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In my last post, I touched on the problem of our huge unfunded entitlement liabilities, primarily Social Security and Medicare. Yesterday, the Obama administration admitted the problem exists. Yippee ! This may not seem like such a big step forward, but it is. Remember, for years the Democrats in Congress denied there was any problem whatsoever. They kept saying SS and Medicare were in fine shape for decades. Little to worry about. As Senate Majority Leader Harry Reid (D-NV) said in 2005:
“Today’s report confirms that the so-called Social Security crisis exists in only one place — the minds of Republicans. In reality, the program is on solid ground for decades to come.”
That Harry is such a kidder. Fellow kidder and Speaker of the House Nancy Pelosi (D-CA), said this in 2005:
"There is no Social Security crisis. We all agree that there is a problem down the road that we should address before it becomes a bigger problem.”
But Pelosi has taken no action on Social Security or Medicare since becoming House leader. None. She also helped shoot down all previous Republican attempts at reform.
The Associated Press reports on the Obama administrations response to a Trustee report detailing the dire financial straits of SS and Medicare:
Social Security and Medicare are fading even faster under the weight of the recession, heading for insolvency years sooner than previously expected, the government warned Tuesday. Social Security will start paying out more in benefits than it collects in taxes in 2016, a year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner, trustees reported.
Medicare is in even worse shape. The trustees said the program for hospital expenses will pay out more in benefits than it collects this year, just as it did for the first time in 2008. The trustees project that the Medicare fund will be depleted by 2017, two years earlier than the date projected in last year's report.
The Congressional Budget Office recently projected that Social Security will collect just $3 billion more in 2010 than it will pay out in benefits. A year ago, the CBO had projected that Social Security would have a much higher $86 billion cash surplus for the 2010 budget year, which begins Oct. 1.
Medicare's condition is more precarious.
The trust funds — which exist in paper form in a filing cabinet in Parkersburg, W.Va. — are bonds that are backed by the government's "full faith and credit" but not by any actual assets. That money has been spent over the years to fund other parts of government. To redeem the trust fund bonds, the government would have to borrow in public debt markets or raise taxes.
Did you catch that last part ? SS and Medicare are NOT BACKED BY ANY ACTUAL ASSETS, and funding them would require the government to BORROW MONEY OR RAISE TAXES. In other words, the government spent your trust funds. I've been trying to make people aware of this for years, and this has to be the first time in recorded history that our mainstream media has admitted the truth about our Ponzi scheme SS and Medicare "trust funds." Halellujah !!!
The first step to recovery is admitting you have a problem.
Of course, the AP is also admitting that our wonderful, compassionate politicians in Washington D.C. have been ripping us off for trillions and trillions of dollars for several decades, but I don't expect Obama or Congress to appoint any blue ribbon investigative panels or independent prosecutors to look into the matter anytime soon. We'd have to put a LOT of people in jail, and if we did put the deserving Congressers in jail for SS and Medicare fraud, well, let's just say the Democrats wouldn't be the majority party any longer.
Hate to say 'I told you so' to some of my more doubting readers, but I told you so. The federal government is worse than Enron and worse than Madoff. Far worse.
Here's Treasury Secretary Tim Geithner:
"The longer we wait to address the long-term solvency of Medicare and Social Security, the sooner those challenges will be upon us and the harder the options will be."
That's right, Tim. Btw, haven't Republicans been saying the same thing for years and years ? Yes, they have, including former President Bush.
The bottom line here is - get ready for massive tax increases. Massive. And lots of them.
The coup de grace of Democratic bs also came from Pelosi yesterday. Guess who San Fran Nan blames for the SS and Medicare crises she didn't think even existed previously ? If you said "Bush," you win a cigar. From cnsnews.com :
"The Trustee's reports reveal that, just as they left behind a record of recession, deficits and debt, the Bush administration's economic and fiscal mismanagement undermined the strength of Social Security and Medicare,” Pelosi said Tuesday in a news release. "The previous administration's shortsighted economic policies and fiscal recklessness have made the task of strengthening Social Security and Medicare for the future more difficult."
Un-be-liev-able. I better stop now, before I unleash a string of profanity aimed at our "esteemed" Speaker of the House. Is this woman genetically incapable of honesty ? She has no business leading the Democratic party in the House, or leading anything else, for that matter.