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Post by Swampy on Feb 11, 2013 11:27:01 GMT -5
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Post by Sir John on Feb 11, 2013 21:00:41 GMT -5
Back in the olden days, about mid '80s, the US passed a law mandating that ALL Social Security income was to be used to purchase US Treasuries.
In other words it, has ALL been borrowed and spent for decades.
(and the interest rate earned has halved over the years.)
SJ
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Post by boxcar on Feb 12, 2013 1:08:23 GMT -5
Social Security spends more than it takes in today. The kitty is empty.
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Post by Sir John on Feb 12, 2013 2:16:38 GMT -5
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Post by boxcar on Feb 12, 2013 11:00:37 GMT -5
As of August 2010, there is less being paid into the Social Security Trust Fund than is being paid out to beneficiaries. Social Security is now using its "surplus".
Other Government agencies borrowed from that trust fund, and now have to pay it back. But they already spent it! So how will they pay it back? Through bailouts and taxes.
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Post by Sir John on Feb 12, 2013 16:03:50 GMT -5
The Trust Fund is certainly on the road to bankruptcy, but it is not there yet.
It will be when the annual COLA is greater than the annual income from contributions and interest will be the end. So the COLA will be the first thing to be discontinued.
Then.........
SJ
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Post by boxcar on Feb 12, 2013 16:47:37 GMT -5
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