Jackson Lee:Social Security is Solvent

Discussion in 'Politics' started by beretta304, Dec 4, 2012.

  1. beretta304
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    beretta304 BANNED

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    According to Social Security's trustees, the program has operated in the red in each of the last two years.

    Social Security will exhaust its so-called "trust fund" in 2033. But this "trust fund" is made up of IOU's that the Treasury has given to the Social Security Administration in exchange for money that the Treasury took historically from Social Security payroll tax revenues and spent other things than Social Security.

    According to an April 2012 report from the Social Security and Medicare Board of Trustees, the program ran deficits in 2010 and 2011, and, in order to pay all Social Security benefits, the federal government needed to increase the federal debt by borrowing money in the market.

    The trustees reported that, in its current state, Social Security will be in the red virtually in perpetuity.

    “Social Security’s expenditures exceeded non-interest income in 2010 and 2011, the first such occurrences since 1983, and the Trustees estimate that these expenditures will remain greater than non-interest income throughout the 75-year projection period,” the report said. “Redemption of trust fund assets from the General Fund of the Treasury will provide the resources needed to offset the annual cash-flow deficits.”

    Jackson Lee:
     
  2. CrusaderFrank
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    CrusaderFrank Diamond Member

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  3. NYcarbineer
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    NYcarbineer Diamond Member

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    Social Security is a creditor. The general fund is in debt to the Trust Fund. The Trust Fund buys US securities as an investment,

    in order to generate interest income.
     
  4. CrusaderFrank
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    CrusaderFrank Diamond Member

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    The "Securities" it buys can only be sold to the US Government, they're Bernie Madoff bonds
     
  5. healthmyths
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    healthmyths Gold Member Supporting Member

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    So do you think any lender would lend money to social security?

    Lenders look at the assets that a borrower has assessing the quality.
    Lenders also look at what potential expenses the borrower might have i.e. SS having MORE people taking money out then people putting money in.. i.e. more older the younger people... (side affect of Democrats abortion that costs 50 million TAX payers since 1973 RoeVWade...)
     
  6. martybegan
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    martybegan Platinum Member

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    And the only source for that "interest" is federal tax money from the general fund. There is NO investment here. Its basically taking money from one federal intake and using it to make up the negative difference in another.
     
  7. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Romney didn't talk about, nobody talks about it until it blows up.
     
  8. Claudette
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    Claudette Gold Member

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    SS should be taken out of the GF.

    It was way more than solvent until LBJ needed money for the Vietnam War. He put it in the GF and those clowns have been raiding it ever since.

    Congress doesn't put money into SS. They have their own fund. Color me surprised.

    I'm not a big fan of either SS or Medicare. If I could. I would take every dime I have in both those systems. I can take better care of my money than one of those Clowns in DC ever will. My money would be making me money right now.

    I also wonder just how popular either of those systems would be if folks were told they could only take out exactly what they had in the system. They couldn't use the money of folks coming behind them.
     
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  9. blastoff
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    blastoff Undocumented Reg. User

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    If fatso Lee says it's so, it's gotta be so.

    Isn't she the sage dimocrat congresswoman who during a NASA briefing about a Mars probe asked if it was going anywhere near where our astronauts landed?
     
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  10. Mad Scientist
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    Mad Scientist Feels Good! Gold Supporting Member Supporting Member

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    Yep. Stupid people elect stupid leaders.
     

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