‘Social Security is Structurally Sound;’ Trustees: ‘Unfunded Obligation … Is $8.6T'

beretta304

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Obama: ‘Social Security is Structurally Sound;’ Trustees: ‘Unfunded Obligation … Is $8.6T'


President Barack Obama said in Wednesday night’s presidential debate that Social Security is “structurally sound,” but Social Security’s Board of Trustees said in their 2012 annual report that the program faced $8.6 trillion in “unfunded obligations”--meaning that it is currently obligated to pay out $8.6 trillion more in benefits than it is anticipated to bring in through taxes.

However, in their annual report published on April 25, the Social Security Trustees said that program not only faces $8.6 trillion in unfunded obligations but that the situation became dramatically worse over the previous year.

The trustees point out that a major legislative change that increased the unfunded obligation of Social Security was the cut in the Social Security payroll tax that had been advocated by President Obama. This payroll tax funds the Social Security program.
 
Yeah...over a 75 year period!

And, of course, the trustee's report says that SS, Medicare and SSDI face funding shortfalls in varying degrees and at different times PROVIDING THAT NO LEGISLATIVE ACTION IS TAKEN.

Instead of offering up more gloom and doom and cherry-picking your information, why not read the report yourself and see what the trustee's REALLY said?

The 2012 OASDI Trustees Report

Pay particular attention to the assumptions they make about projected income, inflation, energy costs, wages etc over the next 75 years, assumptions upon which they base their projections.
 
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Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.


If the economy improves, then SS will continue to be solvent until about 2050 or so..
 
Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.


If the economy improves, then SS will continue to be solvent until about 2050 or so..
IOW, there's no money there....Who do you expect is going to be holding the bag to make those bonds good?
 
Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.


If the economy improves, then SS will continue to be solvent until about 2050 or so..
IOW, there's no money there....Who do you expect is going to be holding the bag to make those bonds good?

they just don't seem to get it, do they?
 
Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.


If the economy improves, then SS will continue to be solvent until about 2050 or so..

Wow.. Frightening.. THERE'S NO MONEY.. Do you get it???? Did some kind of alien life form land on earth and rob Libruls of their brains? How can any one group of people be sooo stupidly blind and ignorant? How is it possible???
 
Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.


If the economy improves, then SS will continue to be solvent until about 2050 or so..

The government currently is 16 trillion in the hole. Sorry but if a company that owed me money was in the same predicament I wouldn't be counting on getting what's owed me anytime soon if ever.
 
Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.


If the economy improves, then SS will continue to be solvent until about 2050 or so..

So.....tell me...what are the bonds worth if there is no actual money there to back them up?
 
IOW, there's no money there....Who do you expect is going to be holding the bag to make those bonds good?

Uh...those are government bonds. You're on the hook for it already.
Well, DUUUUUH!

Where's the cash money that was collected for the "trust fund" via FICA deductions?


Uh...it was invested to draw interest. Don't you think that's a good idea?

And, it was invested in what the actuaries consider a safe investment: The US government. Would you rather they have invested it in the stock market? Wouldn't than have been nice when the market collapsed?
 
Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.


If the economy improves, then SS will continue to be solvent until about 2050 or so..

So.....tell me...what are the bonds worth if there is no actual money there to back them up?


What bonds are backed up by cash? If you invest in a corporate bond for a million bucks, do you think that corporation has a million dollars in the bank to secure it? If they did, they wouldn't need to sell bonds...would they?

Bonds are a form of raising money, a loan if you will, and it's backed by nothing more than the faith you have in the issuer, plus whatever physical assets they own. It's not risk free.

Government bonds are no different except that the federal government cannot technically go bankrupt.
 
Uh...those are government bonds. You're on the hook for it already.
Well, DUUUUUH!

Where's the cash money that was collected for the "trust fund" via FICA deductions?


Uh...it was invested to draw interest. Don't you think that's a good idea?

And, it was invested in what the actuaries consider a safe investment: The US government. Would you rather they have invested it in the stock market? Wouldn't than have been nice when the market collapsed?
To draw interest?...Are you fucking serious?

ZOMFG! :lmao:
 
Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.


If the economy improves, then SS will continue to be solvent until about 2050 or so..

So.....tell me...what are the bonds worth if there is no actual money there to back them up?


What bonds are backed up by cash? If you invest in a corporate bond for a million bucks, do you think that corporation has a million dollars in the bank to secure it? If they did, they wouldn't need to sell bonds...would they?

Bonds are a form of raising money, a loan if you will, and it's backed by nothing more than the faith you have in the issuer, plus whatever physical assets they own. It's not risk free.

Government bonds are no different except that the federal government cannot technically go bankrupt.
No!...They can't run out of money!...They still have plenty of checks left!

godzilla_facepalm.jpg
 
Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.


If the economy improves, then SS will continue to be solvent until about 2050 or so..

So.....tell me...what are the bonds worth if there is no actual money there to back them up?


What bonds are backed up by cash? If you invest in a corporate bond for a million bucks, do you think that corporation has a million dollars in the bank to secure it? If they did, they wouldn't need to sell bonds...would they?

Bonds are a form of raising money, a loan if you will, and it's backed by nothing more than the faith you have in the issuer, plus whatever physical assets they own. It's not risk free.

Government bonds are no different except that the federal government cannot technically go bankrupt.

Technically of course, why not?
 
Technically of course, why not?


Because the government can simply put more money into circulation or, as it's commonly referred to, "print more money." It can't default on its obligations. It may pay those obligations off in horribly inflated money, (which would be a REAL boon to the taxpayers!), but it will pay them off.
 
Ahhh...

"Full faith and credit" = "We'll see to it that you get every dime coming to you, even if we have to tax you out of your home or inflate the currency to complete worthlessness to do so".

I'm sooooooo relieved. :rolleyes:

Well...that's better than if you'd invested in such great, honest, straight-forward and dependable corporations as Enron or Lehman Brothers.

But, of course, corporations are always better than the government....right?
 
Social SEcurity currently owns $2,500,000,000 worth of government bonds.

Its not in bad shape right now.

It might get into problems if nothing is done in the next decade or so, though, that is true.

If the economy improves, then SS will continue to be solvent until about 2050 or so..

SocSecurity is in worse shape that a Bernie Madoff Investment

Obama told us it was broke and owned no assets back in August 2010.

"I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it,"

Obama says he cannot guarantee Social Security checks will go out on August 3 - Political Hotsheet - CBS News
 

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