Saturday, February 18, 2012

Social Security Default

In an interesting turn of events, the Congressional Budget Office has declared that Social Security will run out of money by 2020.

For years there have been two interpretations on when Social Security will actually be bankrupt. Those who believe in government also believed in the Social Security Trust fund, and therefore believed that when the Social Security Administration started disbursing more funds than it takes in that it would simply liquidate the treasury bonds and keep the program solvent for decades to come. Originally the end date was 2043, but it was moved up to 2036 due to deteriorating economic conditions.

Those who are less likely to believe the promises of politicians have long said that the due date for the bankruptcy of Social Security is 2018, the day that revenues start to exceed expenditures, and that would be a bankruptcy because the alleged trust fund does not exist. When Great Depression Two started that was moved up to 2017, and then moved up even further. Currently expenditures and revenues are nearly equal and all it will take to break the system will be a small jump in expenditures or a small drop in revenues.

But for the Congressional Budget Office to predict disaster for Social Security in the year 2020 is a startling admission. These people are paid to believe that the trust fund exists, so if they are predicting that the trust fund will be depleted that soon the situation must be pretty dire indeed.

The economy is deteriorating at an accelerating pace, but most people do not notice it at this time. This one item of news should be sending up alarm flags across the country, especially since it involves one of the most active voting blocs. This really is big news about how advanced the decay of the United States economy really is, since even the Congressional Budget Office is admitting to it and even CNN is reporting it.

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