By Monty Pelerin
The Federal Government’s Ponzi Scheme noose tightens each day. Time is not an ally for government. They are running out of it and revenue sources to pay exploding obligations. At some point, government dies and with it many of its dependents.
The Washington Examiner states that the Social Security Disability fund runs out of money in 2016:
The Social Security disability program will run out of money in late 2016, a report issued Wednesday by the Social Security and Medicare trustees warned.
At that point, the 10.9 million beneficiaries of the program face an immediate 19 percent cut in benefits, unless Congress intervenes.
The combined trust fund for the retirement and disability programs is projected to run out by 2034, a slight improvement from last year’s estimate.
The trust fund for Medicare hospital insurance will be depleted by 2030, unchanged from last year. Source: WashingtonExaminer.com RSS – politics
The reality is that Social Security has no money. Whatever excesses it generated in its early days was funneled into Washington spending. All that remains is a promissory note from the Feds to the Social Security Fund. The quality and integrity of your Social Security depends on the fiscal responsibility and spending prudence of the US government. Good luck with that!
Social Security is merely a bell going off. It is not the final bell. If it were just Social Security and politicians were willing to address this issue and their spending, the retirement fund’s problems could be resolved. Those above a certain age would have their promises honored while those below this age would see Social Security, in its present form, go away. It will likely be replaced with some mandatory individual IRA accounts.
Unfortunately, the Social Security issue is the easy one among the promises and debts that cannot be honored. The Medicare liability is too large to honor. So too is the Federal debt so long as it grows faster than the economy. So too is the banking system the next time it fails, and it will. (my emphasis)
By Monty Pelerin for Economic Noise
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