Unless there is another Social Security tax increase in 2010, the system will go into red ink mode and stay there.
The public has not been informed of this, which comes as no surprise. There have been a few scattered stories on the Web, but nothing sustained. The media do not want to admit that the jointly operated Social Security program and Medicare program are going to bankrupt the Federal government if they are not cut back drastically.
They are never cut back. They always expand.
Medicare's Hospital Insurance program has been in red ink mode for two years. The public does not know this, either. To cover the program's insolvency, the government is quietly funding the Hospital Insurance Trust Fund with bailouts from the general fund.
Politically, this creates a problem. When the Treasury taps the general fund, the expenditure appears on the budget – the on-budget budget – as an expenditure. This immediately adds to the deficit, meaning the visible deficit, the one that gets recorded on those wonderful U.S. debt clocks.
When revenues flow into the four Social Security and Medicare trust funds, the money is instantly handed over to the Treasury, which issues non-marketable long-term IOU's to the trust funds. These IOU's are listed as assets by the funds. But, through the wonders of government accounting, they are not listed as liabilities on the government's on-budget budget. They are liabilities only on the off-budget budget, which most Americans are unaware of. This chicanery has been going on ever since the Johnson Administration (Lyndon's, not Andrew's).
The problem facing the politicians is this: when a trust fund is no longer showing a surplus of revenues over expenditures, it has to sell its assets back to the Treasury. The Treasury's non-listed liabilities must be converted into money to send to the legal recipients. This is a red alert of hidden red ink. The public finds out. The debt clocks speed up.
LINK HERE
Hmmm...
ReplyDeletemore TAXES ... less JOBS
more STIMULUS ... less JOBS
more BAILOUTS ... less JOBS
Is anyone wondering how not only Social Security will go BANKRUPT but also FDIC, Medicare, and the entire USA.
The States losing tax money are also going bankrupt and they will cut back on JOBS.
I dont feel too bad. I recently let my old federal school loan fall into the red and subsequently knowing my social security savings would be transfered to cover it, money I knew I would never see. So it was like an early withdrawal.
ReplyDeleteGezzus H again with the SOS!, here may as well re post what i posted once before!!
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Calling Doc Kavorkian!!!!!!
This is getting on my nerves now, all I hear is how were broke, we can't "afford" this or that, OK so what the hell ya wana do, just line up all us old folks and serve us cool aid??
If not, shut the hell up!
If ya can "afford" a cell phone, Ipod, GPS, and high speed cable Internet each month, ... up yours, you ain't had it bad yet.
There's many hundreds of billions of dollars in Social Security that was paid in over the decades by 10's of millions of workers. The average worker will collect from SS what they put in.
ReplyDeleteSocial security is not broke, nor does it cost more than the moneys that go into it from your paychecks.
The Social Security administration is sitting on IOU's from the treasury department of 100's of billions if not trillions of dollars that the treasury spent rather than putting aside for SS.
This is similiar to the City of Houston, which from 2004 to now spent all the money in City pension plans.
Don't say SS is in the red, or will cost any more money to the taxpayer than they ALREADY PAID IN.
We know that is untrue.
SSDI, SSI, SS are all "illusionary" ways to lull the masses to sleep...prior to 1933 there were no govt checks to this degree. This is not a condemnation against those receiving it; but a call to open ones eyes and see the bigger picture.
ReplyDelete2010's almost ending, and I think people are experiencing the pains of the bankruptcy of a lot of companies and banks. A lot of people are taking measures on preventing bankruptcy from happening to them. I, myself, have been doing some measures, too. I don't want to experience bankruptcy. Los Angeles and the other cities of California have been experiencing the pains of bankruptcy, but are still fighting to prevent it from being worse than it already is. I have been looking for lawyers in Long Beach. Lawyers there have been very busy because of the bankruptcy.
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ReplyDeleteMy lawyer who is adept in cases involving the Colorado contract law has been talking with me about this. I never knew that they (Medicare) were hiding their red ink status for years now. He's looking into this since he's researching things involving bankruptcy along with his fellow Colorado business lawyer and friend. They were shocked about this. Well, I understand them because the media hasn't shared the true status since the time it really emerged.
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