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CBO: Social Security Now Officially Broke (Obamanomics)
National Review ^ | 1/26/11 | kevin Williamson

Posted on 01/26/2011 12:06:02 PM PST by pissant

Today’s CBO report has some bad news about the deficit. But CBO has some really, really bad news about Social Security: It’s officially broke.

The CBO’s revenue/expenditure estimates now place the program in permanent deficit. There had been some hope that payroll taxes would recover sufficiently post-recession to put the program back into the black (the theoretical black) for at least a few more years, putting off the day of reckoning for an election cycle or more. No more: The new CBO estimates put Social Security in the red for as far as the eye can see.

But there’s a bit of camouflage attached: If you include the “interest” that the federal government “owes” the fictitious Social Security “trust fund,” then the program is in the black. Which is to say, if you think that borrowing another $1 trillion from the bond market to shift money from one government account to another government account makes the nation $1 trillion richer, then everything’s hunky-dory. But if you compare the program’s tax income to its benefit outlays, without the “interest” owed, as CBO does, what you get is deficits from this year forward to 2021 of $45 billion, $30 billion, $28 billion, $30 billion, $31 billion, $33 billion, $44 billion, $59 billion, $77 billion, $98 billion, and $118 billion — by my always-suspect English-major math, about six-tenths of a trillion dollars in the hole.

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


TOPICS: Government
KEYWORDS: bankrupt; broke; larrysinclairslover; lockbox; obama; obamanomics; security; social; socialsecurity; welfare
Wait, all they have to do is dig into that trust fund that has been building up over the decades.....
1 posted on 01/26/2011 12:06:05 PM PST by pissant
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To: pissant

No worries mate, just find the key to the lockbox


2 posted on 01/26/2011 12:07:26 PM PST by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
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To: pissant

Good - now come up with a plan to phase it out over the next 25 years for everyone currently under 62 years of age and drive a stake through its heart.


3 posted on 01/26/2011 12:08:49 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: pissant

What you do is, form a corporation and have this corporation assume all of the national debt and then have it declare bankruptcy.

simple.

//sarcasm


4 posted on 01/26/2011 12:08:59 PM PST by GeronL (http://www.stink-eye.net/forum/index.php)
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To: pissant

But, but, Harry Reid was on Meet The Press like 2 weeks ago saying this would never happen...


5 posted on 01/26/2011 12:09:53 PM PST by jpf (http://flood-mybigmouth.blogspot.com/)
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To: pissant

The govt will do what it does best....just print more money.


6 posted on 01/26/2011 12:11:19 PM PST by diamond6 (Buy American!!!! Stop supporting China's economy, support the USA!)
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To: DuncanWaring

Before you do that, pay back all the money these people have put into the system, with interest.


7 posted on 01/26/2011 12:11:23 PM PST by RC2
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To: pissant

Where’s Harry Reid to make the “bold” assertion there’s nothing wrong with Social Security... those words that he used when Bush wanted to cushion the fall by allowing recipients the option of privately investing up to 2%?


8 posted on 01/26/2011 12:12:01 PM PST by ScottinVA (The West needs to act NOW to aggressively treat its metastasizing islaminoma!)
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To: pissant

All they need to do is pay back the $2.5 Trillion they borrowed from the fund.


9 posted on 01/26/2011 12:12:15 PM PST by RC2
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To: pissant
Wait, all they have to do is dig into that trust fund that has been building up over the decades.....

It's in the lockbox somewhere sharing space with a certain, celebrated birth certificate.

10 posted on 01/26/2011 12:13:24 PM PST by ScottinVA (The West needs to act NOW to aggressively treat its metastasizing islaminoma!)
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To: DuncanWaring

“now come up with a plan to phase it out over the next 25 years for everyone currently under 62 years of age.”

Just give me back what I paid and let me worry about it.


11 posted on 01/26/2011 12:13:34 PM PST by MPJackal ("From my cold dead hands.")
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To: RC2

Dream on.

That money’s as long-gone as Bernie Madoff’s money.

Including the hundreds of thousands I’ve put into it (Social Security).


12 posted on 01/26/2011 12:13:39 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: RC2

All they need to do is pay back the $2.5 Trillion they borrowed from the fund.

You mean the $$$ they stole via a ponzi scheme?


13 posted on 01/26/2011 12:14:29 PM PST by taxtruth (Don't end the fed,jail the fed!)
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To: MPJackal
Just give me back what I paid and let me worry about it.

You might as well say that to Bernie Madoff.

14 posted on 01/26/2011 12:15:12 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: pissant
I've got an great idea!

SS can just issue bonds to cover the ever-growing deficits and the Fed can buy them with printed money!

Problem solved!

Now wasn't that easy?

15 posted on 01/26/2011 12:16:52 PM PST by mojito
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To: DuncanWaring

If they would give back the IOU’s, we could go to McDonalds and get a Number 2. (With a coke). That being said, if people don’t start bringing up the IOU’s they’ll continue to rip people off. The people of this country need to stand up and say “Wait a minute, you guys that stole the money, are off the payroll until it’s returned.”


16 posted on 01/26/2011 12:17:10 PM PST by RC2
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To: pissant

Just give me a few acres of Yellowstone and I’ll call it even.


17 posted on 01/26/2011 12:20:04 PM PST by Nachoman (Wisdom is learned, cynicism is earned.)
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To: taxtruth

I don’t care what name we put on it. The money was taken from the people, against their wishes.


18 posted on 01/26/2011 12:21:35 PM PST by RC2
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To: pissant
Damn I was sposed to get the first of my money back on April Fools Day. Perfect. I applied early cause they lowered the pay amount 3 times in the last six months and 40 bucks less than the report I just got in January said i would start getting back. April Fools Suckers. I will trade it and medicare for all laws passed since 1950 to be immediately repealed and all the Agencies terminated.
19 posted on 01/26/2011 12:22:45 PM PST by screaminsunshine (Surfers Rule)
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To: mojito

Is that QE 26?


20 posted on 01/26/2011 12:23:51 PM PST by screaminsunshine (Surfers Rule)
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To: pissant
Remember all those ‘surplus’ years in the ‘90s? It was only a surplus due to intra-governmental transfers...a fancy term for borrowing from the SS trust fund to put into the general fund. Receipts never exceeded expenditures...it was all smoke and mirrors.

But, you see, intra-governmental transfers aren't counted as borrowing. Why? Because a bunch of accountants said so.

21 posted on 01/26/2011 12:29:00 PM PST by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: pissant
FICA “Contributions” from me and my employer(s) total 15% of my income for the past fifty years. That was touted as an insurance policy for my old age. Hell, Al Gore even talked about how he would protect the ‘lockbox’. Was Al Gore lying to me? That is a rhetorical question, hell yes he would and did. Them B*****ds in Washington district of Corruption STOLE it.
22 posted on 01/26/2011 12:34:53 PM PST by Tupelo
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To: pissant

What are we talking about here, ...illions? That’s nothing for creative economists and liberal politicians. A little stimulus here, and a bailout there, and everything is peachy. Stop thinking about it as cash. It’s just numbers that don’t mean anything.


23 posted on 01/26/2011 12:36:15 PM PST by pallis
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To: ScottinVA

Check with Dingell-Norwood


24 posted on 01/26/2011 12:36:27 PM PST by pissant ((Bachmann 2012 - Freepmail to get on/off PING list))
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


25 posted on 01/26/2011 12:36:53 PM PST by Nachum (The complete Obama list at www.nachumlist.com)
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To: pissant; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; calcowgirl; Gilbo_3; NFHale; ...
RE :”The CBO’s revenue/expenditure estimates now place the program in permanent deficit. There had been some hope that payroll taxes would recover sufficiently post-recession to put the program back into the black (the theoretical black) for at least a few more years, putting off the day of reckoning for an election cycle or more. No more: The new CBO estimates put Social Security in the red for as far as the eye can see.

But there’s a bit of camouflage attached: If you include the “interest” that the federal government “owes” the fictitious Social Security “trust fund,” then the program is in the black. Which is to say, if you think that borrowing another $1 trillion from the bond market to shift money from one government account to another government account makes the nation $1 trillion richer, then everything’s hunky-dory. But if you compare the program’s tax income to its benefit outlays, without the “interest” owed, as CBO does, what you get is deficits from this year forward to 2021 of $45 billion, $30 billion, $28 billion, $30 billion, $31 billion, $33 billion, $44 billion, $59 billion, $77 billion, $98 billion, and $118 billion — by my always-suspect English-major math, about six-tenths of a trillion dollars in the hole.

It's about time. Now Republicans need to RAM the CBO numbers down Democrats throat since they LOVE the CBO. Problem is:Republicans seem terrified to tell voters the truth: that THERE IS NO SS TRUST FUND.

How could it be the black? they just cut FICA taxes!

26 posted on 01/26/2011 12:38:56 PM PST by sickoflibs ("It's not the taxes, the redistribution is the federal spending=tax delayed")
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To: jpf

“But, but, Harry Reid was on Meet The Press like 2 weeks ago saying this would never happen...”

He meant it would never happen to HIM. He’s not in the SS Ponzi scheme; it is not for the Ruling Class, only for the poor schlubs who pay their/Harry’s salaries.


27 posted on 01/26/2011 12:49:18 PM PST by Fantasywriter
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To: sickoflibs

just one time, i wish one of the 535 would stand up and speak the truth [besides ron paul]...


28 posted on 01/26/2011 12:50:34 PM PST by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
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To: Nachoman
Just give me a few acres of Yellowstone and I’ll call it even.

I like that idea!

I'd even settle for a waiver on all future property taxes on the land I already own.
29 posted on 01/26/2011 12:51:45 PM PST by Ellendra (Profanity is the mark of a conversational cripple.)
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To: pissant

All we have to do is to find that lock box.


30 posted on 01/26/2011 12:52:08 PM PST by monocle
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To: pissant

I have no expectations of receiving what I’ve been promised... it’s long gone.

On April 5, 2005, after visiting the Bureau of Public Debt in Parkersburg, West Virginia, President Bush said:

“I have just come from the Bureau of Public Debt. ... I went there because I’m trying to make a point about the Social Security trust. You see, a lot of people in America think there’s a trust, in this sense — that we take your money through payroll taxes and then we hold it for you, and then when you retire, we give it back to you. But that’s not the way it works.
“There is no ‘trust fund,’ just IOUs that I saw firsthand, that future generations will pay — will pay for either in higher taxes, or reduced benefits, or cuts to other critical government programs.”

Social security began in 1937 - people could retire and receive their SS “benefit” at age 65. Any guess to what the avg life expectancy was in 1935 - when SS was signed into law? 63 for a woman, 59.5 for a man. In all this time, the age to collect hasn’t changed. The avg life expectancy now is close to 80. The number of payers into SS has dropped from 16 down to 3 for each person collecting.

How can anyone realistically expect the system to remain solvent?

Madoff only wishes his ponzi scheme was as good a social security.


31 posted on 01/26/2011 12:58:42 PM PST by griswold3 (We defend conservatism by our very way of life.)
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To: mojito

Don’t give them any idea’s remember the Fed is already monetizing our debt and with their new accounting rules that will come back to bite you doubly hard.


32 posted on 01/26/2011 12:59:01 PM PST by FromLori (FromLori">)
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To: Bullish; CJ Wolf; houeto; Quix; B4Ranch; Whenifhow; Silentgypsy; blam; FromLori; Lurker; ...
Sarah-Palin-has-failed-to-prevent-the-bankrupting-of-Social-Security ping.

"Economic Holocaust" ping.

Increasing volume ping list watching the slow motion Economic Holocaust.

FReepmail me if you want on or off
The Comedian's "Economic Holocaust" ping list...


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

33 posted on 01/26/2011 1:01:05 PM PST by The Comedian (Obama is just the cherry on top of the $hit sundae of fraud the democrats have become.)
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To: RC2

Throw this $6.3 Trillion IOU in there too.

http://www.bloomberg.com/news/2010-02-03/obama-s-6-3-trillion-scam-is-america-s-shame-jonathan-weil.html


34 posted on 01/26/2011 1:01:14 PM PST by FromLori (FromLori">)
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To: The Comedian

Hmmmmm

sooo I wonder how many more months of the rather small sum are possible. LOL.


35 posted on 01/26/2011 1:08:25 PM PST by Quix (Times are a changin' INSURE you have believed in your heart & confessed Jesus as Lord Come NtheFlesh)
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To: RC2

>>I don’t care what name we put on it. The money was taken from the people, against their wishes.<<

Under threat of imprisonment is more accurate. Loss of Liberty.


36 posted on 01/26/2011 1:10:06 PM PST by B4Ranch (Do NOT remain seated until this ride comes to a full and complete stop! We're going the wrong way!)
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To: pissant

NOW is the time to float the retirement age without limit annually to maintain year-to-year break-even solvency.

Let the geezers fight to cut the SSI disability abuse, so they can retire sooner.


37 posted on 01/26/2011 1:14:39 PM PST by Atlas Sneezed ("If you touch my junk, I'm gonna have you arrested.")
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To: Quix
sooo I wonder how many more months of the rather small sum are possible.

Prepare for a life without money, bro. I am.


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

38 posted on 01/26/2011 1:34:11 PM PST by The Comedian (Obama is just the cherry on top of the $hit sundae of fraud the democrats have become.)
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To: The Comedian

Doing what I can in that department!

LUB


39 posted on 01/26/2011 1:35:51 PM PST by Quix (Times are a changin' INSURE you have believed in your heart & confessed Jesus as Lord Come NtheFlesh)
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Comment #40 Removed by Moderator

Comment #41 Removed by Moderator

To: pissant

Geee- Sharron Angle was right & Dirty Harry Reid was wrong.

I hope the Nevada Republicans jump Harry for his statements during the campaign.

He kept saying ‘Social Security isn’t going to have any problems until about 2035, & we should all stop worrying about it”.

Now, only 26 days into 2011 & NObama cut the SS taxes for EMPLOYEES by 2%. Employers pay the old rate, so when filing your deposits, it is no longer ‘matching funds”.

It is now 4.2% for the EmployEE & 6.2% for the EmployER.

How long before that shortage of deductions & deposits makes things really bad??


42 posted on 01/26/2011 2:54:54 PM PST by ridesthemiles
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To: griswold3

The age of 65 is changing—up a month at a time, every year.

When I turned 65, I had to wait until 65 & 7 months, I think.


43 posted on 01/26/2011 2:59:48 PM PST by ridesthemiles
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To: silverleaf; pissant

***No worries mate, just find the key to the lockbox.***

Here is the promise from 1964!

http://www.ssa.gov/history/ssa/usa1964-2.html

Self-Supporting

“The program is designed so that contributions plus interest on the investments of the social security trust funds will be sufficient to meet all of the costs of benefits and administration, now and into the indefinite future—without any subsidy from the general funds of the Government. Both the Congress and the Executive Branch, regardless of political party in power, have scrupulously provided in advance for full financing of all liberalizations in the program.”

And here is where YOUR money went! Read and weep!

http://www.socialsecurity.gov/OACT/ProgData/fundFAQ.html#n4


44 posted on 01/26/2011 4:48:09 PM PST by Ruy Dias de Bivar (I visited GEN TOMMY FRANKS Military Museum in HOBART, OKLAHOMA! Well worth it!)
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To: pissant
Fear not, my fellow Americans. Your Social Security checks will always show up in time in your mailbox. Unfortunately, you will need six or eight months of them to buy a loaf of bread...
45 posted on 01/26/2011 7:01:38 PM PST by April Lexington (Study the Constitution so you know what they are taking away!)
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