It seems that Social Security taxes, which until last week were counted on to provide $703B of 'surplus' funds from the 'Trust Fund' over the next years, have plummeted, outlays have risen, and that the net flow from SS taxes is now a near -0- for the next 8 years. This will add another $703B of Treasury Bonds that need to be sold, another $703B on to our already massive and exploding higher every week National Debt.
Yesterday it was reported that the difference between Social Security income (taxes) and outlays (benefits payments), which is known in Washington-speak as “the SS surplus”, would shrink to zero next year.
"As a result, the trust fund's annual surplus is forecast to all but vanish next year -- nearly a decade ahead of schedule."
Thus compounding the annual budget deficit, as boomers bailout and cash in at 62/66/as early as possible, to get as much 'free money' as they can.
$2T deficits for the next decade, declining revenues, increasing expenses, and a challenging bond market for the next 20 years.
What could go wrong?
This kind of financial disaster has no ending.
The great "trust fund" scam. You want to know what is another "trust fund" implosion waiting to happen in about 12-24 months? The FDIC. All the premiums go straight to Treasury, are spent immediately and a Treasury issued IOU to itself is generated.
The money is gone. There is no insurance. Whatever defaults, bailouts or cost of coffee mugs that occur in the FDIC program going forward are to be borne at once by the taxpayer.
It is fairly shocking that citizens haven't caught onto this scam by now as it goes to the basic issue of a social safety net in the country. I don't know why people don't grasp instantly that IOU's issued to yourself are nonsense, but there you go.
It's not just a financial disaster. The paper-based economy we've had for the last 30 or more years has hollowed out the real productive enterprises. We have very little left with which to recover and rebuild with.
I can only recognize three real strengths the U.S. has: We have massive natural resources (which Obama wants to put off-limits), the world's reserve currency and 6,000 nuclear weapons.
So if you had planned to retire to a beach and collect SSi, think again. Payouts will drop -50% or more, or the money you get will be devalued -50%.
