The HI Trust fund (Part A) started cashing in its non-market T-bills in 2008 and will exhaust them in 2017. SS is also now in the red, i.e., paying out more than it is taking in, and will be so for the next two years. It will go into the black after that until 2016 and then go into the red permaently until 2037 when its trust funds are exhausted. What this means is that the General Fund must come up with the money to pay the difference. I suspect that will entail more borrowing because it is doubtful we can cut spending to any meaningful degree. The entitlement programs will bankrupt us unless they are changed significantly. And the sh*t will hit the fan within a decade.
If you want some scary reading, take a look at this: A SUMMARY OF THE 2009 ANNUAL REPORTS Social Security and Medicare Boards of Trustees. We are headed for a huge fiscal train wreck, which is why the politicians of both parties are frantically seeking healthcare reform, which will entail cuts in Medicare and higher taxes. This country is broke.
Scary indeed. As you point out we are way beyond broke. The politicians may be trying to create hyper inflation so they can pay the debt down 10 cents on the dollar. I know that gives them credit for the ability to formulate and execute a plan. As dubious as that may be, it is the only explanation I can think of for their continued boneheaded policies and outrageous spending.
So are we looking at means tested SS,no one collecting until they are 70,taxes on everything under the sun, what holds for the future?