posted on 08/12/2012 12:04:21 PM PDT
the program's $2.7 trillion surplus is starting to look small.
2.7 trillion in special treasury bonds (a.k.a. IOUs) is not a surplus.
Those days are over.
posted on 08/12/2012 12:08:29 PM PDT
To: Olog-hai; John Semmens
...the program's $2.7 trillion surplus...
I see the AP has taken to writing satire instead of reporting the news.
posted on 08/12/2012 12:14:25 PM PDT
(Pride breakfasted with plenty, dined with poverty, and supped with infamy. Benjamin Franklin)
I wonder how much Zer0’s payroll tax “holiday” will lower the benefits of future retirees...especially boomers.
posted on 08/12/2012 1:10:18 PM PDT
There is no surplus. It's long gone. What the trustees took was IOUs, not even regular treasury bonds. So, when the SS system sends an IOU to the Treasury to get money to pay the plan participants the government has to take the money out of the current years budget, which is already funded over 40% from borrowing. So it's fair to say that the plan for SSI is to borrow money (create new T-bill debt) to pay off the plan participants. Because there isn't that much appetitie for sovreign debt at this point (see: Greece, Italy, Portugal, Spain) it is estimated that over 70% of last years debt was bought by the Fed itself (sometimes hidden through varoius machinations). Meaning, money was created out of thin air to buy bonds, which were used to pay off SSI recipients.
How long that can be sustained is anyone's guess, but it sure looks like the classic hyperinflationary spiral (ie: the snake is eating it's tail!)
Prep. PT. Propagate truth. Repeat.
posted on 08/12/2012 1:23:53 PM PDT
by Jack Black
( Whatever is left of American patriotism is now identical with counter-revolution.)
I LOVE these Friday Silliness threads!
posted on 08/12/2012 1:29:38 PM PDT
by Thom Pain
(U.S. Constitution is a CONTRACT!)
Since 2010, Obama has done absolutely nothing to address this issue. He needs to be called out on this - and not be allowed to get away with his pat “soak the rich” solution.
posted on 08/12/2012 2:28:27 PM PDT
(Either the politicians fix our fiscal insanity, or the markets will.)
"As millions of baby boomers flood Social Security with applications for benefits, the program's $2.7 trillion surplus is starting to look small."
Does anyone remember during the debt ceiling debacle last Summer, Obama said he couldn't guarantee SS checks would go out if agreement wasn't reached?
If the SS surplus is real, why would he have said that? (rhetorical Q)
posted on 08/12/2012 2:31:32 PM PDT
(In a tornado, even turkeys can fly.)
What amazes me is that 40 million plus Americans actually pay AARP every year to tell them the “trust fund surplus” is real.
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