If you do NOT Repay what you borrowed you are in trouble, Right? NOT if you are the US Federal Government​! Why???? – 4/24/2012

“The Social Security system does have assets in the form of $2.7 trillion in Treasury bonds — but those assets must be redeemed – cashed in – in order to pay benefits.

“The redemption of those bonds can only occur out of current income,” explained Senate Budget Committee chairman Kent Conrad last year. “The general fund has been borrowing from Social Security and we’ve borrowed well over $2 trillion,” he said. “That money has got to be paid back. How’s it going to be paid back? It’s going to be paid back by the other general expenditures of the federal government having to be reduced to make way for the payments that we’re going to have to make on those bonds.”

The trustees said that to keep the Social Security trust funds solvent over the next 75 years, Congress could take a number of steps:

  • increase the payroll tax rate from its current level of 12.4 percent to 15.01 percent;
  • reduce benefits by 16.2 percent;
  • find alternative sources of revenue;
  • adopt some combination of these approaches.

Separately, the trustees, who are also the trustees of the Medicare program, reported that the Medicare fund that pays hospital costs for older and disabled Americans will be exhausted by 2024, the same forecast as they made last year.

After the assets of the Medicare fund are gone, if Congress were to take no action, projected Medicare revenue would be adequate to cover 87 percent of the estimated spending in 2024 and about two-thirds of projected costs in 2050.

The trustees’ report underscored the need for Congress to either change the funding of Medicare or curb the increasing cost of the benefits being paid out, or address both funding and benefits.

Reaction to the trustees’ reports varied widely along the ideological spectrum.”

The critical lines are:

“The Social Security system does have assets in the form of $2.7 trillion in Treasury bonds — but those assets must be redeemed – cashed in – in order to pay benefits.

“The redemption of those bonds can only occur out of current income,” explained Senate Budget Committee chairman Kent Conrad last year. “The general fund has been borrowing from Social Security and we’ve borrowed well over $2 trillion,” he said. “That money has got to be paid back. How’s it going to be paid back? It’s going to be paid back by the other general expenditures of the federal government having to be reduced to make way for the payments that we’re going to have to make on those bonds.”

Do you see anybody talking about reducing the other general expenditures of the federal government? Instead:

“The trustees said that to keep the Social Security trust funds solvent over the next 75 years, Congress could take a number of steps:

  • increase the payroll tax rate from its current level of 12.4 percent to 15.01 percent;
  • reduce benefits by 16.2 percent;
  • find alternative sources of revenue;
  • adopt some combination of these approaches.”

In the old USA Western Movies it used to be called “talking out of both sides of your mouth”, i.e., lying and was a good reason to be scalped……

No Comments! ;+)

 

Resources:

http://nbcpolitics.msnbc.msn.com/_news/2012/04/23/11355323-social-security-trustees-see-earlier-fund-depletion-date?lite

http://www.accessgenealogy.com/native/handbook/facts/indian_ethics_morals.htm

http://www.firstpeople.us/FP-Html-Legends/The_Magic_Windpipe-Arikara.html

http://en.wikipedia.org/wiki/Scalp

http://en.wikipedia.org/wiki/Scalping

http://en.wikipedia.org/wiki/Scaphism

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s