Guest Post: The Social Security System Is Already Broke

Tyler Durden's picture

Submitted by Jim Quinn from The Burning Platform

Free Shit "Disabled" Army Massing Its Forces

Whenever I hear a liberal MSM talking head say that Social Security is not a problem, I want to throw something at the TV. Obama and Romney both declared the Social Security system sound. They lied to the American people that it will only require minor tweaks to keep it solvent for a hundred years. Liberals hate math. The Social Security System has an unfunded liability of $18 trillion. This means our politicians have promised $18 trillion more than they can possibly pay out. I guess $18 trillion is trivial to a liberal minded person like Krugman or Obama. Lucky for them that 99% of all Americans don’t understand what unfunded liability even means. The chart below gives the gory details. The Social Security system had a negative cashflow of $47.8 billion last year, after running a $48 billion deficit the year before. You may notice that 77% of this deficit was created by the SSDI program, where the depressed masses gather after their 99 weeks of unemployment run out. Do you have a headache? Are you depressed because liquor stores don’t accept food stamps? Did you pull a muscle getting on your government provided rascal? Trouble hearing your Obama phone? Then you are eligible for SSDI.

The funniest line item on the chart is the Assets at End of Year line, which shows the Social Security system having $2.7 trillion. Even using this funny number, the SSDI will be broke in three years. Al Gore told us this money was in a lockbox. They take it out of your paycheck and put it into a fund, waiting for you to retire and collect what you’re owed. Right? Wrong! If you tried to observe the vault with the $2.7 trillion on deposit, you’d be looking for a long long time. You see, the noble politicians in Washington DC took the $2.7 trillion and spent it on undeclared wars overseas, ethanol subsidies, investments in Solyndra, turtle crossings, tax breaks for hedge funds, TARP, bailing out AIG, subsidizing GM, $800 billion stimulus packages, cash for clunkers, homebuyer tax credits, predator drones, DHS, Sandy relief and thousands of other buckets of shit. There are nothing but IOU’s in the vault. The $2.7 trillion is long gone. The U.S. government had to borrow $47.8 billion to fund SS last year. They will have to borrow over $50 billion this year. There will be 10,000 per day turning 65 for the next decade. The borrowing will rise exponentially. If the $2.7 trillion actually existed, why would we need to borrow?

The trust funds are required by law to hand over all surplus revenues to the Treasury and the Treasury then provides “special issue” non-marketable bonds—essentially electronic IOUs—to the trust funds in return for the cash. These “IOUs” become part of the national debt. When the Treasury pays “interest” that increases the value of the Social Security Trust Funds it does so by increasing the number of IOUs it owes the trust funds. When the Social Security program runs a net cash flow deficit, as it has in the last three fiscal years, the Treasury needs to borrow cash from the “public” to keep the program funded.

Does this look like a trend that is going to reverse itself or level out with 10,000 Boomers turning 65 years old every freaking day?

These costs will be exceeding $1 trillion per year in the near future. Meanwhile, the number of workers per retiree will continue to fall as it has for decades. In 1945 there were 42 workers per retiree. In 1965 there were 5 workers per retiree. Today there are less than 2.5 workers per retiree. There are only 1.6 full time private workers for every one retiree. With Obamacare working its magic of destroying jobs across the land, there is much less revenue going into the Social Security System. The system is unsustainable and ignoring the problem will not make it go away.

A recent article on Bloomberg below barely scratches the surface of the massive fraud going on in the SSDI program. Those who think we owe them a living are faking disabilities by the millions. The number of annual applications were flat at 2.1 million per year between 2004 and 2007. They now exceed 3 million per year, as the Obama administration has actively attempted to get more people on the dole. In a matter of a couple years, there were suddenly 40% more people getting disabled. Amazing!!!

Shockingly, as 1.4 million people have been kicked off the 99 week unemployment rolls, the number of people applying for SSDI skyrocketed. Just because the scumbags on Wall Street and in the rest of corporate America commit fraud on a massive scale does not mean we should look the other way when lowlifes in our community do the same thing on a smaller scale. The working middle class pays the bill for the cost of both frauds. More than 90% of all the people who go onto SSDI never go back to work. This program was supposed to be short term until people could recover and go back to work. There are now 8.83 million people so disabled, they supposedly can’t work. There are only 12 million officially unemployed people in the country. The government is so incompetent, they barely check the applications for SSDI. Anyone with an ounce of brain power (this disqualifies anyone on MSNBC) knows that at least 50% of the people on SSDI are capable of some form of employment.

The Social Security system is already broke. The money is gone. Pretending all is well is for fools and there are millions of them in this country. If someone within the leadership of this country was honest with the American people we could fix the Social Security system. A combination of age adjustments, means testing, and reconfiguration of income levels subject to the tax could make it viable. Too bad Washington is inhabited by snakes, scumbags, liars and knaves. Corrupt lowlife politicians, lying liberal media whores, and a delusional populace will ignore the Social Security problem until it becomes a crisis of epic proportions. Then they will propose wrong solutions and implement them badly. Some things are easily predictable.

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A Lunatic's picture

Bullish for cat food.........

VisualCSharp's picture

This is all irrelevant. Social Security "revenue" is nothing but a tax. The government chooses to then make Social Security payments. They can stop making payments altogether if they'd like and keep the tax.

CH1's picture

You have to wonder how long productive people will simply take it as they are robbed and shit upon.

Is there no limit to the abuse they will take?

No point at which they stop worshiping their abusers?

francis_sawyer's picture

You're a fucking hypocrite...

~~~

It's all fucking JOOBUX from here on forward [as francis_sawyer has said 1,000,000x before]... YOU'RE the fucking [self described] 'ABUSER' worshipper... I hope you're proud of yourself...

I'm out... I think I'll start a 'catfood' COOKING blog...

CH1's picture

I'll make sure I pray for you, sawyer... to the God of the Jews.

francis_sawyer's picture

Do whatever the fuck you want... I'm neither interested in your prayers [nor your prayers AGAINST me]... Neither moves the needle of what's going to happen...

flacon's picture

The whole "Jew" thing was dismembered by Monty Python a long time ago (replace the word "witch" with the word "Jew", and replace the "angry mob" with "francis_sawyer"  and one can see how absurd it all is):

 

Monty Python and the Holy Grail - Burn the Witch!!!!!

http://www.youtube.com/watch?v=UTdDN_MRe64

 

 

 

LetThemEatRand's picture

Jews, Muslims, Catholics, Buddhists, ad nauseam.  All part of human tribalism.  95% of people who associate with a religious flavor were born into a family that practiced it.  Most of that 95% are quite sure they have it right and everyone else is going to be sorry they don't.     Either way, it's all part of being human and why the pure "free market" crowd has it wrong.  People will never just get along and work it out under a system of "law."  The large majority of people want a ruler who makes the law, whether it is simply a human (think Royalty worship) or a human who says he/she communicates with a cloud dwelling spirit, or a human who says he/she is a clowd dwelling spirit incarnate, or something else.  I wish it were not true.  

Raymond K Hessel's picture

Honestly, stop feeding the trolls.

For all we know, it's Cass Sunstein trying to goad people into emotional responses that he later put in a MSNBC newscast about how anti-semitic everyone at ZH is and that it is reason to hate us.

Just ignore them.  

Except for MDB...he cracks me up.

LetThemEatRand's picture

I disagree.  Hatred of other humans on the "wrong" team is very much part of the dialogue here, unfortunately.  For example, this article is somewhat negative about "liberals," yes?  You see it as a discussion of social security.  I see it as a condemnation of a political point of view.   The MIC/PIC consumes far more than SS.

A Nanny Moose's picture

You still seem trapped by the L/R paradigm. The issue is not left or right. It is not Social Security, M2IC, or PIC. The real issue is the idea that force is OK as long as you are someone in a position of authority.

GetZeeGold's picture

 

 

 

Lots of people sure come Down on the tribe of Judah....but they're only 1/12 of Israel.

 

Why do those other guys get a pass? It's no wonder the tribe of Zebulon sits in Norway and laughs it's ass off at the rest of the world.

Bicycle Repairman's picture

The preponderance of SSI can never be bankrupt by definition.  It is a pay as you go system.  Even if the US defaults on the trust fund, over 80% of it is pay as you go.  So benefits get cut a maximum of 20%, but everyone keeps paying in their 15%.

SSI isn't going anywhere.

Thomas's picture

This is hyperbole. All Geithner has to do is produce 4 platinum Krugmans ($5 trillion dollar denomination coin) and deposit them at the Fed, which leaves $2 trillion for beer and other party supplies.

malikai's picture

I think everyone should just quit their job, go on disability, welfare, and take out a few hundred grand in student loans. If you really want to watch this thing break, "get to work".

Also, I didn't see welfare queens listed as "domestic extremists" in the DHS manual.

DaveyJones's picture

it was "broke" the moment it was designed..but that's a different definition 

oh, and if lawyers ever did this with a "trust fund" they'd be disbarred and jailed

(unless they work for a bank) 

Transformer's picture

At least you explained how congress stole the money this time.

PoliticalRefugeefromCalif.'s picture

One standard to discover if it's a valid strategy is what happens when someone in private enterprise attempts the same thing- see how far you get setting up a steal... erh, I mean pay as you go supplemental retirement plan spending the entire revenue stream faster than it comes in?

Ft. Leavenworth here I come. 

Legislators just craft our legislaton, they should not be bothered to follow legislation.

.."every decent man is ashamed of the government he lives under" HL Mencken

 

LMAOLORI's picture

Agree.

 

The IOU's you hear about are no different then the IOU's held by anyone who loans money to our government including foreign countries, private pension funds, money market accounts, etc. The Social Security Trust Fund isn't broke our government is.

 

There are plenty of real Welfare programs but Social Security isn’t one of them. Another fallacy the majority of writers and politicians are promoting is that Social Security adds to the deficit. Common sense should tell anyone that what adds to the deficit is unfunded spending or spending by borrowing. The interest paid on the debt is the direct consequence of those actions not the other way around!

 

Put yet another way if our government borrows from a private entity to pay some of the special issue treasury bonds the Social Security Trust Fund is owed the deficit hasn't grown the debt and the interest paid on it has simply changed hands from one creditor to another.

bunnyswanson's picture

An atheist can still be a Jew.  This is about taking responsibility for the actions of your peers.  It is something the American people will know one day.  The legacy

http://euce.org/eusa/2011/papers/9h_meunier.pdf The Dog That Did Not Bark:

..."The crisis has revealed American excesses and negligence over the years, from Madoff to subprimes, during which the US has given economic lessons worldwide instead of starting to clean up at home. The crisis and the immediate response to the crisis have certainly provided ample ammunition to those denouncing the hypocritical streak of the US.

"The United States, and let me emphasize, the United States is solely to be blamed for the financial crisis. They are the cause for the crisis, and it is not Europe, and it is not the Federal Republic of Germany" (Kucharz, 2008) and "This isn’t being impolite or undiplomatic, it’s just the facts. The origin and center of gravity of the problem is clearly in the US" (Wall Street Journal, 2008).

If one is to believe Reinhard Buetikofer, former leader of the Green party in Germany, this fingerpointing was designed not only to assess the real blame but also to absolve leaders from responsibility: "For a while, a large segment of the public considered all this as innocent German banks caught in an American mess…

Only recently has the public started to understand how much we are involved, and how much of this has been our doing, too" (Webb, 2008).

One can therefore formulate three hypotheses about the conditions under which the financial crisis can be expected to affect anti-Americanism.

First, the crisis will more likely enhance anti-Americanism in countries with a prior baseline of anti-Americanism and where this pre-existing reservoir of arguments has been mostly of the sovereignist, social and liberal kind (by opposition to the radical, elitist, and legacy kind).

Second, the crisis can be expected to enhance anti-Americanism in countries whose economy was most directly affected by the crisis. The salience of the crisis can stir up emotional reactions and increase negative individual attitudes towards the US.

Third, the crisis will more likely enhance anti-Americanism in countries that have experienced national elections in the year following the outbreak of the crisis. In order to be reelected, incumbents will try to fingerpoint and deflect the blame towards the US, and in order to be elected, challengers will associate the incumbents with the US.

...however, the eurozone subsequently experienced a crisis of their own for which the US could not be blamed directly and which featured even more clearly than before the new economic and financial prominence of China, which for some of the most indebted countries acted as a white knight.

We are not in a "post-American" world yet, but one can question whether, when it comes, it will be accompanied by a "post-anti-American" world. On the one hand, the rationale for an anti-American bias fostered by fear and resentment of American hegemonic power will wane as American power wanes. This will be more pronounced in some regions than others, depending on how deep anti-Americanism was before, how much the US is still perceived to be meddling in local affairs, and how exposed they have become to China.

On the other hand, even though the financial crisis did not lead to a surge in the traditional types of anti-Americanism, it may have precipitated the emergence of a new type characterized by contempt and pity for a weakened giant, which may eventually substitute the sovereignist and elitist types."

urwright's picture

is it legal to write so long here?

article says it is only going to get worse? i just opened a store front in a tragically hip upand coming blighted community. the corner liquor store sells to the homeless alcholoics and they even opentheir containers just outside the store.  this is the nightmare - the supposed shit storm that comes when you cut these addicts off - you have no idea how much i look forward to respondi g aggressively to the aggression and how i know that pain would so much shorter than the fingernails-on-the-chalkboard-chain-and-ball world of worthlessness being a way of life that looks as if it will never end

right now is the nightmare - anything that changes it - ANYTHING - is a blessing

even if it changes when the 20% (who make everything for the 80%) are stretched to their limit and are the slaves - the culling of the heard will be ike a shower for those of US who feel like doing anything in business today is like walking through a shit storm 10 ft deep.

no usury on currency creation

no government shall ever borrow

iamslattery

A Nanny Moose's picture

More horseshit excuses for moral relativism wrapped up in Appeal to Popularity. Free Marketers don't have it wrong, the majority does. The majority will have to agree to disagree, until the majority agrees that the free market crowd are right. If people want to be told what to do, why do they spend so much time/energy evading legal chicanery?

While I don't expect it in my lifetime, people will eventually arrive at the logical conclusion that Statism is nothing more than another religion. Regard the word exercise below.

High Priest: I am a servant of God. God speaks through me. Only I can communicate the will of God..

Representatives: [Replace the word "God", with the phrase, "The People..."]

Because the majority believes coercion is OK, doesn't make it OK, nor does it excuse failures by those who know better, to attempt to enlighten and persuade people of the universal preferability of the non-aggression principle. Your argument presumes that humans cannot evolve. History however, paints an entirely different picture. Humans have become less violent, and more free as time has progressed (The USSA, being a notable exception.)

StandardDeviant's picture

As a long-time Rand reader, and self-identified Objectivist, it's hard to press that +1 button for you.  But in my darker moments (for which there is plenty of occasion these days), I suspect that when you say "[t]he large majority of people want a ruler", you do have a point.

Here in the UK, for instance, while the society is refreshingly secular, it's astonishing just how many people, even the supposedly right-of-center Conservatives, absolutely worship the nanny State.  And I do mean worship: Just look at our bizarre Olympic opening ceremony, complete with literal nannies dropping from the sky, and paeans to the sainted NHS.  Whatever the French and the Germans might say about "Anglo-American capitalism", there's no danger of a proper Randian laissez-faire free market taking hold here, I assure you.

The one thing with which I'll take issue is that, while the desire for a parental ruler or ghost may be "part of being human", so are many other atavisms that we've managed to mostly put behind us.  It doesn't mean that we can't or shouldn't strive for better.

Cathartes Aura's picture

if one adopts the label of their state - Brit-ish, Ameri-can, etc. - then that label means they're owned, it's not the other way around, the "people" are not the State, despite all the pretending otherwise.  if a citizen dies, does not the State continue?

if one votes, then one believes in the State.   if one volunteers to fight other States on behalf of, then one believes in the State.

what is "ruled" is the mind, the perspective on the world - and it is fed daily, with divisive crap meant to entertain and thus feed the State living in the Mind.

Popo's picture

I'm not the least bit conspiratorial and even I'm starting to smell a rat with all this "Joo" posting here. This smells like standard CIA message board disruption at work.

George Washington did a blog post a while back on ways the Feds disrupt message boards through thread jacking and trolling, and this bears ALL the signs of an intentional operation.

Note the topics that seem to get infected with "Joo" posts. It ain't HFT or Euro issues...

If anyone has a link to that GW post, it would make a good follow up to any more of this intentional thread disruption.

LetThemEatRand's picture

Sadly, it requires no government conspiracy to bring out the clowns.

Popo's picture

Actually, the whole theory behind thread disruption rests on the extreme ease of bringing out the clowns.

All it takes is 2 or 3 "Joo" posts and suddenly no one's talking about the social security crisis.

Mission accomplished, with the help of the resident idiots.

Folks, if you want to talk about Joos, do it to your hearts content anywhere else on the Internet. But don't let the actual issues get snuffed by some asshole in a cubicle in Langley.

AgAu_man's picture

Ding, ding, ding, ding. +64.

I'm beginning to get annoyed with the Other way this site is being diluted: with noise, drivel, therapeutic (?) venting that adds Zero value to ZH.

Beyond the articles themselves, the comments can be ignored more and more.

Not sure what the Tylers make of this, or what they intend to do about it.

And the more mature, serious, civil and intellectual elements need to marginalize the 'wildweed', as their contributions also get lost in the noise.
As I said in an earlier post: Need better SNR. More Signal, less Noise.

Dr. Engali's picture

It is starting to get annoying. I used to enjoy a lot of the commentary and discussions in the past as much as I enjoyed the articles. Now I find myself scanning through most of the commentary looking for specific people. All the other drivel is just a waste of time. I too don't have any idea what the Tyler's will do if anything , and I don't know for sure if I want them to. I have seen some people get ejected for reasons that made me scratch my head, while at the same time I see the same vitriolic statements come from the same group of people and nothing happens. The Tyler's wrath certainly seems random.

OpenThePodBayDoorHAL's picture

SO TRUE. TYLER(S) YOU NEED TO MODERATE YOUR SITE LIKE YVES DOES AT NAKED CAPITALISM OR THE SITE IS GONNA DIE OFF.

duo's picture

the new game will be to blame the Jews in the comments section before francis-sawyer does.

StandardDeviant's picture

Agreed.  They could start by filtering posts which use TOO MANY CAPITALS.

Skateboarder's picture

Trolls need food to troll. Even acknowledging their presence feeds the noise. Today I said "shoo, gutter-troll," and that's the best I'll give a troll. Tell 'em to fuck off and leave it at that. We have better things to do than converse with buttheads.

oldman's picture

Ding, ding, ding-----

The Tylers know exactly what they are about:

"The working middle class pays the bill for the cost of----"

Show me the "working middle class" that used to be called the "working class"---

Since there is no longer a "middle class" in the u s, the brits saddle us with the "working middle class" to get more trolls to clamor for their rights instead of showing any sort of solidarity with other poor fucks who are in the same boat.

Oh, make no mistake about it----these Tylers know exactly what they are about

The fascist assholes            om

Winston Churchill's picture

What is this middle class you speak of ?

There are people that have to work to live,and those that don't.

I was born and raised in the UK, and was shocked by how much worse

the phoney class divide is here in the US ,than there.

Raymond K Hessel's picture

I've said it many times in other posts.  The middle class is a sub-culture, like vegans or goths.  It's a value system that differentiates you from other people in the community.  

Peachfuzz's picture

I've often wondered if they'd let only site donators to comment on the articles how that'd work. If somebody really has an inflammatory point that they want to make then I would at least know it was keeping ZH's lights on. I get tired of the b.s. comments too, but to find a site this information dense and at such a price I'm willing to dig through dirt to find gold.

oldman's picture

@Peachfuzz

Me, too, babycakes

But free speech is still the rule here, so when it sounds fascist or authoritorian,(I am against both)

I'll call even the all-holy Tylers on their shit            om

Stuck on Zero's picture

Some people equate "blog" with "soapbox."

 

PhysicalRealm's picture

How to Spot - and Defeat - Disruption on the Internet
The 15 Rules of Web Disruption
http://www.washingtonsblog.com/2012/08/the-15-rules-of-internet-disinformation.html

COINTELPRO Techniques for Dilution, Misdirection and Control of an Internet Forum
The Gentleman's Guide to Forum Disruption

http://www.washingtonsblog.com/2012/10/cointelpro-techniques-for-dilution-misdirection-and-control-of-an-internet-forum.html

 

 

Ayn NY's picture

The problem is that there are some great articles with information that should be posted everywhere, however all the antisemetic comments prevent a lot of people from linking to the articles or posting them on Facebook. I know I don't for that reason alone. I'd also hate to think that by allowing these people to continue saying such vile things that the Tyler's might have the same views. It is something I struggle with when reading this site.

CrockettAlmanac.com's picture

Ayn Rand told me that I don't have to love everybody and that there ain't no God no how. That's my cult and I'm sticking to it.

LetThemEatRand's picture

Careful.  A lot of her devotees assume she was really  [__________________] (insert religion)

CrockettAlmanac.com's picture

That's one big matzoh ball you left hanging out there.

LetThemEatRand's picture

Let he is without bad soup throw out the first matzoh ball.

sun tzu's picture

Nice canard. Most of her devotees are libertarians. Since you brought it up, why do you care what religious she was?