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| Economy |
| Social Security to start cashing Uncle Sam's IOUs |
| 2010-03-14 |
| The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration. It's time to start cashing them in. For more than two decades, Social Security collected more money in payroll taxes than it paid out in benefits — billions more each year. Not anymore. This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more. Sounds like a good time to start tapping the nest egg. Too bad the federal government already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors. In return, the Treasury Department issued a stack of IOUs — in the form of Treasury bonds — which are kept in a nondescript office building just down the street from Parkersburg's municipal offices. |
| Posted by:ed |
| #6 With this kind of fiscal discipline, why would anyone believe Obamacare will succeed? Exactly! The Federal government's track record is not very good: Social Security is broke, Medicare is broke, the Post office is broke, the VA has problems in delivering service, Cash-for-Clunkers cost more than it was worth, the border fence has never been completed and we can't control the spillover of violence from Mexico...There are probably other examples of costly failed programs. |
| Posted by: JohnQC 2010-03-14 18:54 |
| #5 Oh, that's just the start. Years ago, when "means testing" was first proposed, it was done so just as a delaying tactic. The bottom line is that there is going to be no Social Security for anyone. Or Medicare. Or Medicaid. While they are figuring on just whittling it away over the course of some years, at a particular point, it will collapse into months, then weeks, then days. Then they will likely choose hyperinflation, combined with re-denomination (removing zeroes), over default, which is pretty much what Zimbabwe is doing. They will choose this, because the 'H-re-' system allows them to continue profligate spending. Default closes the purse, so they no longer have false credit by loaning themselves money, and can only spend tax revenues, not a dime more. Were they to choose default, the US would start to emerge from the disaster after a decade. With h-re-, we will be stuck for maybe 40-50 years. |
| Posted by: Anonymoose 2010-03-14 14:37 |
#4 .JPG) Remember (IOU) by Big DismalThis is the way it is going America ..... You must Hope You're Not Left With Change.
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| Posted by: Gleling Bucket1767 2010-03-14 14:32 |
| #3 Barb, I figured out 30 years ago (when I was a die-hard democrat no less...) when I first started working that Social Security wouldn't be there when it was my turn. I always considered the Social Security payments were just another Federal tax. Much like unemployment insurance. I've worked for 30+ years and never had a single claim... yet I still have to pay the same. That's not insurance - that's a tax. I agree that Bumbles and Bimbo will turn Social Security into a needs-based payment system. I figure Obumblecare will follow suit - just another entitlement program for the vote-slaves on the plantation which we have to pay for. |
| Posted by: CrazyFool 2010-03-14 14:30 |
| #2 "I look for Obama to establish a "needs based" Social Security system in the very near future. " In order to screw me, as I approach retirement age in the next few years, B. But I figured that.... >:-( |
| Posted by: Barbara Skolaut 2010-03-14 13:10 |
| #1 With this kind of fiscal discipline, why would anyone believe Obamacare will succeed? No surprises here. This train has long been approaching the station. The Social Security disability claims are skyrocking. I look for Obama to establish a "needs based" Social Security system in the very near future. |
| Posted by: Besoeker 2010-03-14 12:26 |