Looks like Bernie Madoff isn’t the only fraud that the current recession will expose… Social Security looks pretty shaky.
According to the Congressional Budget Office, the Social Security surplus will only be $16 billion this year, and only $3 billion next year. In total the recession will shave $150 billion off of the surplus over next three years.
No problem, we’ve been building up the Social Security Trust Funds for just this reason, right?
Ooops – that $2 trillion in surplus since 1983 saved in “trust” is pure fantasy that was spent as fast at it came in:
So in 2018, when the Social Security program tries to redeem these bonds, the Treasury (having already spent that money over the previous 35 years) won’t be able to repay Social Security from any pre-existing store of cash. Taxpayers will be forced to pay extra taxes in order to fund Social Security’s 40 million retiring baby boomers.
Except that “2018” isn’t the actual date. The recession pushed it up to next year.
Expect Obama to “fix” this by raising the FICA rate and FICA limit. The Ponzi scheme must keep on rolling!
Our leaders are absolutely insane frauds. They deserve gulag not comfortable Congressional pensions.