Tomorrow Is Here Today
By Greg Hunter’s USAWatchdog.com
In December of 1997, the National Center for Policy Analysis ran this headline on their website “Social Security Problems Accelerating.” The article stated, “A recent General Accounting Office report warns that the long-term prospects for the Social Security system may be even worse than we think. It is already well-known that by 2014 current tax revenues will be insufficient to pay current benefits . . .” Looks like the GAO was right. It was “worse than we think,” because this year, according to an Associated Press story, Social Security “ . . . is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.” The problem everyone thought could be pawned off on another generation is now sucking up an extra $29 billion– this year alone.
The AP article completely down plays the seriousness of this new expenditure. It reassures readers by pointing out that the SS fund is covered by $2.5 trillion in IOU’s from the federal government. Is an IOU the same as cash saved in what former Vice President Al Gore called a “lockbox,” during the 2000 presidential campaign? The article went on to say, “Gore lost the election and never got his lockbox. But to illustrate the government’s commitment to repaying Social Security, the Treasury Department has been issuing special bonds that earn interest for the retirement program. The bonds are unique because they are actually printed on paper, while other government bonds exist only in electronic form.” (Click here for the complete AP article)
I don’t care if these bonds are actually printed on paper. The only way they would truly be worth something is if the IOU’s were printed on gold bars! A government IOU is simply a claim on future taxes, borrowing or money printing. I suspect all three will be applied to pay for the tsunami of retirees that started hitting the system in mass this year. If additional Social Security spending was the only thing the U.S. government had to worry about, this could be managed. But the U.S. has to pay for trillions in bailouts, stimulus, wars and additional social obligations, all at one time. Because of this, there are now serious concerns regarding selling Treasury bills to finance the huge mountain of debt. Recently on CNBC, money manager Peter Schiff said, “If you are thinking about U.S. Treasury debt, think junk bonds, think subprime mortgages. There is no way we can pay this money back. There are two things we can do, we can default legitimately or we can do it through inflation.” Inflation is where we print money to pay our bills, and that will ultimately devalue our currency. There is no wonder why Schiff and other money managers are investing in things like natural resources, foreign stocks and precious metals.
The additional cost of Social Security taking in less money than it pays out is a real milestone on the road to a lower standard of living for most Americans. The mainstream media looked at the $29 billion shortfall in SS with a yawn. It should be screaming in horror because the problem of tomorrow is here today.
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
Your cartoon reminds me of the movie “Catch-22” where Yosarian in an emergency opens parachutes and medical kits only to find the material has been taken and replaced by “stock” in the local scam.
Good one Huck,
Greg
We knew this back in the 80’s when Reagan “fixed” Social Security for the so called “Greatest Generation.” Each takes care of its own.
Actuarial tables and demographics showed then Social Security was not sustainable without significantly raising payroll taxes and reducing benefits to the Boomers.
More and more here in upper middle to upper middle class West Covina, Ca. I see seniors panhandling, pushing shopping carts full of belongings and rummaging through garbage bins.
And just what is the answer for these folks from conservatives and Republicans? Oh yeah, they called them “bag ladies” and offered them the want ad section of the newspaper.
Brad,
Both parties share the blame for where we are now.
Greg
Hey Greg,
True, but I unaware of the Dems being cold and contemptuous or finding humor in sad plight of others.
All the best,
Thrash
Brad,
Please. The country is burning. If you want to fight over the deck chairs, have at it. Thank you for your perspective.
Greg
hey Greg,
Excuse me!!! Which party was left with a surplus and spent it on tax cuts, launched two wars and an entitlement Medicare part D that it didn’t put in the budget? Hmmm…and you want to blame the Dems for that? You may as well join in the whacko Cheney crowd and argue 9/11 didn’t happen on the Bush watch. I suppose you say deregulation didn’t happen under Reagan
I get it. All this so called bipartisan blame on your part is a ruse to blame Dems for what Republicans did.
All the best and good luck with your future endeavors,
Thrash
Brad,
The country is drowning in the most serious debt problem in history. If you read the 115 or posts I have written you will see I have named both parties for the financial black hole Americans are facing. The very survival of the nation is at stake. We will all sink or rise together. I hope you continue to read and comment on the site.
Greg
“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.”
Greg,
We are borrowing money to pay back borrowed money. Congress, both Dems and Repubs have squandered the retirement and health insurance premiums of tens of millions of seniors, paid in advance.
George,
This line is priceless “We are borrowing money to pay back borrowed money.” It sums up the problem well. Keep em coming.
Greg
YA’LL REALLY DON’T “GET IT”,DO YOU? STILL A LITTLE SMUGNESS ON BOTH SIDES, A LITTLE ARROGANCE THAT SAYS “MY POOP DON’T STINK!” WHEN THE JOBS GET CUT ( AND YOU HAVE NONE ) ,WHEN INFLATION SETS IN ( AND A SMALL HAMBURGER COSTS 4.OO DOLLARS ), AND THERE ISN;T MUCH OF ANYTHING ON SHELVES BECAUSE WE DON’T PRODUCE ANYTHING—THEN WER “GOT TROUBLE—RIGHT HERE IN RIVER CITY; T RHYMES WITH P AND THAT STANDS FOR PEDANTIC FOOLS!” THE LACK OF EVERYTHING WILL GUT THE INFRASTRUCTURE BEFORE HOARDED STOCKPILES RUN DOWN-AND PEOPLE ARE GONNA REVOLT AND GET VIOLENT. YES-YES—-WE HAVE MASSIVE ARMAMENT STOCKPILES—BUT THE PROBLEM ISN’T ZOMBIES POURING THROUGH THE STREETS-IT IS HUNGRY PEOPLE. IF CREDIT REMAINS FROZEN TO PREVENT INFLATION—THERE IS REVOLY. IF CREDIT IS OPENED, THE INFLATION WILL MAKE THE CURRENCT WORTHLESS—REVOLT, AGAIN. WE CAN REBOOT THE PRODUCTION OF SELF-SUBSISTENCE OF OUR RESOURCES—BUT IT WILL TAKE A LONG WHILE. START TO THINK OF THE ISRAELITES LEAVING EGYPT AND HANGING OUT IN YHE DESERT FOR 40 YEARS—–PRETTY RADICAL! IT IS MORE THEN A FEW RETCHED STREET VAGRANTS COLLECTING CANS—-THE LIFESTYLE AND HOPES OF A BETTER FUTURE ARE KAPUTT!MANY PEOPLE WILL FREAK-OUT AND PSYCHOLOGICALLY GO VIOLENTLY BONKERS. AND-YOUR LAP-TOP AND TEXTING PHONES WILL PROBABLY BE A FOND MEMORY AS YOUR EOAST ANIMAL MEAT ON YOUR SPEARS OVER A WATCH-FIRE—-AM I SINKING IN TO YOUR KARMA CONSCIOUSNESS, YET, BUBBALA?!
Rand,
I hope you are wrong but fear you just might be right. Thank you for takinbg the time to comment.
Greg
GREG-I AM NOT TRYING TO BE TO “CUTE” OR WAX PEDANTIC-AN EDUCATION AT STETSON UNIVERSITY ENABLED COMMUNICATION, AND POLITICAL LABELS ARE USELESS AT THIS POINT. I WASN’T MUCH FOR UNDERSTANDING THE MILTON FRIEDMAN FREE AND MIXED ECONOMY MODELS-EXCEPT-I KNOW THEY AREN’T WORKING. IT IS SCARY, GREG-WE A-R-E PAYING A RANSOM DEBT TO SOME GROUP THAT HAS USURPED TOTAL MORAL MANIPULATION AND WORLD POWERS.I USED TO CHUCKLE AT THE OLD T.V. SERIES “MILLENNIUM”, THE PREPOSTEROUS PREMISE THAT A SECRETIVE GROUP COULD CRIPPLE THE COURSE OF HUMAN HISTORY-BUT I REREAD THE RANTINGS OF ONE AUSTRIAN REBEL WHO DREAMED OF WORLD DOMINATION-ADOLPH HITLER. IT SEEMED PREPOSTEROUS THAT ONE MAN COULD MANIPULATE AND SUBJUGATE AN ENTIRE WORLD BRUTALLY.. THE LONGER THIS CIRCUS OF CORRUPTION IS ALLOWED-THE MORE DIRECT AND BRUTAL THE BREAK TO KILL IT OFF WILL BE. CANCER AIN’T CURED BY WISHIN’! THE SEEKING OUT OF THESE ELEMENTS WILL BE LONG AND ARDUOUS,BUT THE STAKES WE ARE PLAYING FOR ARE NO LESS THEN THE ENTIRE HISTORY AND DESTINY OF MANKIND. WE TAKE THESE ISSUES DEADLY SERIOUS. I NOW BEGIN TO SEE WHAT THE REAL FEELINGS WERE BEFORE THE AMERICAN REVOLUTION. THERE IS AN ELEMENT SO POWERFULLY CORRUPT, IT MUFFLES AND GAGS EVEN THE MOUTH OF THE HIGHEST OFFICIALS-I AM CONCERNED, SIR- I AM FRIGHTENED.
Rand,
This is very serious. I keep telling people this has never happened before in human history. Everyone should be scared but brave too. Good people like you will be needed when we rebuild the country. Thank you for the comment.
Greg