Use access key #2 to skip to page content.

alstry (35.61)

The Money Has Simply Run Out.....

Recs

22

March 15, 2010 – Comments (4)

YOU  KNEW, YOU FELT....IT NOW HAPPENS 

"This is not just a wake-up call, this is it. We're here," said Mary Johnson, a policy analyst with The Senior Citizens League, an advocacy group. "We are not going to be able to put it off any more."

The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.

It's time to start cashing them in.

For more than two decades, Social Security collected more money in payroll taxes than it paid out in benefits — billions more each year.

Not anymore. This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.

Sounds like a good time to start tapping the nest egg. Too bad the federal government already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors. In return, the Treasury Department issued a stack of IOUs — in the form of Treasury bonds — which are kept in a nondescript office building just down the street from Parkersburg's municipal offices.

Now the government will have to borrow even more money, much of it abroad, to start paying back the IOUs, and the timing couldn't be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come.

http://news.yahoo.com/s/ap/20100314/ap_on_bi_ge/us_social_security_ious;_ylt=AkhU4IOMApo9JuSGBiyIEzus0NUE;_ylu=X3oDMTJrZW82NG1hBGFzc2V0A2FwLzIwMTAwMzE0L3VzX3NvY2lhbF9zZWN1cml0eV9pb3VzBHBvcwM1BHNlYwN5bl9tb3N0X3BvcHVsYXIEc2xrA3NvY2lhbHNlY3VyaQ--

EVERYBODY IS OUT OF MONEY...CITIES, COUNTIES, STATES....AND FEDERAL AGENCIES.....ALL AT THE SAME TIME.

THE ONLY WAY TO KEEP THE SYSTEM FUNCTIONING IS TO TAX OUR ASSETS.....OR RESTRUCTURE.

 

4 Comments – Post Your Own

#1) On March 15, 2010 at 8:43 AM, alstry (35.61) wrote:

No Money for Social Security, None for Police...Zip for Firefighters......

Hundreds of layoff notices go out to Toledo city workers on Monday. Toledo is $48 million in the red, and city council has just over two weeks to balance the budget.

Councilman George Sarantou says about 310 workers will be getting layoff notices tomorrow. That includes about 125 firefighters, about 125 police officers, and roughly 60 other city workers.

IT IS NOT THE END OF THE WORLD.....SIMPLY THE END OF A WORLD AS YOU KNOW IT.....

The Blue Ridge School District - Possibly 12 , and Many Program Cuts

City of Flint Michigan - 57

Lemon Grove School District - 51

Alpine Union School District - 17 Notices Next Week

Albany School District NY - 100 Next School Year

The Du Quoin School District IL - Considering Job Cuts 

The State SC Ports Authority - 10 to 15

EVERY TIME WE CUT JOBS....TAX RECEIPTS DWINDLE....CAUSING MORE JOB CUTS....FURTHER DECREASING TAX RECEIPTS......EVEN MORE JOB CUTS......

AND WHEN YOU HAVE AN ECONOMY DEPENDENT ON GOVERNMENT SPENDING.....

Report this comment
#2) On March 15, 2010 at 10:35 AM, dinodelaurentis (72.84) wrote:

And so we head back to my investment model: Increased poulation + decreased resources (real or imagined) = War.

I'm not so much "I'm Right!" as I am "Am I Wrong?" I just don't see as peaceful resolution to these conditions. Nobody here has ever even tried to persuade me otherwise...

God knows we've got all sorts of munitions lying around, millions of "surplus population", and the will to use them. Maybe folks will be noble and bootstrap for a while but I do not believe that peaceful solutions will prevale when they watch their children get hungry. That just seems to upset folks so.

Report this comment
#3) On March 15, 2010 at 10:38 AM, alstry (35.61) wrote:

dino...there is a high probability you are right.

That is simply the math....

Let's hope you are wrong....for our kids and grand kids sake.

 

Report this comment
#4) On March 22, 2010 at 4:42 AM, jdlech (< 20) wrote:

It's not exactly how the world works.  Take India or China, for instance.  Huge populations and far less resources than ourselves.  Huge underclass in each, yet no war.

We Americans are not the first to wage war for resources.  That was the very idea behind merchantile empires.  Don't think that Britain was the only one - they all tried it.  It's just that Britain won the 'merhantile wars'.

The problem is that the cost of war is typically far greater than short term gains in resources.  It generally takes decades, if not a century to recoup losses.  Sometimes, like Iraq or Guatamala or Haiti, we never recoup our losses.  Other times, like with Iran, the blowback costs us far more than we ever imagined.

Lesson: if we're going to invade for resources, we need to completely subjugate the population directly instead of relying on corporate proxies to do it for us.

It might be better for the world if we just studied the management of third world countries so we can order ourselves the best we can when we join them.

Report this comment

Featured Broker Partners


Advertisement