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:

  • *MEDICARE COSTS RISE 5 PERCENT TO $549 BILLION IN 2011   :UNH US
  • *LONG-TERM PROJECTIONS FOR MEDICARE WORSEN, TRUSTEES SAY :UNH US
  • *HOSPITALS TO FACE MEDICARE PAYMENT CUTS IN 2024, U.S. SAYS
  • *TRUSTEES SAY FUND TO RUN OUT THREE YEARS EARLIER THAN PREDICTED

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

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Mon, 04/23/2012 - 14:02 | 2367684 Winterland
Winterland's picture

Shocking

Mon, 04/23/2012 - 14:18 | 2367756 UP Forester
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....

Mon, 04/23/2012 - 14:34 | 2367815 EscapeKey
EscapeKey's picture

Do you really need to ask this question?

Mon, 04/23/2012 - 14:35 | 2367818 nope-1004
nope-1004's picture

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

 

 

Mon, 04/23/2012 - 15:17 | 2367957 TruthInSunshine
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!

Mon, 04/23/2012 - 15:28 | 2367984 Dr. Engali
Dr. Engali's picture

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

Mon, 04/23/2012 - 15:31 | 2367993 TruthInSunshine
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.

Mon, 04/23/2012 - 16:12 | 2368215 HoofHearted
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?

Mon, 04/23/2012 - 19:16 | 2368689 r00t61
r00t61's picture

Even Wiesenthal can't be this stupid.

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

Mon, 04/23/2012 - 16:46 | 2368351 mick_richfield
mick_richfield's picture

Well yeah, but what he means is:

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

Mon, 04/23/2012 - 18:36 | 2368607 GeezerGeek
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?

Mon, 04/23/2012 - 18:38 | 2368613 Pygar
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.

Mon, 04/23/2012 - 18:02 | 2368550 hoos bin pharteen
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>

Mon, 04/23/2012 - 18:36 | 2368605 Acorn10012
Acorn10012's picture

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

Mon, 04/23/2012 - 18:39 | 2368616 GeezerGeek
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.

Mon, 04/23/2012 - 14:18 | 2367760 Stoploss
Stoploss's picture

Assuming we survive the 4 China syndromes in Japan.

Mon, 04/23/2012 - 15:14 | 2367956 Osmium
Osmium's picture

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

Mon, 04/23/2012 - 16:01 | 2368162 DosZap
DosZap's picture

Shocking?.

Not so shocking as this.....................read it and weep.

http://www.nypost.com/p/news/opinion/opedcolumnists/an_billion_trick_ImTBFfz7MeuZLJY7JzXEIJ

Thu, 07/12/2012 - 13:04 | 2610323 Nagelstudio
Mon, 04/23/2012 - 14:03 | 2367689 Nolsgrad
Nolsgrad's picture

the sooner this bitch burns down the better.

Mon, 04/23/2012 - 14:12 | 2367724 odatruf
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.

Mon, 04/23/2012 - 14:04 | 2367691 Cursive
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.

Mon, 04/23/2012 - 14:36 | 2367822 machineh
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!'

Mon, 04/23/2012 - 15:30 | 2367989 LFMayor
LFMayor's picture

Isn't that what Michael J told McCauley?

Mon, 04/23/2012 - 14:05 | 2367696 Cognitive Dissonance
Cognitive Dissonance's picture

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

Mon, 04/23/2012 - 14:27 | 2367791 Agent P
Agent P's picture

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

Mon, 04/23/2012 - 14:41 | 2367844 kridkrid
kridkrid's picture

big hitter, the lama.

Mon, 04/23/2012 - 15:08 | 2367938 WonderDawg
WonderDawg's picture

Are you my pal, Mr. Scholarship winner?

Mon, 04/23/2012 - 15:30 | 2367983 Buckaroo Banzai
Buckaroo Banzai's picture

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

Mon, 04/23/2012 - 20:11 | 2368778 WonderDawg
WonderDawg's picture

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

Mon, 04/23/2012 - 14:59 | 2367913 francis_sawyer
francis_sawyer's picture

rat farts!

Mon, 04/23/2012 - 15:22 | 2367969 ZippyBananaPants
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"

Mon, 04/23/2012 - 15:25 | 2367976 Dr. Engali
Dr. Engali's picture

I thought that was called trickle down.

Mon, 04/23/2012 - 14:23 | 2367700 TruthInSunshine
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.

Mon, 04/23/2012 - 14:25 | 2367780 Jonas Parker
Jonas Parker's picture

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

 

There, I fixed it for you...

Mon, 04/23/2012 - 14:44 | 2367853 Nobody For President
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.

Mon, 04/23/2012 - 14:07 | 2367701 LongSoupLine
LongSoupLine's picture

Flock-o-Swans

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

Mon, 04/23/2012 - 14:07 | 2367704 MiguelitoRaton
MiguelitoRaton's picture

Ahead of expectations...bullish

Mon, 04/23/2012 - 14:38 | 2367829 machineh
machineh's picture

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

Mon, 04/23/2012 - 14:09 | 2367706 lolmao500
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!

http://www.nypost.com/p/news/opinion/opedcolumnists/an_billion_trick_ImT...

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.

Mon, 04/23/2012 - 19:02 | 2368664 GeezerGeek
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.)

Mon, 04/23/2012 - 14:08 | 2367709 alexwest
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..

STOP BULLSHITTING PEOPLE

ALX

Mon, 04/23/2012 - 14:08 | 2367711 alphabrew
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?

Mon, 04/23/2012 - 16:04 | 2368181 DosZap
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.

Mon, 04/23/2012 - 17:30 | 2368486 Don Levit
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

Mon, 04/23/2012 - 14:09 | 2367712 SheepDog-One
SheepDog-One's picture

Vintage 70's Zappa, the torture never stops. 

Frank Zappa - The torture never stops (subtítulos en español) - YouTube

 

Mon, 04/23/2012 - 14:09 | 2367716 Jason T
Jason T's picture

like this guys says.. we need real change.  http://www.youtube.com/watch?feature=player_embedded&v=0OVgYCMjr8c

seriously mint little speech here

Mon, 04/23/2012 - 15:23 | 2367972 The Heart
The Heart's picture

It's coming...change...promise!!!!!!

http://www.youtube.com/watch?v=IWDJEc92d38

Mon, 04/23/2012 - 14:10 | 2367718 TideFighter
TideFighter's picture

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

Mon, 04/23/2012 - 15:37 | 2368021 LFMayor
LFMayor's picture

Malthusian Twin powers... ACTIVATE

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

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