To: Recovering_Democrat
many people are not govt empolyees and get NO pension whatsoever.....like me....

SS is VITAL to people like me....

index it if you have too....there is no reason why some people get mulitple govt pensions and SS while others struggle along with SS alone...

index it....I don't like it....but there probably is no other way...

22 posted on 08/05/2010 10:22:53 AM PDT by cherry
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To: blam
Here is the 2010 Trustees Report. It is filled with propaganda about the anticipated benefits of Obamacare. I hope that the Reps tear it apart. It is nothing more than polishing a turd.
23 posted on 08/05/2010 10:24:12 AM PDT by kabar
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To: Stevenc131

Actually, it is worse than that - the SS Trust fund actually consists of paper bonds stored in a file cabinet in WV.

Reichstag fire, here we come...


24 posted on 08/05/2010 10:24:53 AM PDT by patton (Obama has replaced "Res Publica" with "Quod licet Jovi non licet bovi.")
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To: blam

No, no, no. Can’t be. The new health care reform is supposed to save all of this and make the government sound!


25 posted on 08/05/2010 10:29:00 AM PDT by keepitreal ( Don't tread on me.)
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To: patton
...consists of paper bonds stored in a file cabinet CARDBOARD BOX in WV....
26 posted on 08/05/2010 10:31:59 AM PDT by verity
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To: DManA

You can always tell when someone is an AARP member.
That’s the group still believing in the “trust fund”


27 posted on 08/05/2010 10:32:45 AM PDT by nascarnation
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To: verity

LOL - yeah. Termites - we got TERMITES...

Poof. Trust fund gone. MUST RAISE TAXES!


28 posted on 08/05/2010 10:35:33 AM PDT by patton (Obama has replaced "Res Publica" with "Quod licet Jovi non licet bovi.")
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To: blam

The wizard Geithner thinks he’s telling us something new. Bush tried to tackle these entitlements in 2006 but Pelosi and her Marxist Democrat party blocked the reform. So they created this mess or at leas made the mess even worse. The first solution is to reduce spending, downsize government by at least 50 percent.


29 posted on 08/05/2010 12:12:59 PM PDT by orinoco
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To: kabar

I had no idea my post was so ambiguous. I’ve written what you posted so many times I’m weary. Sigh.


30 posted on 08/05/2010 12:20:14 PM PDT by DManA
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To: Brilliant

I retire in 2016.

But I never expected to collect SS and have planned accordingly.


31 posted on 08/05/2010 12:34:35 PM PDT by RadiationRomeo (Step into my mind and glimpse the madness that is me)
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