Social Security: "Here It Comes"

The Market Ticker ^ | 3-15-10 | Karl Denninger

[HangnJudge]

This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes -- nearly $29 billion more.

In a world where we talk about trillions, this doesn't sound like much. But it's not the amount that's the problem - it's the direction.

For decades government has cooked its books by stealing the Social Security taxes you pay. This was the infamous "lock box" debate had during Gore's campaign. Too bad Mr. "the world's getting hotter so I have to live in my 20,000 sqft mansion with the AC blasting in all 79 rooms" Gore decided to make a partisan political issue out of something that his boss (that would be Herr Clinton) had practiced himself to make the (false) claim that he had run a surplus!

There was no surplus in the 1990s folks. Clinton, like the Presidents before and after him (from both sides of the aisle) simply stole the FICA tax receipts, replacing them with non-marketable bonds.

If you're wondering why we have hinky accounting in our banks, a good part of the reason is that our government cooks the hell out of the books themselves.

There's little reason for private business to behave ethically when our government won't, and there's little risk of prosecution when the scamming starts at the very top.

In order for the government to redeem these bonds it will have to issue more marketable debt, dollar-for-dollar. So if you look at the "Debt To The Penny" screen, what will begin to happen is that the "Intragovernmental holdings" (and boy are they mental) will shrink a bit, while the "Debt Held By the Public" line will of course grow.

[count-your-change]

Makes you wonder how you could be such problem and be called a greedy burden.

[Eric in the Ozarks]

I feel so ashamed.

[Soothesayer9]

"They will gradually raise the age for full benefits from 65 to 70 and reduced benefits from 62 to 67 and lift the cap on income for taxing for SS.

I predict a coming renaissance in ingeniously hiding income from Big Govt within 20 years. People will not permit 50% of their income being taken by tyrants.

[count-your-change]

Since you'll be getting no COLAs for two years (will your cost of living remain static?) you can hold your head high as you've made enough sacrifice. Cheers!

[Eric in the Ozarks]

I thought I should probably file early since the entire program is likely to be scrambled in the next few years. All my investments are liquidated and my 401 Ks have moved out of stocks and into conservative bonds throwing off +/- 5 percent interest.

With the wonderful check from SS, an occasional brokerage deal (kept under the $14,160 limit) I can do OK.

I have a couple of books backed up in mind to write and I like to get up early.