Sorry, College Grads, You’ll Probably Never Get Your Social Security Money

[martybegan]

Politicians say SS will keep paying out 15, 20, 30 etc. years. But will it?


You know about the Social Security Trust Fund, right? And how it's empty?

They keep telling us it's got oodles of money in it, and that that money will let SS stay solvent for 15 years, 20 years, 22 years, etc., depending on which politician is talking today. But in fact, it's got nothing but government IOUs in it.

All the money was taken out and spent on other non-SS programs years ago. And since SS expenditures exceeded revenues a year or two back, no more money is flowing into the Trust Fund, except that which is immediately taken out and spent the next day. Part of the National Debt is money the govt has "borrowed" from the SS Trust Fund and other such Funds it maintains.

Debt to the Penny (Daily History Search Application)

Today the National Debt is about $17.5 trillion. Of that, $5 trillion is owed to the SS Trust Fund and other such funds. That's nearly 30% of the National Debt, owed to these Trust Funds.

That means that, in order for the SS Trust Fund and similar funds to actually keep paying what is owed to SS recipients, the money first has to be paid back into the Trust Funds by the government, and then paid out to SS recipients etc.

And if Social Security and the other programs are actually solvent and able to keep paying for the 20 years or whatever the current politicians are promising before it's emptied, that means that ALL the money owed to the trust funds, must be paid off within those 20 years, so it can be paid out to the recipients.

Have you heard of any plans by any of these politicians, to pay off nearly 30% of the National Debt within the next 20 years?

Neither have I.

They'll have to either balance the budget and start running a surplus, to pay off that 30% of the Debt, or they'll have to start borrowing a LOT more money from China or whomever is foolish enough to keep lending to someone who has no intention of ever paying it back. On top of the $trillions they've already borrowed.

Next time you hear some politician talk about how "solvent" Social Security is, ask him where the money is going to come from to pay off the recipients. Retirees who expect to draw out of SS the money they've been forced to pay in most of their lives. Drawing that money out of a Social Security Trust Fund that in fact is empty, except for a lot of government IOUs.

No big deal. Your taxes will be raised to pay back Social Security all the money that was borrowed.

The standard progressive response. "Just raise taxes"

 

[NYcarbineer]

The far left continues to show how disconnected they are form reality..

Fist off the first dip in the SS trust fund was done by Nixon to pay for the Vietnam war.

Regan tried to stop the dipping into the trust fund when the far left Congress was able to over ride his veto on letting Congress access the SS trust fund.

Mainly the SS trust fund is in the form of IOU's..

When will the far left learn they are part of the problem and never part of the solution..

The current predictions on SS becoming totally insolvent are 2025 to 2030. And that was done by the CBO they also now because of Obamacare Medicare becomes insolvent in 2020 to 2025.

Once again the far left should never be in control of anything..

Virtually nothing you said is true.

Looking in the mirror again when you posted that? or still believing the far left talking points and propaganda?

No I'm right and you're wrong.

The Social Security Trust Fund has been loaned to the general fund since 1940:

Social Security History

You can scroll down to Table 2 for the numbers.

 

[NYcarbineer]

Politicians say SS will keep paying out 15, 20, 30 etc. years. But will it?


You know about the Social Security Trust Fund, right? And how it's empty?

They keep telling us it's got oodles of money in it, and that that money will let SS stay solvent for 15 years, 20 years, 22 years, etc., depending on which politician is talking today. But in fact, it's got nothing but government IOUs in it.

All the money was taken out and spent on other non-SS programs years ago. And since SS expenditures exceeded revenues a year or two back, no more money is flowing into the Trust Fund, except that which is immediately taken out and spent the next day. Part of the National Debt is money the govt has "borrowed" from the SS Trust Fund and other such Funds it maintains.

Debt to the Penny (Daily History Search Application)

Today the National Debt is about $17.5 trillion. Of that, $5 trillion is owed to the SS Trust Fund and other such funds. That's nearly 30% of the National Debt, owed to these Trust Funds.

That means that, in order for the SS Trust Fund and similar funds to actually keep paying what is owed to SS recipients, the money first has to be paid back into the Trust Funds by the government, and then paid out to SS recipients etc.

And if Social Security and the other programs are actually solvent and able to keep paying for the 20 years or whatever the current politicians are promising before it's emptied, that means that ALL the money owed to the trust funds, must be paid off within those 20 years, so it can be paid out to the recipients.

Have you heard of any plans by any of these politicians, to pay off nearly 30% of the National Debt within the next 20 years?

Neither have I.

They'll have to either balance the budget and start running a surplus, to pay off that 30% of the Debt, or they'll have to start borrowing a LOT more money from China or whomever is foolish enough to keep lending to someone who has no intention of ever paying it back. On top of the $trillions they've already borrowed.

Next time you hear some politician talk about how "solvent" Social Security is, ask him where the money is going to come from to pay off the recipients. Retirees who expect to draw out of SS the money they've been forced to pay in most of their lives. Drawing that money out of a Social Security Trust Fund that in fact is empty, except for a lot of government IOUs.

No big deal. Your taxes will be raised to pay back Social Security all the money that was borrowed.

The standard progressive response. "Just raise taxes"

And your answer is what?

 

[Kosh]

Virtually nothing you said is true.

Looking in the mirror again when you posted that? or still believing the far left talking points and propaganda?

No I'm right and you're wrong.

The Social Security Trust Fund has been loaned to the general fund since 1940:

Social Security History

You can scroll down to Table 2 for the numbers.

Typical far left would much rather see the world burn than admit they are wrong!

Why do you post links you really don't even read?

CBO projects that under current law, the DI trust fund will be exhausted in fiscal year 2017, and the OASI trust fund will be exhausted in 2033.

The 2013 Long-Term Projections for Social Security: Additional Information - CBO

And always you were you wrong!

 

[Kosh]

No big deal. Your taxes will be raised to pay back Social Security all the money that was borrowed.

The standard progressive response. "Just raise taxes"

And your answer is what?

To not spend more than you take in?

Pretty simple except those that believe in the far left religion..

 

[chikenwing]

Bush's "solution" was to privatize Social Security. Let the rubes hand their money over to Wall Street so Wall Street can invest it in those wonderful CDOs and CDSs. BWA-HA-HA-HA!

Moving Social Security from defined benefit to defined contribution is a Wall Street predatory wet dream.


The best and simplest solution is to index the eligibility age to 9 percent of the population. Raise the eligibilty age to 70 now, then index to 9 percent of the population going forward.


When Social Security was enacted, only 5.4% of the American population was over 65. When Medicare was added in 1964, 9 percent of the population was over 65. Today, more than 13 percent of Americans are over 65. A larger and larger portion drawing from the fund with less and less contributing is an unsustainable track.

We are living longer than our ancestors. We should be working longer. Common sense.

The best and simplest solution is to index the eligibility age to 9 percent of the population. Raise the eligibilty age to 70 now, then index to 9 percent of the population going forward.

Tell that to a brick layer or other that do hard physical work,not a really good fix.

We poor billions into wall street weekly through 401k,but don't hear any crowing about that,and its the same thing.

We should be able to have a choice,just as Bush wanted,you want out you can,if not you stay with the gov run program,Bush never said it would be all private.

 

[martybegan]

No big deal. Your taxes will be raised to pay back Social Security all the money that was borrowed.

The standard progressive response. "Just raise taxes"

And your answer is what?

Barring a time machine to prevent the government from spending the "trust fund" money and replacing them with worthless IOU's?

The only real solution is extending the retirement age and cutting benefits.

 

[NYcarbineer]

Looking in the mirror again when you posted that? or still believing the far left talking points and propaganda?

No I'm right and you're wrong.

The Social Security Trust Fund has been loaned to the general fund since 1940:

Social Security History

You can scroll down to Table 2 for the numbers.

Typical far left would much rather see the world burn than admit they are wrong!

Why do you post links you really don't even read?

CBO projects that under current law, the DI trust fund will be exhausted in fiscal year 2017, and the OASI trust fund will be exhausted in 2033.

The 2013 Long-Term Projections for Social Security: Additional Information - CBO

And always you were you wrong!

Listen:

You claimed this:

First off the first dip in the SS trust fund was done by Nixon to pay for the Vietnam war.


For which you provided no supporting evidence.

I gave you a link that proves that Trust Funds were loaned to the federal government in 1940.

I was right you were wrong.

 

[Harry Dresden]

They don't have to pay it back until such time it might be needed. In the meantime the money makes interest.

they should not be able to touch it.....not i cent....

Do you know how ignorant that is? The Trust Fund earns 100 billion a year in interest because it's invested in US securities,

in fact, the Trust Fund used some of that interest in making payouts the last 2 years to supplement incoming revenue,

so that the Trust Fund balance didn't have to be depleted.

its only ignorant to you because you feel that Politicians can handle your money better than you can....sorry i dont....that money should not be used for them assholes to "borrow" for their little projects.....it should be used for retirements and disability and thats it....including any interest it makes....

 

[martybegan]

they should not be able to touch it.....not i cent....

Do you know how ignorant that is? The Trust Fund earns 100 billion a year in interest because it's invested in US securities,

in fact, the Trust Fund used some of that interest in making payouts the last 2 years to supplement incoming revenue,

so that the Trust Fund balance didn't have to be depleted.

its only ignorant to you because you feel that Politicians can handle your money better than you can....sorry i dont....that money should not be used for them assholes to "borrow" for their little projects.....it should be used for retirements and disability and thats it....including any interest it makes....

and where does that interest being paid out come from???

Are your really this dense?

 

[NYcarbineer]

The standard progressive response. "Just raise taxes"

And your answer is what?

Barring a time machine to prevent the government from spending the "trust fund" money and replacing them with worthless IOU's?

The only real solution is extending the retirement age and cutting benefits.

Question #1

If the IOU's are worthless, how was the Treasury able to make interest payments the last 2 years?

 

[NYcarbineer]

they should not be able to touch it.....not i cent....

Do you know how ignorant that is? The Trust Fund earns 100 billion a year in interest because it's invested in US securities,

in fact, the Trust Fund used some of that interest in making payouts the last 2 years to supplement incoming revenue,

so that the Trust Fund balance didn't have to be depleted.

its only ignorant to you because you feel that Politicians can handle your money better than you can....sorry i dont....that money should not be used for them assholes to "borrow" for their little projects.....it should be used for retirements and disability and thats it....including any interest it makes....

So where should SS put the money?

 

[martybegan]

And your answer is what?

Barring a time machine to prevent the government from spending the "trust fund" money and replacing them with worthless IOU's?

The only real solution is extending the retirement age and cutting benefits.

Question #1

If the IOU's are worthless, how was the Treasury able to make interest payments the last 2 years?

From the general fund.

 

[NYcarbineer]

Barring a time machine to prevent the government from spending the "trust fund" money and replacing them with worthless IOU's?

The only real solution is extending the retirement age and cutting benefits.

Question #1

If the IOU's are worthless, how was the Treasury able to make interest payments the last 2 years?

From the general fund.

Ok, so the bonds are paid off just like the federal government pays off all of its bills and bonds.

The Trust Fund is NOT made up of worthless IOU's, like the other poster, and many others, have said.

 

[martybegan]

Question #1

If the IOU's are worthless, how was the Treasury able to make interest payments the last 2 years?

From the general fund.

Ok, so the bonds are paid off just like the federal government pays off all of its bills and bonds.

The Trust Fund is NOT made up of worthless IOU's, like the other poster, and many others, have said.

They are not worthless, however they are not investments either. When you sell a trust fund to people, you are selling the concept of a set of money that is there, gaining equity via investment. Here there is no investment, no gain of capital or worth. it is merely transferring money from 30 years ago to today via the current taxpayer. Mind you this is above and beyond the money we ALREADY PAY into SS via payroll deductions.

What happened is what happens every time progressives want to spend more money then they have. They punt the costs down the decades and make someone else deal with them.

 

[bripat9643]

Question #1

If the IOU's are worthless, how was the Treasury able to make interest payments the last 2 years?

From the general fund.

Ok, so the bonds are paid off just like the federal government pays off all of its bills and bonds.

The Trust Fund is NOT made up of worthless IOU's, like the other poster, and many others, have said.

the general fund contains proceeds from taxpayers. There's no money being saved there. Another way to say how SS beneficiaries were paid off is that current taxpayers paid them off. That's how every dime of SS benefits has been paid and will be paid. The bonds play no part in the process except to fool gullible rubes like you.

 

[bripat9643]

Question #1

If the IOU's are worthless, how was the Treasury able to make interest payments the last 2 years?

From the general fund.

Ok, so the bonds are paid off just like the federal government pays off all of its bills and bonds.

The Trust Fund is NOT made up of worthless IOU's, like the other poster, and many others, have said.

The general fund contains proceeds from taxpayers. There's no money being saved there. Another way to say how SS beneficiaries were paid off is that current taxpayers paid them off. That's how every dime of SS benefits has been paid and will be paid. The bonds play no part in the process except to fool gullible rubes like you.

 

[NYcarbineer]

From the general fund.

Ok, so the bonds are paid off just like the federal government pays off all of its bills and bonds.

The Trust Fund is NOT made up of worthless IOU's, like the other poster, and many others, have said.

The general fund contains proceeds from taxpayers. There's no money being saved there. Another way to say how SS beneficiaries were paid off is that current taxpayers paid them off. That's how every dime of SS benefits has been paid and will be paid. The bonds play no part in the process except to fool gullible rubes like you.

The bonds play a huge part because they generate interest. That's why they're called an investment.

 

[NYcarbineer]

There never was a Social Security "trust fund". Politicians can't stand to see money lying around so they stole from social security from the beginning. LBJ made it official when he ordered FICA taxes to be placed in the general fund.

That never happened. Payroll taxes have never been 'placed' in the general fund. The only way they can go into the general fund is if the US government borrows them.

 

[g5000]

People scream like welfare queens at the thought of working just five years longer than their ancestors who died decades younger than they will.

Funny, isn't it?

Gimme, gimme, gimme. Make that guy over there pay for it. Or borrow it from China. Just GIMME!!!