Posted on 02/18/2005 11:30:14 AM PST by RSmithOpt
Basically within 13 years (2018 according to Bush and Rush), dollar outflows will exceed inflows. So, are those numbers correct with the trust fund off limits inspite of budget defecits?
If not, the phones need to ringing off the hook with our representatives.
Bwahahahahahaha! The trust fund is a bunch of government bonds. That means that Congress has already grabbed the cash, spent it, and left behind an IOU.
You're a few decades too late.
Let me be the first.
THERE IS NO TRUST FUND!!
Social Security has been going into the General Fund for years now,
The Congress already got their hands on it.
I was gonna say it, but they beat me to it. The trust fund is a (unkept) promise.
Gator is absolutely correct. Those receiving SS benefits today, are getting them from people who are working today.
it is just a accounting gimmick. The general fund must begin pouring money into SS in 2018, or maybe a bit earlier.
They left a marker when they spent the money on general budget items, and SS will be cashing in those markers.
The unfortunate disaster that is coming, is due to the fact that Medicare will be asking for 10 times what it needs now during the same period of time.
It is a financial cliff!
"meaning the Treasury/budget will have to make up the difference."
By redeeming the bonds that were issued previously. It is only in 2042 or 2052 depending on whom you ask, that they run out of bonds to redeem too. At that point, under current projections, benefits would decline slightly for some period of time.
The bonds were only IOU's, tough to redeem.
Basically the government will have to add to the deficit to fund social security in 2018. Or, raise the retirement age, increase FICA taxes, lower benefits.
OR, Fix it.
We are on the verge of breaking the biggest killers we face today. Material improvements in these diseases will take a huge burden out the medical system in the future.
" tough to redeem."
Say what? How can govt bonds issued by the govt and redeemed by the govt be tough to redeem. All they do is issue cash for them. Inflationary maybe but certainly not tough.
"add to the deficit to fund"
This is completely wrong. The deficit or debt includes the above mentioned bonds. Redeeming an existing bond actually remove debt from the books lessening the national debt.
Baby boomer retirement and the demographics and long life spans behind the numbers.
Scientific helps will be helpful! But the problem is not going away.
No, not really. Without reforms the Fed will need to borrow new money (bond issue)to pay old debt.(bonds issued earlier)
Around we go!
Can you say tax increases? How about a three dollar gas tax?
At some point, the crap will hit the fan.
All this needs to be recognized by the public now. It is not a hidden plot, or a Republican caused problem.
We recognized that the economic power of the U.S. cannot sustain high taxes and continued fed spending. Bush funded some of the most important items and reduced taxes to frustrate the growth of government.
9/11 caused a bit of a deficit situation, but we will grow our way out.
The project now is to reduce the growth in government while addressing the future financial obligations.
A task that nobody wants.
SS must come off the budget. It won't help much, but it is the easiest to address.
If we cannot address it now, we will certainly be forced to address it later. The cost will be higher and all the rest of the difficulties will frustrate the process.
The government paralysis could cause the markets to react and away we go!!!!!!!
No bankruptcy attorney can fix that. The government would default.
The SSTF does not represent an asset to the USG, rather it is an unfunded liability. Anytime you hear a politican using the "solvency" of the SSTF to describe the state of SS, you know that it is a bunch of BS.
Besides the fact that SS is a pay as you go system and the bonds from the SSTF must be redeemed using real money, the benefits will decline approximately 25% in 2042 if all the bonds are paid off. By that time, our economy would be a disaster with over 70% of the federal budget being consumed by entitlement programs and another 25% servicing the debt. Doesn't leave much else for discretionary items like national defense. LOL
There are no "bonds". There are only IOU's.
THERE IS NO TRUST FUND!
The so called "trust fund" is nothing more than IOU's because congress has spent EVERY PENNY that has ever been collected in SS taxes.
You would think so. But unless the government is running a surplus in excess of the amount of bonds redeemed, the government will just issue a new bond to pay the old bond.
It is no different than paying the Visa with the Mastercard.
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