Social Security Cuts Threats - Something is Very Wrong

For those of us that don't understand what and how Social Security was initially set up, then here is a quick course in Social Security 101, because something is very very wrong.

SS was set up in 1935 by the federal government to make sure that people that worked all their lives had something when they retired. The money is taken from a portion of each paycheck and paid into a trust fund that is not, or was not supposed to be used for anything else except the people that paid into it.

So basically all the money paid in should be there for every retired person. It's their money to begin with.

Here is where I think this is complete BS.

The government is threatening people that have retired and who have paid into SS their entire lives, with good faith and trust, that if the debt ceiling is not raised their benefits are at risk.

The Social Security Administration has begun warning the public it cannot guarantee full benefit payments if the debt ceiling isn’t increased.

When asked by the public, the agency is notifying beneficiaries that “Unlike a federal shutdown which has no impact on the payment of Social Security benefits, failure to raise the debt ceiling puts Social Security benefits at risk,” according to a person familiar with the agency directive.

The warning was assembled after the agency consulted with the Treasury Department, which would play a lead role in determining how the government handles payments if the borrowing limit isn’t raised soon.

blogs.wsj.com...

OK, Hang on here folks. This money is not dog biscuits they can hold back because a dog is not behaving, nor is it some welfare that they are graciously bestowing upon the poor, these people paid for it their entire lives.

What is wrong with this picture here?

Speaking of welfare, food-stamps, and other freebies how is it that these programs are not cut out first, because most likely these people never paid anywhere near what the SS people paid into the system?

reply to post by Realtruth


Don't forget either, one of the things our loving government always fails to mention is that they drained the fund and filled it with IOU's a long time ago.......

It's a scare tactic as it always is, mainly because they know if they pull that plug, they might as well declare Martial Law and initiate their final protocol for ending our sovereignty and join the NWO....

reply to post by seeker1963


Time to amend the constitution.

"No lobbyist shall be permitted to donate, bribe, fraternize, associate, or co-mingle with any government official, at any level of government, if convicted, each party shall receive a minimum of 10 years to life in jail."

its all lies

Under the Supreme Court Case Helvering v. Davis case. On November 12, 1936, "(Social Security payments) are not earmarked for any special purpose." They are (Social Security payments) "true taxes, their purpose being simply to raise revenue . . . available for the general support of Government." This was a Supreme Court decision questioning the constitutionality of Social Security.

this is why SS payments will stop because they are part of the general fund. there is no lock box. its all a shell game and time is running out.

basically all the money paid in should be there for every retired person. It's their money to begin with

That is not true.

6% of what they paid in is 'theirs'

The employers matching that contribution is not theirs.

The rest of us who get taxed, again to cover the shortfall.

Social Security is a lie.

The average monthly stipend is $1000 bucks a month $12 grand a year.

That is well below the national poverty level.

And people DEFEND that stupidity.

People would make more on that evil wall street, and they would not have to wait 30 years to collect it, and live a far better life than they do on SS.

But who cares right?

Government is looking out of us(blowing our money)

Screw Wall Street!

Oops seems in my opinion NOONE screws the people like its very own government, then points the finger at someone else.


Blah.

reply to post by Realtruth


What's wrong with the picture is that that very fund has already been raided, lost and gone.

It's filled with Treasury IOU's, which you can't send as a check to those pulling SS.

cenpuppie
reply to post by Realtruth

 

What's wrong with the picture is that that very fund has already been raided, lost and gone.

It's filled with Treasury IOU's, which you can't send as a check to those pulling SS.

What would happen if everyone started to send IOU's for tax returns, or taxes period?

From wiki...

Trust fund

Social Security taxes are paid into the Social Security Trust Fund maintained by the U.S. Treasury (technically, the "Federal Old-Age and Survivors Insurance Trust Fund", as established by 42 U.S.C. § 401(a)). Current year expenses are paid from current Social Security tax revenues. When revenues exceed expenditures, as they did between 1983 and 2009,[33] the excess is invested in special series, non-marketable U.S. Government bonds. Thus, the Social Security Trust Fund indirectly finances the federal government's general purpose deficit spending. In 2007, the cumulative excess of Social Security taxes and interest received over benefits paid out stood at $2.2 trillion.[34] The Trust Fund is regarded by some as an accounting construct which holds no economic significance. Others argue that it has specific legal significance because the Treasury securities it holds are backed by the "full faith and credit" of the U.S. government, which has an obligation to repay its debt.

seeker1963
reply to post by Realtruth

 

Don't forget either, one of the things our loving government always fails to mention is that they drained the fund and filled it with IOU's a long time ago.......

It's a scare tactic as it always is, mainly because they know if they pull that plug, they might as well declare Martial Law and initiate their final protocol for ending our sovereignty and join the NWO....

My understanding of the matter is you are exactly RIGHT!

We are always hearing about how Social Security is going to run out of money.

How come we never hear about Welfare running out of money?

What's interesting, the first group "worked for" their money and the second didn't unless they once held a job and paid taxes.!!?

If they would give me 4% interest and amortize over the last 48 years and come up with a rate for the money I paid in plus interest I would be rich! One day at the "printing presses" would certainly fix allot of folks problems instead of the banks being bailed out due to their own stupidity...

reply to post by Realtruth


United States is in a state of total collapse. What you are now witnessing is the last death pains before this once proud country is no more. I reckon you will see a lot of violence ahead the coming year. If you have money in the bank forget them. Unless you take them out before 17th this month, and the default shocks the Tokyo market on the 20th they´re gone the week after.

This collapse is already decided on the highest level. The élite have used the army to serve its purpose. Now its not needed anymore as they have established a good functioning surveillance state with NSA combined with their storm troopers at Homeland Security. Hence they are dumping the vets and will also dump the rest of what they consider dead weight and useless eaters.

Remember, we are talking about around a thousand persons, richer beyond anything you can imagine. To them you are nothing or even less than nothing. To them you are a trespasser on their land, what you think is USA.

I know you might doubt this, but I tell you, if you think this thing with the social security, the national parks and the vets is wrong, you havent seen nothing yet.

While the Republicans and the Democrats play their game of Cowboys and Indians, the country is slipping closer and closer the default possibility of the debt crisis. There may be some out there that will be saying it won’t happen. There are others that are out there saying that they have been waiting for this for a long time now and it serves them right for getting the country into the situation.

Most americans will, in the coming months, wake up to such a nightmarish scenario that it will shock them to the core. My heart goes out to all children whose parents were too lazy and too dumb to foresee this outcome. they will have to carry the unbearable burden of their parents inaction when it was most needed to save the future of their own children.

As someone that lives off of social security benefits (due to disability), as well as my mom (who lives with me due to her age and inability to care for herself at times), I can say that, if the benefits get cut, we'll be about as down and out as it comes.

This whole chess game is ridiculous and is tiring, and I guarantee there will be a bigger back lash to this situation than the gov't wants.

But, I know this for sure... either they will resolve it all and things will get "back to hunky dory land" or it will ALL collapse.

The question remains, in my mind, of whether or not they're at the point of being willing to let it all go or not.

The input on this topic thus far is very thought provoking and very honest.

I am trying to keep a positive frame of mind here, but it appears TPTB are pushing for some kind of mass chaos so they can offer up solutions so everyone is happy again, but the fact remains they are the ones creating the problems, and we just seem to put up with it.

Sigh

There is no fix, this is not a problem that is going away. As soon as the feds ability to borrow ends there will be large cuts to social security, Medicare and welfare.

There simply has to be, we are running a 40 percent deficit and entitlements will be where a good portion of the cuts will come from. They have to be as they already account for ALL of the taxable income.

This is not far off, in fact I think there is no way the cuts will not be enacted with in five years, and more likely within the next year or so when the economy collapses.

Things are going to get much worse before they get better. Their is zero chance of things getting better until our debt is defaulted.

I know this is going to be horrible, there is just no point in sugar coating how bad this is going to be. Everyone needs to be doing everything they can to prepare for the coming collapse.

Maybe just stopping welfare would be enough,.
I mean,. there are ALOT of useless leaches out there

wow,. could you imagine if they stopped welfare?
nail techs and hair salons would go outta business..

Lil Drummerboy
Maybe just stopping welfare would be enough,.
I mean,. there are ALOT of useless leaches out there

No it's not. Welfare is less than 300 billion.

The biggest problem by far is our medical costs, Medicare and medicade. Medical costs have gone up 8 percent a year since 1980. That means they double in less than eight years. They are already in excess of 800 billion a year. The rate of increase is only going to increase with obamacare.

So basically if things don't change within 10 years or so ALL taxes will go towards medical costs, which obviously can't happen.

The other major expense is interest cost on the debt, it goes up nearly 150 billion for every percent increase, and we are at historically low rates because of the Fed reserves game of buying its own debt to keep rates down. That scam will not work much longer and rates will spike. Unfortunately for us lowly citizens our debt and the interest on it are promised to be paid before any other expenditures like entitlements.

Military spending can be cut by 400 billion if there was a will to do it which would help, but would be far from enough to solve our problems.

Other thing to remember about cutting welfare and social security, many will turn to crime, and prisons and police cost money too. So it would actually not likely save much if we want to keep our current standard of living. Problem is whether we want to keep it really doesn't matter because we can't afford it.

proximo

Other thing to remember about cutting welfare and social security, many will turn to crime, and prisons and police cost money too. So it would actually not likely save much if we want to keep our current standard of living. Problem is whether we want to keep it really doesn't matter because we can't afford it.

Thank you for this point of view makes logical sense.

And for the countries medical care system......

I think what we need is a complete overhaul of the medical system, and the next person to write a health care bill should be someone that is not an ex CEO of the medical insurance industry.

Anything is better than the mess we have now.

reply to post by proximo


Agree this is it for the USA as we have known her.

reply to post by Realtruth


Here is a little something that is going around on the internet these days. It is a perfectly sensible question:

"Why is it that social security may run out of money and welfare never does?"

Let us not forget for a second that the SS was doing fairly well until it was raided and the money put into the general fund where it went Heaven knows where (but into the military and welfare "entitlements" would be a good guess).