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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Jim Quinn's picture

Fuck you.

Hateful scumbags like yourself fucking hate the truth.

You're a fucking narrow minded ideolgue douchebag angry because your life is a miserable failure.

Your anger issues make you eligible for SSDI. Just call this number and you can freeload on my dime:



helping_friendly_book's picture

I don't hate everyone dickhead; just morons like you. I have no complaints about my life with which you make incorrect assumptions but, know nothing about. Again you are wrong.

You portray the worst, most uncaring, charateristics and ills of this society.

To ridicule the weak yet say nothing about the criminals who caused this chaos through no fault of the ones who have/had 25% of their take-home pay ripped from their hands every payday and get bashed by callous persons such as yourself because some person, legitimately or not, gets some of the money, paid back, they have paid in to the system all their working lives.

I have never collected any gov't benefits or as you say "your dime" because I am blessed, more fortunate than others and because of my initiative, ingenuity & determination. Plus it's not your dime anyway. I pay taxes yet I don't sit around bitching and moaning because someone uses gov't resources to survive so their children don't go hungry.

I come from a big family and know what it is like to go hungry because there is barely enough food on the table.

What do you contribute to society other than this dribble you call writing?

Your pos article reads like something written by a high school freshman. Why you get a real job? You appear to be someone who has never done an honest days work in your life?

Libel is easy. Why don't you do or say something constructive instead of bashing the poor?


Jim Quinn's picture

Your reading comprehension skills must be at a 2nd grade level. I don't give a shit about your pathetic excuse for a life.

Liberal douchebags like yourself never have facts to back up their ridiculous storylines. Your only method is attack like a rabid dog.

My article is backed up by the facts. You hate the facts, so you attack me.

I love seeing comments from people of your ilk because it reveals the idiocy and complete lack of math comprehension of angry liberals.

Thanks for playing you fucking douchebag.

helping_friendly_book's picture

You have absolutely no way to justify writing:

"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."

You make it up as you go along. Good thing you didn't actually use someones name or you would getting sued for libel.

There no basis, except your fantasies, for your lies.

You post a few charts then your baseless assumptions about those less fortunate who are forced to turn to the gov't so their children don't go hungry. 

I hope no one is stupid enough  to waste money paying you for your lies? Get a job. You obviously have to much time on your hands.

Jim Quinn's picture

I don't have to justify anything to a shitbag like yourself.

Again, charts, facts and math are beyond the comprehension of a liberal douchebag that worships Paul Krugman and believes Obamacare will improve medical care and reduce costs.

It must be comforting for idiots like yourself to not think and use your pea brain to understand the facts.

I have enough time on my hands to kick the shit out of idiots like yourself.

helping_friendly_book's picture

I never asked nor wanted you to justify your misinformation. You can't!

I have a degree in engineering, recieved the highest score in my ordinary differential equations class.

I'll take you on anytime you feckless toady.

I actually have a job, they pay me for my calculations and to write conclusions I can support. I don't use other peoples work to bash those less fortunate than I. You don't even site, or give credit, for half the graphs you stole to use in your article! That makes you a theif since we all know that is not your work!

You're just another, unpaid, tool of the Koch brothers. How awful for you for being you.

Jim Quinn's picture

You're an anti-Semetic scumbag. When internet trolls like yourself are getting obliterated, you fall back on the old educational credentials that can't be verified.

Your University of Phoenix degree should get you far.

I guess they didn't teach you how to spell thief in your remedial spelling class.

Keep blathering, so everyone can see what a useless mouth breather you are.

helping_friendly_book's picture

Falling back on the anti-semite card? I can't spell? That's all you got thieving Jew?

I can't be anti-semitic since some of my best friends are Palestinians and I love them.

Doesn't change the fact you are a plagiarizing theif taking credit for other people's work. You can't even do your own work you lazy bastard, you have to steal it from someone who can actually make a graph.

That your a Jew scumbag completes the picture. Now I understand how you can be such a lying, thieving, douche bag. It's in your genes. Just like your rabbi taught you.

Like I said:

How awful for you being you. 

Jim Quinn's picture


You have foam dripping from your mouth. You spelled thief wrong again.

The more you post, the more people can see you are a dumbass jew hating nutjob.

I'm a jew named Quinn. That's a good one.

What mark did you get in your abnormal psychology class?

Maybe you can use your engineering degree to design a better oven for the jews.

Jim Quinn's picture

It's You're not Your.

I can't believe the University of Phoenix admits morons with an IQ of 75 into their engineering program.

When do you think you'll be able to move out of your mother's basement?

Is your miserable failure of a life the fault of the jews?

falak pema's picture

Hey Jim, listen to this :

Hey jude, don't make it bad.
Take a sad song and make it better.
Remember to let her into your heart,
Then you can start to make it better.

Hey jude, don't be afraid.
You were made to go out and get her.
The minute you let her under your skin,
Then you begin to make it better.

I'f you are screwed up in libertarian logic, try poetry.

Not that I condone hate and diatribe; I prefer reasoned debate. 

Jim Quinn's picture

I'll be sure to go over to Naked Capitalism for some mental masturbation where you discuss the thousands of Keynesian success stories.

falak pema's picture

right, cos the current american model of Reaganism and libertarian capitalism is SUCH A SUCCESS?

Which world do you live in?

Isn't it time you ideologues of free markets ate some humble pie?


Wake up, you scion of free delusion on the backs of other people's money! And don't tell me its an experiment that went wrong...

You know that Reagan and Thatcher DID exactly what they derided in the Liberal Keynesian Model :


So how do you explain why we are where we are when you become a mouthpiece of Austrian mumbo jumbo? 

They sowed that field  of deregulated supply side HUBRIS that we will now reap; and no Keynes in a month of SUNDAYS went as far as these guys. NEVER! 

Now in their winter of discontent they have become their very opposite; aka Timmy n Ben. CB statism!

Wow, wow wow;.. Gotham City now goes Keynesian; ain't that the unkindest cut of all. 

Jim Quinn's picture

Looks like I struck a nerve.

Why don't you cry to Yves and the rest of the Krugman worshippers on Naked Capitalism?

You Keynesian policy lovers make me laugh. Obama and his Keynesian solutions have added $6 trillion to the national debt in his four years and you idiots declare that we needed another $2 trillion and it would have worked. LOL.

I'm trying to remember all of the Libertarian Presidents and Congressmen that have led to this disaster. Oh yeah. Only Republicans and Democrats have been elected to office.

Seeing idiots blame libertarianism for the country's disastrous situation when they have never had a say in running this corporate fascist welfare/warfare state is entertaining.

Give the 10 douchebags who still read Naked Capitalism my regards. 


falak pema's picture

right, your only argument is to downgrade your fellow bloggers.

You have no substance. 

Ans the real world is never never land to you...

Pathetic. Read Jesse's café if you want corroboration. Read every UK contrarian blog and the smell of your libertarian hubris will find another flavour to match it. You guys are in a world of your own. 

Just scroll down here and you'll know that Obama is you...

Jim Quinn's picture

I take craps with more substance than the drivel you just posted to answer my facts about $6 trillion of Keynesian crapola that did absolutely nothing to fix our problems. I'm sure the next $6 trillion will do the trick. Ask the Japanese.

Keep bowing down to your intellectually dishonest prophet - Krugman.

Pathetic is right.

helping_friendly_book's picture

What a failure you are.

You're mother must be horrified?

You should be ashamed.

Keep it up because you shed much light on your agenda. We are wise to your kind, to your agenda of divide and conquer and we build solidarity to educate and build numbers to seek you out and destroy you and your evil.

You attack children and innocence when you attack the meek. Your attacks show your malevolent character and your piss poor propaganda.

We are wise to your methods and we will include you with the guilty when we come take you to be judged and sentenced.

We will have no  mercy on you; loser!

Jim Quinn's picture

Knowing you're a government drone engineer explains why the country has 156,000 structurally deficient bridges.

You crack me up with your jew hating rants and then saying I have a malevolent character. I thought ZH required an IQ test to post here. Did you get someone from your Holocaust Denier class to take it for you?

Go back to your KKK rally you pathetic excuse for a human being.

W74's picture

Palestinians are awesome.  I've met several at school (and a Lebanese kid) and they're truly decent people who want freedom from the oppression their families are experiencing back home.

W74's picture

Why criticize for merely making the connection? 

Who is Paul Krugman?  Who is Ben Bernanke?  Who is Jack Lew?  The list goes on and I'm sure there are many many more behind the scenes.

falak pema's picture

"Liberal douchebag" ?

So you are not a socio-political commentator but an ideologue feeding the neoliberal trough with your political slant?

You do realise that the wealth pyramid has gone polarised since Reaganomics went on rampage and the % of labour cost  increment,  or the contrary its diminishing part in the GDP cake, has never been lower compared to that of the profit margins of corporates? We are heading to a two tier society without any middle class in first world. You have no position in your analysis on that awesome perspective. How come? 

You cannot make that statement and make it compatible with "factual" analysis. Partial facts  are by definition biased. 

Factual analysis has to present facts from both aisles. 

Don't tell me you don't understand that. 

On a more general plane Naked Capitalism presents an indepth article on the Hayekian model.

You're welcome to comment it as you seem to be an ace in economics; having rejected the "douchebag" perspective of the other aisle. 

retiringteach's picture

fuck you, some speck of white trash-what's your net-worth? 10 cents maybe $1??

tao400's picture

And how is that social security's problem. Whe you don't pay on your mortgage, that's not the banks default, which is basically the same thing. Social security if it was a bank with proper security could foreclose on government assets to get its money

Nikao7's picture

I agree that abuse of SSDI is not good.  But lets be real here.  The amount of money that it costs the Middle Class(myself included) can't make a pimple on the ass of what the Bankers have cost us.

helping_friendly_book's picture

Yes, let's not forget the ones who put us here. I thought ZH was the voice of the people. No excuse for bashing the unemployed. Let's not lose sight of the target.

Where is Jon Corzine?

Who is Kevin Henry?

Why is Israel dictating US foreign & monetary policy?

Where did Jack Lew come from? I've never heard of the guy. How can he have helped Tip O,neil 40 years ago when he is only 59 years old?

retiringteach's picture

and who nand where are you?--i know, some idiot living in a trailor park deep in the heart of texas. next time you see a jew, bow down!

helping_friendly_book's picture

How would I know since joohs, where I live, try and pass themselves as upstanding Anglo-Saxons? They even change their names to Smith, Jones, Quinn, and the like, to obscure their origin. The joohs hide their Khazar origins, the fact that 90% of joohs are actually Khazar Polish and aren't even semites. If you're a decent, honest, person I'll treat you decently. If you think you are better than the rest of us because your a jooh than you can/will go to hell.

moneybots's picture

"The government is so incompetent, they barely check the applications for SSDI."


The government is not incompetent.  The government is deliberate.


In 2004, the FBI warned of massive mortgage fraud.  NOTHING WAS DONE.  The government deliberately did nothing.

The ownership society was in full swing and doing something about mortgage fraud would have stopped the game in its tracks.  The government knows employable people are filing for Social Security disability.  They are deliberately doing nothing about it, just as nothing was done about mortgage fraud.


Mad Muppet's picture

Jeez, Joo-hater-guy, this contrarian diatribe is funnier when MDB does it.

moneybots's picture

"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"


Unfunded over how long a period of time?  10 years, 25 years, 50 years?  Social Security is an open ended government program.  One can throw out any number, even 100 trillion, if one counts out far enough.

A person 20 years old has a million dollars in unfunded income, if you count out far enough.

Jim Quinn's picture

Yes. I made up the number. I didn't get it from the Annual report of the Social Security Trustees Report.

rjs's picture
the unfunded liability of $18 trillion is if you count payments that will be owed for 75 years, to those who aint been born yet; as per the latest  trustees report

the disability insurance fund does have some issues because so many people switched to that when unemployment rations were cut....not something that cant be fixed by raising the cap & taxing everyone, not just the working stiffs...

and that is why they want to cut benefits...payroll tax is 6.2%, but only on incomes below $110,100...raise the cap, the upper class pays too

moneybots's picture

"Al Gore told us this money was in a lockbox."


I don't recall Al Gore saying the money was in a lock box.  The author is using a lot of political buzz words, which belie an objective


"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 author doesn't know a single one of these people, yet makes pejorative blanket political assumptions as to who is applying for disabilty, when they are capable of working, yet no job is available.



Jim Quinn's picture

"I will keep Social Security in a lockbox, and that pays down the national debt. And the interest savings, I would put right back into Social Security. That extends the life of Social Security for 55 years."


Al Gore - 2000 Presidential Debate

W74's picture

The fact that "Depression" is even on the list should indicate to you that the whole thing is a scam.

mumbo_jumbo's picture


you are so correct, he's using all the "talking points" the most uneducated love AND you'd think from this article that if it wasn't for liberals life would be rainbows unicorns and pots of gold for everyone.....pathetic.

Winston of Oceania's picture

LMAO but Mike Huckabee (now my worlds biggest asshat) said SS can NEVER go broke because "we can always put more money in"; he said in right on television so it must be true! Oh wait we're ALREADY FLAT BROKE!!!

With "leaders" like we have we can only be screwed...

lieto's picture

Jim Quinn is his usual ray of sunshine self although most of what he outlines is indisputable fact.

I am waiting for things to get so bad that a politician with an overall plan gains some traction.

Ron Paul was such a man but he just got ridiculed and abused.

Hopefully some day that will change but it won't be until a much higher level of pain motivates folks.

To bad so sad but also an indisputable fact IMHO.

Sucks to be us.

linrom's picture

Eating is unfounded liability for mankind. I figure that it'll cost a quadrillion just to feed the useless eaters over the next millenia. How are we going to pay for this?

yogibear's picture

But Krugman says we don't have to produce, just print in a  Keynesian fantasy fest all the money that is needed.

He should know, he received a worldwide award for making such statements.

See everyone, skittle pooping unicorns really do exist.

W74's picture

A good friend of mine has been a county cop for the past 7-8 years.  We went to HS together and I see him all the time.  When he arrests people he'll often ask "What do you do for a living" and most people will claim that they don't do anything and receive some sort of benefit.  Granted, he mostly patrols in some of the shittier areas and most of hte people he picks up are scumbags.

Several times he's told me about picking people up who're on "disability".  Almost NONE of those people had anything wrong with them, they were just making it up.  One of the worst customers was a guys who couldn't work because he was disabled for "depression".  Imagine not having to work because you can claim you're depressed.

yogibear's picture

"Imagine not having to work because you can claim you're depressed."

It's the way it is. The senators and ciongressmen are on the corporate palm greesing. They have allowed so many jobs be shipped overseas. To prevent riots and attract voters they put everyone on welfare or SSDI.

Ever wonder why the same people that promise everything, which includes more spending and higher deficits get re-elected?

The elected official that limits food stamps and disability will probably be ousted. Socialism is in a positive feedbak now. 

Next step  is for the Free stuff army to take your  assets away from people that have them and share your wealth. 



IrritableBowels's picture

 I was asked that same question by a county mounty the other day after I committed the most egregious offense.  I told him it was none of his business.  His red face brightened up his otherwise drab appearance.  Then he asked me where I was going and where I lived.  "That's my business."  He got angry out and whined, "why can't people just answer a simple question?"  I guess I'm not alone.

The crime: I was headed to work after an overnight snow and my (rear) license plate was "obstructed" due to the white stuff. 


Bad Boyz, bad boyz...

SmittyinLA's picture

work is for immigrants and aliens, don't be a chump, be a patriot, join the FSA,  we have to kill the Socialist beast, and if it doesn't kill the beast then you get a free ride at the expense of idiot Socialist voter-donor-slaves, either way you win.

Work and taxes are for chumps.

1 choice enslave others, or be a slave.

I now choose to enslave.

tsuki's picture

I wondered when the next Peter G. Peterson News Bulletin would be released. 


I am ready for a serious discussion on Federal Pensions. 


Social Security - 2.7 trillion dollar trust fund in worthless T-Bills paying a negative interest.  So, you retire at 67 with a life expectancy of 78 years for an average, or so we are told, payment of $1200.  This adds 18 trillion dollars to the deficit, or so the graphs and charts tell us.


FERS - A TOTALLY funded pension that adds NOTHING to the deficit, or so we are told.  Except, the Federal Government borrows money to pay the TSA, DEA, FBI, DOJ, CIA, and the rest of the alphabet soup.  The alphabet soup puts part of that borrowed money into FERS, and the Federal Government borrows money to match it.  So, you retire at 55 with a life expectancy of 78 years for an average payment which is Top Secret.  Where are the charts?  Where are the graphs?


Military - The largest Socialist economy in the world has a 100% TOTALLY unfunded pension plan.  You work for twenty years and retire at 50% pay at about 40 years of age with a life expectancy of 78 years for an average payment which is also Top Secret.  I know the minimum, about $1500 a month.  Where are the charts?  Where are the graphs?


Selective review of a larger on-going problem is intellectually dishonest.  If you want to have a discussion about the problems with the federal pension plans, you need to include all federal pension plans.  To do less, is propaganda. 




mumbo_jumbo's picture

i'll tell ya what Jim, maybe our government should create an economy based on jobs and not hand outs? then maybe we wouldn't be in this mess.

when welfare pays better what do you think most people will do? it's not their fault they are doing what is in their best interests.

robertocarlos's picture

You can't go to work if can't fit through the front door.

devo's picture

Another SS propaganda piece. Krasting, is that you?

Koch brothers, unite!