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After nearly fifty years of ripping off the American public, the government scam known as Social Security is coming undone. In 2010, Social Security revenue will not be enough to pay benefits to retirees. The Associated Press reports:
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.
We have to start tapping into the alleged $2.5 trillion in IOU's in the so-called "trust fund." ???? How do we do that ? Here's how:
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.
Now the government will have to borrow even more money, much of it abroad, to start paying back the IOUs, and the timing couldn't be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come.
Yes, kiddies, we have to BORROW the money to pay those SS IOU's. That's because the "trust fund" doesn't exist. It's just paper. Congress spent your SS "trust fund" money long ago. Borrowing the money will drive our deficits even higher, and the piece de resistance is....guess who gets to pay back all that borrowed money ???? Why, it's us, the American taxpayers who funded Social Security in the first place !!! We get to pay for it all over again !!! What a deal ! That's your government at work for YOU (stealing your money) !!!
Now, you will hear various government officials say that SS is "backed by the full faith and credit of the U.S. government." That's supposed to make us feel all warm, fuzzy, and safe, but again....the "full faith and credit of the U.S. government" only means that the government can FORCE us taxpayers to pay for SS...all over again. It means nothing more than that. It only means we've been ripped off, but the government will make make it all good by ripping us off some more. That's the government's definition of "faith." They have "faith" that they can forcibly extract more tax dollars from us after stealing our trust fund.
SS will soon go into permanent deficit status:
In the short term, the nonpartisan Congressional Budget Office projects that Social Security will continue to pay out more in benefits than it collects in taxes for the next three years. It is projected to post small surpluses of $6 billion each in 2014 and 2015, before returning to indefinite deficits in 2016.
For the budget year that ends in September, Social Security is projected to collect $677 million in taxes and spend $706 million on benefits and expenses.
Social Security will also collect about $120 billion in interest on the trust funds, according to the CBO projections, meaning its overall balance sheet will continue to grow. The interest, however, is paid by the government, adding even more to the budget deficit.
Congress will undoubtedly "fix" SS again, as they've "fixed" it so many times in the past, by raising SS taxes (again) and/or cutting benefits (again). Remember, when SS started FDR promised that the SS tax would never be more than 1% of income. Because Congress has systematically raided the SS trust fund since the 1950's to cover up it's own fiscal irresponsibility, YOUR SS taxes are raised over and over, and YOUR SS benefits are slashed over and over. That's the nature of a scam. A scam ultimately collapses under it's own weight, as did Bernie Madoff's scam, which was a drop in the bucket when compared to SS.
Good thing we aren't in enormous trouble with borrowing money already. Oh wait, we ARE:
The national debt — the amount of money the government owes its creditors — is about $12.5 trillion, or nearly $42,000 for every man, woman and child in the country. About $8 trillion has been borrowed in public debt markets, much of it from foreign creditors. The rest came from various government trust funds, including retirement funds for civil servants and the military. About $2.5 trillion is owed to Social Security.
And don't forget the $55 TRILLION in unfunded Medicare entitlement liabilities. There's that little matter to deal with, and now we have President Obummer about to add trillions more in entitlement liabilities with his boneheaded health care reform. What could possibly go wrong ? Besides everything, that is.
Here's one of those government jackasses prattling on about that "full faith and credit" bilge:
Good luck to the politician who reneges on that debt, said Barbara Kennelly, a former Democratic congresswoman from Connecticut who is now president of the National Committee to Preserve Social Security and Medicare.
"Those bonds are protected by the full faith and credit of the United States of America," Kennelly said. "They're as solid as what we owe China and Japan."
Well, that's great news. We're sure on solid financial footing with airheads like Kennelly in charge. About as solid as Greece, where rioters have taken to the streets. How long will it be before that happens here ???
In closing, I can only say, if we don't get off of this Big Government ship of fools real soon, all of us will sink together, and that will be the social justice we richly deserve for our collective irresponsibility. Politicians, especially Democrats, always talk about doing this or that "for the children," but if we really want to help our children, we need to get our fiscal house in order to give our children's futures a snowball's chance in hell. As of now, things couldn't look worse. The enduring shame of the greedy baby boom generation looks to be that we indulged ourselves at the expense of future generations. We may be the first ones to leave America worse off than we found it. That is a legacy I can't embrace.