Posted on 01/15/2011 10:25:37 AM PST by MostlyAnti-Lib
Like Pandora’s box, the only thing left in the “SS lockbox” is `Hope’ (and handful of change).
I don’t understand. Who is trying to pulling wool. What do you think is a lie here?
The USG will have to create new debt to redeem to the SSTF IOUs. That is the problem.
The alternative is to raise taxes. There would be a revolt if taxes were raised to pay for the benefits in just a few years.
And of course the third alternative would be to cut benefits to the point where tax payers are willing to assume the burden.
I agree that we are at the edge of what we can borrow without completely collapsing the system.
Looks like to me practically speaking we are going to have to cut benefits.
What politicians would love to do is let inflation do the dirty work - if COLAs don’t keep up with inflation, it amounts to negative compounding, gradually reducing the real cost of entitlement benefits.
According to the 2010 Trustees report, the Social Security trust funds will have an annual surplus of $77 billion in 2010.
According to news reports, the system was in the red in 2010.
There was a deficit this year. Probably next year too. Then they expect a surplus for a while. Then, the deluge.
Most Americans don't have a clue as to how much trouble we are in. We are bankrupt and there is no way to get out of our predicament without a lot of pain. It is going to be terrible.
You pay your FICA.
Congress spends it funding current retirees and any ecess funds are spent on beetle dung research.
Congress issues an IOU to the SS Trust Fund for the amount they spent on beetle dung research and other things not related to Social Security.
The IOU, in the form of a worthless bond, is worthless.
Your SS contributions are not yours. If you die the money you contributed goes down the rat hole. Your loved ones get nothing, nobody passes go.
Rinse and repeat until the scheme falls under it's own weight.
It is simplicity in itself. I think people over think it because they can’t believe it can be that simple.
Do most British evangelicals say that Jesus is the only road to God?
This was all explained to me when I was 18 (I’m 56 now). It’s not like we just woke up this morning and discovered this mess. So I never expected to see any benefits. But if the whole economy collapses any advantage I might have had from that early understanding will be moot.
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