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Social Security Reaches The Tipping Point

It was not expected to happen until no sooner than 2016 but Social Security will pay out more this year than it takes in.

This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office. The New York Times

Officials say that Social Security has 2.5 Trillion dollars in the “trust” fund so they can pay retirees (and the myriad of others who have become eligible over the years) for some years to come.

The problem is, there is no real trust fund. A trust fund would be a place where they put the money and can get to it when they need it. Instead, Social Security is forced to buy government bonds and the money it collects goes into the general fund where politicians, instead of saving it for Social Security (as it was intended) spend it on other things.

We have no money in the bank for when the government bonds are cashed. The government paper is not worth the ink that is on it because we have no money to honor the commitment.

We borrow a lot of money from other countries to pay our debt and the interest on the debt is astronomical.

There is no way that government will be able to honor the commitment it made because it did not keep our money safe like it was supposed to. If the money had been put away we would be in good shape.

So if they are going to be collecting money for the next four years to pay for health care what are the odds that they will spend it one something else and there will be no money when it comes time to deliver Christmas to all the serfs?

Never surrender, never submit.
Big Dog

Gunline

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