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Old 03-15-2010, 05:51 PM   #1
peaceandlove
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Default Social Security to start cashing Uncle Sam's IOUs LOL

Social Security to start cashing Uncle Sam's IOUs

By STEPHEN OHLEMACHER, Associated Press Writer – Mon Mar 15

PARKERSBURG, W.Va. – The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.

It's time to start cashing them in.

For more than two decades, Social Security collected more money in payroll taxes than it paid out in benefits — billions more each year.

Not anymore. This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.

Sounds like a good time to start tapping the nest egg. Too bad the federal government already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors. In return, the Treasury Department issued a stack of IOUs — in the form of Treasury bonds — which are kept in a nondescript office building just down the street from Parkersburg's municipal offices.

Now the government will have to borrow even more money, much of it abroad, to start paying back the IOUs, and the timing couldn't be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come.

Continues: http://news.yahoo.com/s/ap/us_social_security_ious



Social Security Dies (Again)

Posted by Andrew Ward on 03/15/10
Campaign for Liberty Article

After years of being on life support, the government's decades-old insurance-turned retirement program is once again running into demographic and economic reality. The Associated Press reports that for the first time since the last Congressional overhaul in the 1980s, Social Security is projected to pay out more in benefits than it brings in through taxation by nearly $29 billion.

Don't let guys like former Enron-adviser Paul Krugman tell you that there's a magical "trust fund" out there that will buy us some time. The so-called "trust fund" is little more than approximately $2.5 trillion dollars of IOUs from the Treasury.

Continues: http://www.campaignforliberty.com/blog.php?view=33541

Last edited by peaceandlove; 03-15-2010 at 06:17 PM.
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Old 03-15-2010, 06:01 PM   #2
peaceandlove
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Default Re: Social Security to start cashing Uncle Sam's IOUs LOL

Social Security: "Here It Comes"

Monday, March 15. 2010
Posted by Karl Denninger

Now the interesting part of the game begins.... http://www.nytimes.com/aponline/2010...ef=global-home

Quote:
This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes -- nearly $29 billion more.
In a world where we talk about trillions, this doesn't sound like much. But it's not the amount that's the problem - it's the direction.

For decades government has cooked its books by stealing the Social Security taxes you pay. This was the infamous "lock box" debate had during Gore's campaign. Too bad Mr. "the world's getting hotter so I have to live in my 20,000 sqft mansion with the AC blasting in all 79 rooms" Gore decided to make a partisan political issue out of something that his boss (that would be Herr Clinton) had practiced himself to make the (false) claim that he had run a surplus!

There was no surplus in the 1990s folks. Clinton, like the Presidents before and after him (from both sides of the aisle) simply stole the FICA tax receipts, replacing them with non-marketable bonds.

If you're wondering why we have hinky accounting in our banks, a good part of the reason is that our government cooks the hell out of the books themselves.

There's little reason for private business to behave ethically when our government won't, and there's little risk of prosecution when the scamming starts at the very top.

PaL: ( Monkey See, Monkey Do!!! )

Continues: http://market-ticker.denninger.net/a...-It-Comes.html

Last edited by peaceandlove; 03-15-2010 at 06:36 PM.
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Old 03-15-2010, 06:07 PM   #3
mntruthseeker
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Default Re: Social Security to start cashing Uncle Sam's IOUs LOL

Geeze you suppose they can go print up some of that stuff called money ?

the joy of spreading fear. Cant wait til we live without money
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Old 03-28-2010, 04:30 PM   #4
peaceandlove
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Default Re: Social Security to start cashing Uncle Sam's IOUs LOL

Quote:
Originally Posted by mntruthseeker View Post
Geeze you suppose they can go print up some of that stuff called money ?

the joy of spreading fear.
Hellooooooo.....its tiring, I know.

Blah, Blah, Blah, Blah!



Social Security to See Payout Exceed Pay-In This Year

Posted by Matt Hawes on 03/25/10

Via The New York Times:

Quote:
This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office....
Quote:
Mr. Greenspan recalled in an interview that the sour economy of the late 1970s had taken the program close to insolvency when the commission he led set to work in 1982. It had no contingency reserve then, and the group had to work quickly. He said there were only three choices: raise taxes, lower benefits or bail out the program by tapping general revenue.

The easiest choice, politically, would have been “solving the problem with the stroke of a pen, by printing the money,” Mr. Greenspan said. But one member of the commission, Claude Pepper, then a House representative, blocked that approach because he feared it would undermine Social Security, changing it from a respected, self-sustaining old-age program into welfare.
Read the rest: http://www.nytimes.com/2010/03/25/bu...social.html?hp

SOURCE: http://www.campaignforliberty.com/blog.php?view=33990

Last edited by peaceandlove; 03-28-2010 at 05:33 PM.
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