That Sound You Hear? That's The Piper And He Wants To Be Paid: Social Security To Start Cashing In Treasury Bonds Worthless Pieces Of Paper

As Ed at Hot Air says "The wheels have begun to fly off the entitlement juggernaut."

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.

Yeah about that borrowing? Follow the link to Hot Air to see what is about to happen to the nation's credit rating.

As I wrote just about a year ago, this Ponzi scheme along with Medicare is about to burst. But hey, the liberals mean well!

Obviously, this is the perfect to time to begin a vast new health care entitlement system that will pretty much dwarf everything that's come before when all is said and done.

We're in the very best of hands.

UPDATE: China's President Hu Jintao emails to say "Obama is about to do sex to me, isn't he?"

posted by DrewM. at 12:56 PM

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