US Welfare State To Run Out Of Cash Sooner Than Hoped For

Tyler Durden's picture

Medicare trustees just released their annual report on the program's finances and it does not make for healthy reading. In fact the main headline takeaway is that the social security fund itself will now run dry three years sooner than was projected in 2011. While 2035, the new deadline, seems a long way off, the 5% rise in medicare costs in 2011 should be enough to worry most and perhaps more disturbing is the separate disability program is set to run dry in 2016 (two years earlier than expected) and Medicare is to be depleted by 2014. Headlines via Bloomberg:


Added Tim Geithner's ever-positive spin-fest...

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UP Forester's picture

No one could have seen this coming.

I wonder if Medicare finances are like the Social Security Trust Fund that W examined, a three-ring binder filled with IOUs in a filing cabinet....

EscapeKey's picture

Do you really need to ask this question?

nope-1004's picture

Geithner is my favorite comic book hero.  Superman and Batman have nothing on this guy.



TruthInSunshine's picture

Cancel the panic, everyone.

Joe Wiesenthal, a blogger (who would gladly kiss Obama's anus on command) of impeccable credentials on an intensely academic and highly respected site, whom even the Nobel Laureate Dean of Bastardized-Keynesianism, Dr. Paul Krugman, looks up to and even cites/relies upon now when fending off well-composed rebuttals of his insane rantings, has said this is all a nothingburger:


ATTENTION EVERYONE: Social Security Will Never Run Out For As Long As You're Alive


Whew! That was a scare for a minute or so!

Dr. Engali's picture

That was about the worst written non supported piece os crap I've read in a long lime.

TruthInSunshine's picture

Wiesenretard forgot the caveat that in order to continue to keep Social Security/Medicare 'solvent,' gasoline will go to $15/gallon while average real wages will hover around $5/hour.

HoofHearted's picture

Geithner is the original muppet. Who do you think has his or her hand up Geithner's ass, making him say the stupidity he just released?

r00t61's picture

Even Wiesenthal can't be this stupid.

I think he just decided to go "full MillionDollarBonus."

mick_richfield's picture

Well yeah, but what he means is:

"You're All Going to Die a Lot Sooner Than You Expect".

GeezerGeek's picture

If Medicare goes broke in two more years then lots of seniors will get sick and die. And Obama won't even need a Death Panel to pull it off.

So Social Security is solvent because few live long enough to collect as much as they put in, just as it was originally designed. Is this some new form of rehypothecation?

Pygar's picture

ATTENTION EVERYONE: Social Security Will Never Run Out For As Long As You're Alive


...because before we admit that the system is fucked, we'll euthanize every last one of you poor bastards and grind you into Soylent Pink.

hoos bin pharteen's picture

The solution to Medicare/SS liabilities is simple, actually.  In Logan's Run they just kill everyone when they reach 30.   

Think of it as really, really late-term abortion. 

</sarc off>

Acorn10012's picture

Unviable tissue mass. If you can't feed yourself, you're screwed.

GeezerGeek's picture

Can we first do a practice run with all elected officials? We'll then wait ten years to see how it worked out. In the meantime, lacking elected 'leaders', the economy should recover nicely.

Stoploss's picture

Assuming we survive the 4 China syndromes in Japan.

Osmium's picture

Something happened in Japan?  Oooh wait, the voice is on TV.

Nolsgrad's picture

the sooner this bitch burns down the better.

odatruf's picture

I am generally one who prefers to keep heading into the breaches, but in this case I don't see the immediate and substantial changes needed for these programs being made in an orderly and timely manner.  I only see deck chairs being rearranged and corrupt practices being the norm until, as Nolsgrad so eloquently puts it, this bitch burns down.

As I result, I embrace the conflagration so as to get to the other side sooner.  Burn motherfucker, burn.

Cursive's picture

Do they do it for the lulz?  If 2035 is the over/under from social security, I'll take the under.  Also, I;ll take the under on 2016 for disability and 2014 for Medicare.  Always take the under on lying liars and the people who follow them.

machineh's picture

'The Affordable Care Act ... included measures to strengthen Medicare by rein in health care costs.' -- Timmah Geithner

Complete and utter horseshit. In fact, Obamacare entrenched the cost-plus health care cartel, sending expenditures soaring -- AS HIS OWN NUMBERS DOCUMENT.

Geithner is like the loser rapist who tells his victim, 'That's only my finger in your belly button!'

LFMayor's picture

Isn't that what Michael J told McCauley?

Cognitive Dissonance's picture

You know......when it rains, it pours.

Agent P's picture

I'd keep playing.  I don't think the heavy stuff's gonna come down for quite a while.

WonderDawg's picture

Are you my pal, Mr. Scholarship winner?

Buckaroo Banzai's picture

Oh Billy, Billy, Billy, Billy, Billy... this is a biggie. Don't let me down, Billy!

WonderDawg's picture

It's easy to grin, when your ship comes in...

ZippyBananaPants's picture

"I'll have a hamburger, no a cheeseburger, I'll have french fries, I'll have have a milkshake"...."You'll get nothing, and like it"

Dr. Engali's picture

I thought that was called trickle down.

TruthInSunshine's picture

. "And a round for the house on me," declared the bankrupt man, merrily.

Let us toast Fractional Reserve Banking/Modern Money Mechanics.

Here's a cocktail to imbibe in while watching the latest global economic seizures, which will 86 another swath of nations, induced by the conjurers of limitless debt/paper fiat (but we drink in the hopes that they'll free themselves of the tentacles of The Money Masters, in that process, finding freedom from debt enslavement).

Adios Motherf**ker
  • 1/2 oz vodka
  • 1/2 oz rum
  • 1/2 oz tequila
  • 1/2 oz gin
  • 1/2 oz Blue Curacao liqueur
  • 2 oz sweet and sour mix
  • 2 oz 7-Up® soda

Pour all ingredients except the 7-Up into a chilled glass filled with ice cubes.

Top with 7-Up and stir gently.

Jonas Parker's picture

"And a round for the house on me," declared Ben, merrily.


There, I fixed it for you...

Nobody For President's picture

Pour all ingredients except the 7-Up into a chilled glass filled with ice cubes.

Pour 7-Up down drain, consume the rest.


There, fixed it for yah.

LongSoupLine's picture


(not to be confused with that funky haired 80's group)

MiguelitoRaton's picture

Ahead of expectations...bullish

machineh's picture

No worries ... "there's a LTRO for that."

lolmao500's picture

And next year, they gonna say that it runs dry in summer 2013...

But eh, don't worry, Obama will save the day... till the election!

An $8 billion trick?

Toying with Medicare to fix elex

Call it President Obama’s Committee for the Re-Election of the President — a political slush fund at the Health and Human Services Department.

Only this isn’t some little fund from shadowy private sources; this is taxpayer money, redirected to help Obama win another term. A massive amount of it, too — $8.3 billion. Yes, that’s billion, with a B.

GeezerGeek's picture

Everyone who is on Medicare or who has a relative on Medicare should write to their House and Senatorial representatives. I wonder what would happen if every one of them who voted for Obamacare got loads of complaints from constituents. I'm going to be asking Senator Nelson (D), here in Florida, just what he intends to do about it. He is up for reelection. If I were in Debbie Wasserman Schultz's district I'd ask her some questions, too. My representative, Allen West, had his district yanked out from under him by idiot REPUBLICANS in Tallahassee via redistricting.

As a conservative already on Medicare, I'm very torn by this issue. But what the heck, I WANT MINE! (I'll leave it to the readers to decide if I'm being a bit cynical or not.)

alexwest's picture

#ain headline takeaway is that the social security fund itself will now run dry three years sooner than was projected in 2011. While 2035, the new deadline

BS as usual..

this report assumes THERE ARE 'REAL MONEY' IN SS FUNDS.. but there aint..
only worthless paper called special type USA bond paying interest printed on same worthless paper..



alphabrew's picture

I think you mean that the IOUs run out.  Cash is already long gone thanks to politicans who have raided the trust fund.  Didn't the teleprompter in chief need to raise the debt ceiling last summer in part to fund social security payments, which *should* be in the trust accounts as cash?

DosZap's picture

 Didn't the teleprompter in chief need to raise the debt ceiling last summer in part to fund social security payments, which *should* be in the trust accounts as cash?


Yep, but there was NO NEED as income INTO, exceeded OUTFLOW by nearly 2x's.

But, we wont quible over the small stuff.

Don Levit's picture

The income exceeded the outgo, when you include interest income.

Interest income is funded by general revenues from the Treasury, which increases the intragovernmental debt.

On a cash basis, interest income is excluded.  That is why the trust fund can be growing, but at the same time, in a negative cash position.

Don Levit

Jason T's picture

like this guys says.. we need real change.

seriously mint little speech here

TideFighter's picture

Less people equals less problems. It's gonna happen. Soulatative Easing. 

LFMayor's picture

Malthusian Twin powers... ACTIVATE

shape of:  Genetically modified smallpox bacillus
form of:  G type nerve agent.