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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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Sun, 01/13/2013 - 09:38 | 3148581 awakening
awakening's picture

'The most rational solution to this problem would be to make all income subject to social security taxes.'

Why bother, just have Uncle [Sam] Bernanke print out the fiat needed for those social security programs.

All these divide and conquer bullshit articles about taxes mean diddly squat with regards to the big picture. Taxes are merely another millstone around your necks (one unlike the rat race [mortgage] that is escaped ultimately and only by death) to keep you all running in circles within their fiat monetary system (stockpiling PMs and other possessions pisses them off big time because it is simply not theirs to control).

It just so happens that a large percentage of the persons that perpetuate this ponzi (remember, money is debt and needs to be paid back with non-existent interest) share a Jewish characteristic worthy of thought (ignoring the other issue regarding laws in several countries against those that dare to question the Holocaust; if that event was so shocking and as real as the educational propaganda [hmmm bit of a miscalculation, 6 million down to 1.5 million, ignoring the gypsies and other 'indesirables'] fed through the educational system presents then why the need for many countries to have such laws enforced).

But by all means, scream at the TV about the 'terrorists' (the new 'reds under the bed') or any other boogieman of choice and/or where your taxes are going and I'll keep trying to figure out how since 1971 people could waste so much blood, sweat, tears and time over shitty pieces of printed paper/polymer and worthless cupronickel coins.

Fuck you very much, Bernanke et. al.

Sun, 01/13/2013 - 03:14 | 3148429 AGuy
AGuy's picture

"Bush would not have been elected a 2nd term, Iraq/Afghanistan wars would not have been undertaken, the generous tax cuts at the same time, the collapse of the housing industry, the 2008 stock market crash, the job loss amounting in the 10s of millions from the outsourcing of now monopolized manufacturing, the banking bail out."

Bush won in 2004 not because of 9-11, but because of the Medicare prescription drug coverage, the $300 checks (economic stimulous), and the Greenspan Put (dropping rates to 1% causing a credit bubble.  Bush's apponent, Herman Munster, ran a presidental campaign like Dukakis, or a Bob Dole, and pulled an "I invented the internet" Gore, with his "I voted for it, before I voted against it".

"Iraq/Afghanistan wars would not have been undertaken, the generous tax cuts at the same time, the collapse of the housing industry, the 2008 stock market crash, the job loss amounting in the 10s of millions from the outsourcing of now monopolized manufacturing, the banking bail out."

Most of was already in progress before 2004. We entered Afghanstan in 2001, Iraq invasion began in 2003, Bush Tax cuts happened in 2001 or 2002. Outsourcing began in the 1990s (even earlier as US manufacturing jobs shifted to "no Pollution laws", and nearly free labor China and India sweat shops). The Internet also changed the US economy into a global economy since datacom permitted rapid transfer of knowledgebase labor anywhere nearly instantously making it very easy for business to source labor overseas). By 2002 the US economy was doomed since the Dot-com bubble fed by the Greenspan Y2K Put had already sent the economy into a destructive tail spin (Credit bubble, Gov't spending problems, etc).  Bush's Push into Iraq was to (errant) was to secure sources of cheap convential oil (ie the 1999 Halliburton-Cheney Speech that America needs to secure another Iraq to keep the US economy running which Bush did literally). Bush was aware of problems with global oil production and used terriorism as the road to justify securing convential Middle East Oil. If 9-11 was an "inside job" than it was started by Clinton since the Hijackers and others involved in it, started working on it back in 1998. Bush could not have planned the 1993 World Trade Center bombing (also while Clintion was the Pres)

If Al "$5 Gas" Gore had been elected, the US would face the same problems today, and the economy would have been much worse if Gore was able to push his anti-fossil pro-global warming agenda as policy. Nothing the US can do will stop China and India consuming mountain ranges of Coal and other Fossil Fuels. Under Gore-topia, instead of Oil tankers coming to America, they would have gone to India and China.

As far as "Generous Tax Cuts" Who the hell wants to pay a bunch of bureaucrats to tell us what to do and how to live. All they do is take your tax money and give it to their friends (ie subsidies, Miltary\Industrial Complex). You say you don't want a police state, but you don't seem to mind of giving them the money to make the country into a police state. I suspect what you really have a bit of freudenschade, where you want to see people get taxed as much as possible.

 

 

Sun, 01/13/2013 - 11:30 | 3148685 StandardDeviant
StandardDeviant's picture

"Schadenfreude".  But I kind of like your typo, too.  Will use it the next time I have a proper hangover.

Sun, 01/13/2013 - 13:09 | 3148896 AGuy
AGuy's picture

Hey, it was 2 AM!

Sun, 01/13/2013 - 16:23 | 3149257 CrockettAlmanac.com
CrockettAlmanac.com's picture

Hey, hey, my, my. Google never sleeps.

Sun, 01/13/2013 - 07:57 | 3148536 Winston Churchill
Winston Churchill's picture

And your posts discredit others that believe 9-11 was an inside job.

Thats the whole purpose though, isnt it ?

All you are doing is to turn awau others that might be persuadable to

the truth by your rants.Also the real purpose of them.The leg men in 9-11 are long dead,

so we will never know the actual doers.Loose ends tied.

SS is broke,its unableto pay its bills when due,without borrowing.Bankrupt.

Trading whilst insolvent.Bust,whatever you want to call it.and the sooner

people accept it the better.

Sun, 01/13/2013 - 21:29 | 3149697 Optimusprime
Optimusprime's picture

Excellent post.  Thanks.  And food for thought for all those knee-jerk philo-semites whose laughable claim to a moral "high ground" needs to be seriously re-examined.

Sun, 01/13/2013 - 05:47 | 3148505 John_Coltrane
John_Coltrane's picture

Yep, its as off-topic as reading Mein Kampe where in every other paragraph Hitler introduces some problem and then states:

"and thus we return to the problem of the jews"

Here's an example of the style: 

"And what are we to make of this new Jewish science of quantum mechanics and special relativity?"

"...And thus we return to the problem of what to do about those Jews..."

I highly recommend it for a good hoot-I'm guessing many Jew haters haven't even read it.  Shame on them-they'll get some good ideas for future comments.

Mon, 01/14/2013 - 11:53 | 3150660 Ayn NY
Ayn NY's picture

I'm sure they are well versed. I've even seen the Protocols quoted here.

Sun, 01/13/2013 - 04:55 | 3148496 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

yes "bunnyswanson" but what in the hell does any of that have to do with Social Security?

GGYOFB

Sun, 01/13/2013 - 21:33 | 3149704 Optimusprime
Optimusprime's picture

To be registered with a social security# is to become liable for the debts incurred in our debt-based monetary system.  So much has been made clear in this blog more than once. Who do you think runs the central-banking octopus?  Native Americans? 

Mon, 01/14/2013 - 11:50 | 3150646 Ayn NY
Ayn NY's picture

The really scary thing is that 17 people voted you down and only 8 gave you an up vote - we will never break free of our primitive nature - how sad.

Sun, 01/13/2013 - 03:33 | 3148444 Parrotile
Parrotile's picture

If any "future war" involves our unnecessarily large global stockpile of various weapons of mass destruction (the NBC ones), I'd imagine the "next attempt" will be quite THE most successful, not just for any particular race, but for us all.

Always thought co-operation, and respect for ALL others was the best solution to ALL our problems. Seems I was rather mis-informed.

Sun, 01/13/2013 - 03:40 | 3148447 CrockettAlmanac.com
CrockettAlmanac.com's picture

 

Always thought co-operation, and respect for ALL others was the best solution to ALL our problems. Seems I was rather mis-informed.

 

You were right and most people would agree with you, at least when their strings aren't being pulled. But individuals are no longer actors in the world. We let the elite class "represent" us as we watch from the cheap seats. It's a system built upon disrespect for individual human beings.

Sun, 01/13/2013 - 06:54 | 3148528 bunnyswanson
bunnyswanson's picture

Zionism is a private club.  Not everyone can be a member.  Negotiations?  Surely, you jest.  This has nothing about getting along with each other.  It is a business plan. 

Sun, 01/13/2013 - 10:55 | 3148639 Raymond Reason
Raymond Reason's picture

If you've ever spent time in Israel, you would know that "chutzpah" is considered the highest virtue to be cultivated.  What i learned, outside of the American fishbowl, and what most Americans don't understand is that prior to ww2 there was a great schism among world jewry, between zionists and anti-zionists.  Hitler's struggling political party, National Socialist (NA), found their power by partnering with the Zionists (ZI) and became the NAZI party, ultimately dealing the anti-zionists a blow they would never forget. 

But as far as hating an individual because if his/her group...Well, the Mormons copied the Jewish nepotism technique, and while benefiting its member's business and social network while pretending it doesn't, it breeds disdain from gentiles living in the same community.  And unfortunately, the greater world sees Americans as zionist banking partners and beneficiaries, lumping us into a category that most of us don't want to be lumped into, but have derived benefit from nevertheless. 

Sun, 01/13/2013 - 11:39 | 3148699 hooligan2009
hooligan2009's picture

ummm...i agree that any "holier than thou" minority sect attracts scorn from every other minority sect...but what "derived benefit" are you referring to in the last sentence?

"they" didn't do that; the sum of all minority sects did

Sun, 01/13/2013 - 13:17 | 3148913 Raymond Reason
Raymond Reason's picture

Americans have been the Zionist's useful idiots, and are rewarded by being one step closer to the wellspring of enforced petro dollars than the rest of the world, the farthest removed bearing most of the burden of exported inflation. 

Sun, 01/13/2013 - 19:55 | 3149541 Cathartes Aura
Cathartes Aura's picture

.

Well, the Mormons copied the Jewish nepotism technique, and while benefiting its member's business and social network while pretending it doesn't, it breeds disdain from gentiles living in the same community.

indeed, "Mormons" have many behaviours in common with those named, including a version of "Zion" that allows their special members, the Temple'd ones, to refer to themselves as "Zionists" albeit of a different flavour perhaps, but certainly many secret rituals and masonic symbols are embedded in the religion.

here's a link to "answers" provided from a Mormon perspective - note the many references to Jewish history/faith.

plenty of Mormons in covert USgov. roles, from "ambassadors" to CIA, FBI, etc. - where's the new "data center" located?

Mon, 01/14/2013 - 00:40 | 3149957 Raymond Reason
Raymond Reason's picture

Interesting.  Thanks for the link!

Sun, 01/13/2013 - 13:53 | 3148966 boogerbently
boogerbently's picture

Bunny,

"So many people cannot be wrong."

We re-elected obama!?!?!

Sun, 01/13/2013 - 18:30 | 3149435 JungleJim
JungleJim's picture

Can I get that kosher ?

Sun, 01/13/2013 - 18:30 | 3149437 JungleJim
JungleJim's picture

Can I get that kosher ?

Sun, 01/13/2013 - 01:10 | 3148296 El Tuco
El Tuco's picture

When people get fed up they start to deal in cash. They avoid paying taxes whether it's sales tax or income tax. It happens all over the world. There are always two prices....check or cash. It's only a matter of time until black-markets start in the USA. People will want to avoid paying taxes or claiming income.

Isn't there an old saying "Why fuck each other when we can fuck the Guberment....."

Sun, 01/13/2013 - 02:37 | 3148395 AGuy
AGuy's picture

"When people get fed up they start to deal in cash."

Bring out your Wheelbarrow! I see lots printing coming to an FRN near you! Cash systems only works when the currency is stable, The article suggests a radical change coming to our future as the gov't must exponential increase printing to pay for the all those entitlements. Lets also not forget that most Pension plans (private and especially Public) are grossly underfunded and will need a bailout in the next 3 to 5 years.

Sun, 01/13/2013 - 01:44 | 3148342 Overfed
Overfed's picture

They all think that if they'll get a payout from the pyramid scheme, too.

Sun, 01/13/2013 - 02:46 | 3148408 Mentaliusanything
Mentaliusanything's picture

Next Democat election poster says...

Personal Mobility Devises For ALL

or 

PMD for every one (Print More Dollars)

Sun, 01/13/2013 - 12:24 | 3148797 Kreditanstalt
Kreditanstalt's picture

They'll just decide to "go on strike".  To retire, NOT open that business, not invest, live on savings, emigrate, not hire anyone...and so on.  No open revolt but no wealth generation either.

Sun, 01/13/2013 - 17:47 | 3149378 Lord Koos
Lord Koos's picture

Productive people, like politicians, traders, speculators, and bankers?

Sun, 01/13/2013 - 04:45 | 3148489 e_goldstein
e_goldstein's picture

blah blah blah blah blah blah blah

still bullish on catfood.

 

Sun, 01/13/2013 - 08:49 | 3148551 Watauga
Watauga's picture

it is correct that the government tax collectors CAN choose to stop payments.  But that is the one thing they will never do, because the vast majority of Americans are "vested" in the system, have seen their money disappear for 10 or 20 or 50 years, and EXPECT to received repayment of that money in their own old age or debilitation.  To stop payments is to risk too much.  So, the government will always make social security payments.  It will just choose to means test (stealing more from those who have contributed the most) it, short change those with pensions, change the retirement age, and so forth.  Social Security is the government's best means of control of the people.  

Sun, 01/13/2013 - 12:41 | 3148832 Stock Tips Inve...
Stock Tips Investment's picture

This is the great reform that sooner or later will have to be made. There is enough money in the economy to finance Social Security. Politically it is a very difficult issue to deal with, but as always, reality will impose.

Sat, 01/12/2013 - 23:51 | 3148176 Silver Bug
Silver Bug's picture

The Social security system is BEYOND broke, don't worry though, they will just print more fiat money.

 

http://marcfabersblog.blogspot.ca/

Sun, 01/13/2013 - 09:16 | 3148562 Landrew
Landrew's picture

You repeat BULLSHIT! Social Security is not broken! Our CONgress is broken! Social Security has a 2.6 TRILLION dollar surplus! The problem is CONgress has not budgeted for repayment! Let's put the blame where it belongs!

http://www.youtube.com/watch?v=ihUoRD4pYzI

 

Sun, 01/13/2013 - 12:41 | 3148817 Bob
Bob's picture

That's a problem for the muppets . . . and to the finance mentality, they're the guys who are damn well supposed to get screwed.

After all, they've been warned for decades we were going to rob them . . . which makes it their own damn fault. 

Hell, they robbed themselves.  Fucking parasites.

http://en.wikipedia.org/wiki/Stockholm_syndrome

http://behavenet.com/identification-aggressor

 

Sun, 01/13/2013 - 13:56 | 3148971 boogerbently
boogerbently's picture

If everyone knows that disability fraud and the other programs stealing from SS is the problem, why is the cure always to cut senior benefits and extend the retirement age?

Sun, 01/13/2013 - 14:56 | 3149077 Bob
Bob's picture

Eye on the prize.  Assuming a very negative perspective, the branch of "criticism" that focuses on stirring up outrage over disability fraud is part of the same tree as the others.  Relentless delegitimization of SS in the public mind is the over-arching strategy for all of them, apparently on the theory (whether ever articulated or not) that whatever serves one branch necessarily serves them all.

See my explanation of the real debt below.

Alternatively, people in the finance community are just like everybody else--monkey see, monkey do imitation of trend-setters.  Must be great to just say "ponzi" or "IOU" or "money spent" and get credit for financial insight. 

Not to mention that there are a whole lot of rightfully pissed off people in this country who need somebody to beat on . . . and for the mob pretty much anybody within reach will do.

It's not like the Banksters are within reach.

But understand this: The money has not yet been stolen.  The current "debate" now that cash flow has gone negative is going to settle exactly that question.   "Reforms" are nothing but an effort to dodge it. 

Sun, 01/13/2013 - 18:13 | 3149414 hllnwlz
hllnwlz's picture

Did you read the article? I am so tired of people who can't read charts or perform the most basic arithmetic. I bet you vote too, goddammit.

Sun, 01/13/2013 - 12:43 | 3148674 cranky-old-geezer
cranky-old-geezer's picture

 

 

"broke" is sufficient.   No need to add superlatives.

SSTF has no money.  Just IOUs earning interest, which is paid with more IOUs.

If benefit payouts exceed FICA coming in, the shortage is made up from borrowing, like the $48 billion borrowed last year.

Borrowing might be a little less this year since the 2% FICA tax break has been stopped.

FICA is just another tax, and SS is just another welfare program.   It looks different but it's merely accounting tricks. It's a welfare program for all practical purposes.

Being a welfare program, there is no"vestment" in a practical sense.  "vestment" implies a contract of some sort, like an annuity from an insurance company, where benefits are locked in by contract.

But there is no contract in SS, hence no sort of locked-in benefits, hence no "vestment".   Congress can change benefits anytime they want, even eliminate benefits altogether, like any other welfare program.

So yes, it's a welfare program for all practical purposes. 

It's a severly underfunded welfare program.  Borrowing $48 billion a year means severely underfunded. 

That $2.7 trillion sitting in the SSTF is just IOUs.  There's not one single dollar of cash in the SSTF.

Obama can say SS is fine because the US govt can keep borrowing money.  He just doesn't mention the borrowing part.

The $48 billion borrowed last year is part of $1,500 billion borrowed overall.  Or $1,300 billion, whatever.

If you had to borrow half your living expenses each month, would you be fine?  Would you be in good financial shape?

Sun, 01/13/2013 - 06:42 | 3148519 Wile-E-Coyote
Wile-E-Coyote's picture

Cat food prices just shot up 50%

Sun, 01/13/2013 - 12:15 | 3148783 HomeBrewPrepper
HomeBrewPrepper's picture

I know a guy (really an asshole) that gets paid disability for some reason. But he works a side job laying block. How can he work a labor intensive job like that and be on disability. I was so pissed I told a couple police friends of mine and they said there is nothing that can be done. Plus the a-hole wouldn't marry his girlfriend of 19 years and had 3 kids with because it would mess up his ssdi. An on top of that he starts drinking Busch 9 in the morning.

Sat, 01/12/2013 - 23:07 | 3148090 Skateboarder
Skateboarder's picture

Don't worry, the house of cards will have long fallen before people realize there's no payout from SS.

Sat, 01/12/2013 - 23:07 | 3148092 Arrowflinger
Arrowflinger's picture

Social Security is no security. If you just realized that, you are decades behind.

Sat, 01/12/2013 - 23:24 | 3148121 NoDebt
NoDebt's picture

A-freaking-men.  These types of "pay as you go" schemes fail when demographics turn against you.  Add in lousy growth of the economy as a whole and inbound payments tied to wages that have been stagnant for decades and.... well, you get the idea.

 

Sun, 01/13/2013 - 09:22 | 3148567 Landrew
Landrew's picture

Again you do not know what you're talking about! Social Security is not a pay as you go system and hasn't been since the Greenspan/Dole commission. Social Security has a surplus of 2.5 TRILLION dollars! Does that sound like a pay-as-you-go system to you? So either you are a troll or just ignorant of how government works! I will chalk it up to ignorance I would hate to believe you would stoop so low as to take money from the BANKSTER/TAKERS and work against we the workers of the U.S.A.!

Sun, 01/13/2013 - 10:42 | 3148623 Arrowflinger
Arrowflinger's picture

Dunno how I ended up in the company of banksters who I desire to have executed by the tens of thousands.

I posted the reality or MATH that was obvious 30 years ago. I then concluded that SS would still be around, but it wouldn't pay for much. Greenspan in 2005 testified that I was correct in 1980.

 

Sun, 01/13/2013 - 10:47 | 3148629 sunnyside
sunnyside's picture

I understand what you are saying that the ledger shows 2.5 trillion, but the holder of that 2.5 trillion that SS lent it to spent it.  It's gone.  When SS starts drawing on it (the principle), the holder (the general US fund) has to borrow it to pay it back or just use general tax revenue at the expense of other programs/gov't spending.  This is what I see.  Do you see different that I am not understanding?

 

Sun, 01/13/2013 - 13:21 | 3148875 Bob
Bob's picture

Of course it's "gone."  The govt formally borrowed it to spend.  Nobody borrows money to let it sit.  The government has a total $16T debt that represents nothing but money that is "gone."

Consider this:

Of that $16T in precious federal debt that is allegedly so desperately important for us to pay back, nearly $5T is owed to government agencies like the SSTF. 

http://www.gao.gov/special.pubs/longterm/debt/debtbasics.html

What people are really saying here--whether they realize it or not--is that the debt to the SSTF should be defaulted on. 

Otherwise we'd have to either cut spending (defense an obvious candidate) or increase taxes (nobody with money, who doesn't need SS, is interested in this.)  Or roll over the debt into regular Treasuries like we do for every other debt that the govt defers payment on.

All the bullshit about ponzies, IOU's, etc is just that.  Bullshit. 

It's a raping of the muppets that the oligarchs' toadies can participate in . . . while feeling virtuous in doing it.

Can it really be surprising that this is so popular among people in the financial industry?

Sat, 01/12/2013 - 23:09 | 3148095 zorba THE GREEK
zorba THE GREEK's picture

I guess we will have to mint a couple of trillion dollar coins

to cover SS deficits. At this rate, the mint will have to hire

more employees to make additional trillion dollar coins.

Sun, 01/13/2013 - 09:24 | 3148569 Landrew
Landrew's picture

Does a surplus of 2.5 TRILLION sound like a deficit you fucking MORON!

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