In order to make up the shortfall, SS must redeem the T-bills in the SSTF thru the General Fund. In order to come up with the money to pay the benefits, the GF borrows 42 cents of every dollar spent.
Pelosi and the Dems like to say that SS does not contribute to the national debt, but in fact, it does.
Source: CBO Combined OASDI Trust Funds; January 2011 Baseline 26 Jan 2011.
Note: See Primary Surplus line (which is negative, indicating a deficit)
The Fed will never allow privatization of SS for the sole fact that it would deny them revenue, and take away their political “football” as a social engineering tool. I would be really worried with them taking over private retirement funds, and privately funded pensions (IRA’s, 401K’s, RR, etc.).
A local Reno station said that when new 2013 paychecks are calculated, that over $200 BILLION would be ‘sucked out’ of the American economy.
Funny how there was NEVER such a story when over the past 2 years that same $200 BILLION was SUCKED OUT of the Soc Sec fund itself. Especially when millions were being dropped off long term unemployment & switched over to SSDI by the Gederal authorities.