Obama says there will be a PROBLEM with next month's SSC checks!

a reply to: cavtrooper7

This was old news when they were in a budget battle. Those days are gone now budgets get rubber stamped. As to some if the questions on here thr problem with soc sec is it has a bunch of ious from the govt. The Govt takes the money invested into the system and uses it for budget and leaves behind IOUS to be paid back to social sec at specific times. Thr only reason soc sec can go broke is because thr govt can't make those payments back to the soc sec fund. If soc sec was ran the way it was intended this could never occur because those funds would be available and collecting intrest from banks.

a reply to: cavtrooper7

Why would'nt he believe it? People were dumb enough to vote for him twice even though they got stiffed and lied to the first time. Don't underestimate the capability of stupidity in the masses.

a reply to: dawnstar

You think the government is OBLIGATED to what??

a reply to: NewzNose
to pay back the money they borrowed from the social security fund!!!
the money was invested in gov't treasury bonds...
they are a tad bit different than the treasury bonds that can be sold on the open market, but they are just as real.
they collect interest, which as long as the fund was running a surplus was just converted into more treasury bonds, but since there isn't a surplus now, the gov't is paying that interest in cash. to make up the deficit. if the time comes, the gov't will be obligated to allow the fund to start cashing in those treasury bonds.

www.motherjones.com...

it they don't it will be just as real of a default as if they refused to make due on their other debts, which probably means when the house of cards come tumbling down, they will all tumble... not just social security.

a reply to: dawnstar

You realize the government pays nothing back. It is a for profit Corporation, right? You know this...

and for profit corps have two options don't they, either pay their debt or declare bankruptcy.

The national debt - the amount of money the government owes its creditors - is about $12.5 trillion, or nearly $42,000 for every man, woman and child in the country. About $8 trillion has been borrowed in public debt markets, much of it from foreign creditors. The rest came from various government trust funds, including retirement funds for civil servants and the military. About $2.5 trillion is owed to Social Security.

Good luck to the politician who reneges on that debt, said Barbara Kennelly, a former Democratic congresswoman from Connecticut who is now president of the National Committee to Preserve Social Security and Medicare.

"Those bonds are protected by the full faith and credit of the United States of America," Kennelly said. "They're as solid as what we owe China and Japan."

www.dispatch.com...

weather they pay it back or not, who knows, but if they don't, well, it won't only be social security recipients that will be affected since they borrowed money in the same manner from other gov't trust funds, and if the renag on them, they might as well tell china and japan and whoever else we owe money to tough luck also since we'll be saying goodbye to our grade A credit rating!

I'm absolutely SURE this won't have any more of a telling effect in this election, than what we already KNOW from the DNC emails...

a reply to: cavtrooper7
at least the emails is more recent news...
we're probably the only ones in the world discussing how the govt once upon a time claimed they wouldn't be able to deliver the social security checks on time...
it's old news in other words.

a reply to: dawnstar

But the TIMING is not.
It may indeed be a well known story or maybe an empty threat.

In 2015, Social Security's total income exceeded total cost by $23 billion. When interest received on trust fund assets is excluded from program income, there was a deficit of non-interest income relative to cost equal to $70 billion. The Trustees project that annual non-interest-income deficits will persist throughout the long-range period (2016-90).

www.ssa.gov...

meanwhile while they gripe about having to pay just the interest on the debt that they owe the trust fund, they are blowing close to $42 billion on three new ships for the navy... of which, the first one was to be ready two years ago but still isn't operational...



www.azfamily.com...

a reply to: cavtrooper7

By Corbett Daly CBS News July 18, 2011, 12:58 PM

This is old news.

Please check the date. This isn't relevant anymore

a reply to: cavtrooper7

Just give Obama some slack.

He's still got five more months to find a way to shut the government down again.

He just may do it yet.

a reply to: tinymind

na, he's just hired 3000 extra workers to help barricade the white house. there's no way he's leaving without a fight!!

originally posted by: Orionx2
What happens to all that money every legally working person and employer puts into SS every month?

I think you mean that every legally working person and employer has taken from their hard-earned paycheck...but I digress.

That money was spent years ago on things that have nothing to do with Social Security, and the SS fund is near broke. Plus, take into account that baby boomers are all retiring now, and there is a lack of jobs currently in America to fund such a mass exodus from the workforce, and you'll understand why it would run out of money.

a reply to: dawnstar

GOOD!
Patton once said BUNKERs and forts are monuments to the idiocy of man,a fixed position is a DEAD position...or something like it.
YOU didn't KNOW that, as are a few million facts you glance over to come to such conclusions.