Little-Acorn
05-20-2014, 11:36 AM
You know about the Social Security Trust Fund, right? And how it's empty?
They keep telling us it's got oodles of money in it, and that that money will let SS stay solvent for 15 years, 20 years, 22 years, etc., depending on which politician is talking today. But in fact, it's got nothing but government IOUs in it.
All the money was taken out and spent on other non-SS programs years ago. And since SS expenditures exceeded revenues a year or two back, no more money is flowing into the Trust Fund, except that which is immediately taken out and spent the next day. Part of the National Debt is money the govt has "borrowed" from the SS Trust Fund and other such Funds it maintains.
http://www.treasurydirect.gov/NP/debt/current
Today the National Debt is about $17.5 trillion. Of that, $5 trillion is owed to the SS Trust Fund and other such funds. That's nearly 30% of the National Debt, owed to these Trust Funds.
That means that, in order for the SS Trust Fund and similar funds to actually keep paying what is owed to SS recipients, the money first has to be paid back into the Trust Funds by the government, and then paid out to SS recipients etc.
And if Social Security and the other programs are actually solvent and able to keep paying for the 20 years or whatever the current politicians are promising before it's emptied, that means that ALL the money owed to the trust funds, must be paid off within those 20 years, so it can be paid out to the recipients.
Have you heard of any plans by any of these politicians, to pay off nearly 30% of the National Debt within the next 20 years?
Neither have I.
They'll have to either balance the budget and start running a surplus, to pay off that 30% of the Debt, or they'll have to start borrowing a LOT more money from China or whomever is foolish enough to keep lending to someone who has no intention of ever paying it back. On top of the $trillions they've already borrowed.
Next time you hear some politician talk about how "solvent" Social Security is, ask him where the money is going to come from to pay off the recipients. Retirees who expect to draw out of SS the money they've been forced to pay in most of their lives. Drawing that money out of a Social Security Trust Fund that in fact is empty, except for a lot of government IOUs.
They keep telling us it's got oodles of money in it, and that that money will let SS stay solvent for 15 years, 20 years, 22 years, etc., depending on which politician is talking today. But in fact, it's got nothing but government IOUs in it.
All the money was taken out and spent on other non-SS programs years ago. And since SS expenditures exceeded revenues a year or two back, no more money is flowing into the Trust Fund, except that which is immediately taken out and spent the next day. Part of the National Debt is money the govt has "borrowed" from the SS Trust Fund and other such Funds it maintains.
http://www.treasurydirect.gov/NP/debt/current
Today the National Debt is about $17.5 trillion. Of that, $5 trillion is owed to the SS Trust Fund and other such funds. That's nearly 30% of the National Debt, owed to these Trust Funds.
That means that, in order for the SS Trust Fund and similar funds to actually keep paying what is owed to SS recipients, the money first has to be paid back into the Trust Funds by the government, and then paid out to SS recipients etc.
And if Social Security and the other programs are actually solvent and able to keep paying for the 20 years or whatever the current politicians are promising before it's emptied, that means that ALL the money owed to the trust funds, must be paid off within those 20 years, so it can be paid out to the recipients.
Have you heard of any plans by any of these politicians, to pay off nearly 30% of the National Debt within the next 20 years?
Neither have I.
They'll have to either balance the budget and start running a surplus, to pay off that 30% of the Debt, or they'll have to start borrowing a LOT more money from China or whomever is foolish enough to keep lending to someone who has no intention of ever paying it back. On top of the $trillions they've already borrowed.
Next time you hear some politician talk about how "solvent" Social Security is, ask him where the money is going to come from to pay off the recipients. Retirees who expect to draw out of SS the money they've been forced to pay in most of their lives. Drawing that money out of a Social Security Trust Fund that in fact is empty, except for a lot of government IOUs.