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Madamec8  (Level: 79.5 - Posts: 890)
Wed, 13th May '09 5:02 AM


******Warning -- Depressing Adult Content********

Social Security, Medicare funds dwindling faster
Associated Press

WASHINGTON -- Social Security and Medicare are fading even faster under the weight of the recession, heading for insolvency years sooner than previously expected, the government warned Tuesday.

Medicare already is paying out more money than it receives, something that happened for the first time last year. And Social Security will be by 2016, a year sooner than had been projected, the trustees' annual report said.

Unless changes in Social Security are enacted, the retirement fund will be depleted in 2037, four years sooner than projected last year. The Medicare trust fund is in even worse shape. It is projected to become insolvent in 2017, two years earlier than expected.

More immediately, the trustees do not expect Social Security recipients to get cost-of-living increases in 2010 or 2011, something that hasn't happened since automatic adjustments were adopted in 1975. The Social Security Administration will set next year's cost-of-living adjustment in October, based on inflation over the previous year.

The recession is hurting both funds, which are financed by payroll taxes. The U.S. has lost 5.7 million jobs since the recession began, meaning fewer payroll taxes are flowing into the funds. At the same time, aging baby boomers and rising health care costs are adding to expenditures.

The trust funds -- which exist in paper form in a filing cabinet in Parkersburg, W.Va. -- are bonds that are backed by the government's "full faith and credit" but not by any actual assets. That money has been spent over the years to fund other parts of government.

To redeem the trust fund bonds, the government would have to borrow in public debt markets or raise taxes.

Collioure  (Level: 102.3 - Posts: 9952)
Wed, 13th May '09 7:22 AM

I am afraid. Perhaps you didn't notice, but one of Sec State Clinton's first contacts was China - to ask them to finance our debt and essentially our purchases of their goods.

The proposed budget deficit for FY 2010 is gigantic with or without Medicare and Social Security trust fund problems. We do need to spend our way out of this hole. Problem is in good times the politicians never put anything away for a rainy day (when they will be out of office).

I am very afraid for the value of the dollar.

Caramel1  (Level: 125.9 - Posts: 21553)
Wed, 13th May '09 7:41 AM

Neither Pelosi nor reid will even convene a group to talk about it as it is obviously not voter friendly., Perhaps when the goverment runs health care and determines whose treatment is Cost-effective they will just weed out us old people and that will solve the problem., They will hen have plenty of money to spend on improvements on the one runway of Murdau (Sp) and Harry's train from Vegas to Disney and the rest of the "EARMARKS" that weren't going to be there but strangely seem to be . But everything looks good as TOTUS is proposing cuts in the Millions-how meaningful-which the lawmakers will never pass and 40% of them are the same ones that Bush proposed- PAY ATTENTION!! Linda

Caramel1  (Level: 125.9 - Posts: 21553)
Wed, 13th May '09 8:54 AM

I have been afraid fr my dollar for quite some time at that rapid rate money is being printed. It simply amazes me that so many people believe the "Government"-that would be us- or is supposed to be is flush with money,. For every dollar they spend they have to tax, borrow, or print-there is NO free ride for most people Do the math-simply not enough rich "fat cats" to fund this monster- Linda

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