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Politics : President Barack Obama
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To: koan who wrote (128419)12/4/2012 1:58:48 PM
From: RetiredNow  Read Replies (1) of 149317
 
koan, I think what you are missing is that you view OASI (SS and Medicare) Trust Funds as distinct from our government's general funds, but it is not. They ceased being distinct when they invested all their cash in Treasuries and Congress spent all the cash on past deficits. There is no OASI lock box. It was raided long ago by Congress.

The way you need to think about this is just like your left pocket and right pocket. If you take $10 out of the left pocket and put it in the right pocket and then put an IOU in your left pocket, you are no better off. You still have a total of $10. If you owe $20 to someone else, you can move that $10 around between pockets all you want, but you'll still only have $10. The only way you'll pay off your debt is to borrow from someone else. SS gets the extra money from Congress, which borrows funds to pay SS. Congress borrows from the Fed, which prints the money. So OASI deficits are simply being met with printed money. Printing money destroys the purchasing power of the 99%. And so it all comes full circle. I know you are hoping beyond hope that there is a free lunch here somewhere. But there is not.

Right now, SS is running a very real deficit and the SS Trust Fund Administrators openly acknowledge that. The $2.5Trillion funds that are owed to them are owed by Congress. So SS is not only paying out more money than it bring in from Payroll Taxes and Taxes on Benefits, but Congress must also supplement SS with additional funding from the general funds to meet the cash outflow requirements. These are facts, not opinions. All information can be found by reading the SS Trust Fund Administrator's reports.
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