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If the trust fund were filled with corporate bonds or bonds issued by foreign governments, the sale of trust fund assets would not have any effect on the Federal deficit. But because the trust fund contains nothing but Treasury IOUs, it will have an effect on the deficit. It will raise it.
This means that funds from general revenues must pay Medicare obligations this year. Problem: General revenues in fiscal 2009 are expected to be $1.8 trillion in the red...Part of that general fund deficit is covered by Social Security revenues (FICA). These revenues are paid into Social Security by employers and employees. Excess revenues after Social Security payouts are transferred to the Treasury in exchange for nonmarketable IOU's from the Treasury.
The increase in the debt for Social Security's trust fund does not appear on the on-budget debt of the U.S. government, i.e., the debt reported by the various government debt clocks. It is off-budget debt. The public is unaware of this.
This cookie jar is expected to be empty in 2017, as the Trustees report. But the recession is creating unemployment. Unemployed people do not pay FICA taxes. So, the 2017 date is optimistic. The cookie jar could be empty as early as 2013, according to Prof. Kent Smetters of the University of Pennsylvania's Wharton School.
Smetters is an expert on the issue of the two programs' trust funds. His 2005 testimony before Congress on the off-budget unfunded liability -- $83 trillion -- is here (pdf).
Like Bernie Madoff's scam, the government's medicare/social security scam is about to be overloaded with money demands. The government won't be able to meet these demands given its current expenditures and income stream. Aside from printing money, the only option the government has is to cut expenditures. Got the picture? So where are they going to cut? The young that they can patch up and put back into the workforce, or those whose working days are over?
If you are no longer working, the government considers you a burden. You have already had your "good years". (Translation: "Good years" = Taxpaying years)
Originally posted by km1550
Sarah Palin is a transparent...
snake-oil salesman liar.
I pray she's the foolish right's 2012 candidate.
Originally posted by Eurisko2012
reply to post by Grayelf2009
The democrats are terrified of Sarah.
She connects with the American people.
The more the libs attack her, the more i think that she's the best
candidate in 2012. In the mean time she can help raise money for
the election in 2010. Lets win back the House and Senate and then
throw out Obama.
He is making it easy for us.
He is trying to throw old people under the bus with ObamaCare.
Maybe he forgot. Old people vote!
Originally posted by daniel815
reply to post by slicobacon
Wasn't it Lincoln who said the goverment should do what individuals by themselves can not. Was Lincoln a liberal?
Originally posted by tatersalad
reply to post by king9072
all i can say to your hard words is this. ATLEAST SHE HAS A SPINE AND IS STANDING UP FOR UNJUST LAWS trying to be passed. sure dont see a whole lot of other people grabbing there manhood and doing anything about it. come to think about it what exactly are you doing about it, besides throwing anger and hate at people that are trying to make a differnece
owe maybe i am taking it all wrong maybe you are a obama cocktail drinker!!!