Skip to comments.CBO: Social Security Now Officially Broke (Obamanomics)
Posted on 01/26/2011 12:06:02 PM PST by pissant
Todays CBO report has some bad news about the deficit. But CBO has some really, really bad news about Social Security: Its officially broke.
The CBOs 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 theres 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 everythings hunky-dory. But if you compare the programs 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 ...
No worries mate, just find the key to the lockbox
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.
What you do is, form a corporation and have this corporation assume all of the national debt and then have it declare bankruptcy.
But, but, Harry Reid was on Meet The Press like 2 weeks ago saying this would never happen...
The govt will do what it does best....just print more money.
Before you do that, pay back all the money these people have put into the system, with interest.
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%?
All they need to do is pay back the $2.5 Trillion they borrowed from the fund.
It's in the lockbox somewhere sharing space with a certain, celebrated birth certificate.
“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.
That money’s as long-gone as Bernie Madoff’s money.
Including the hundreds of thousands I’ve put into it (Social Security).
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?
You might as well say that to Bernie Madoff.
SS can just issue bonds to cover the ever-growing deficits and the Fed can buy them with printed money!
Now wasn't that easy?
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.”
Just give me a few acres of Yellowstone and I’ll call it even.
I don’t care what name we put on it. The money was taken from the people, against their wishes.
Is that QE 26?
But, you see, intra-governmental transfers aren't counted as borrowing. Why? Because a bunch of accountants said so.
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.
Check with Dingell-Norwood
The list, ping
Let me know if you would like to be on or off the ping list
But theres 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 everythings hunky-dory. But if you compare the programs 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!
“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.
just one time, i wish one of the 535 would stand up and speak the truth [besides ron paul]...
All we have to do is to find that lock box.
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.
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.
Throw this $6.3 Trillion IOU in there too.
sooo I wonder how many more months of the rather small sum are possible. LOL.
>>I dont 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.
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.
Prepare for a life without money, bro. I am.
Doing what I can in that department!
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??
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.
***No worries mate, just find the key to the lockbox.***
Here is the promise from 1964!
“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!