January 14, 2004

What we think of as the Social Security trust fund is really the combination of two trusts. One is the Federal Old Age & Survivors Insurance trust and the other is the Federal Disability Insurance trust. They are both listed under the Intragovernmental Holdings side of the national debt that is also made up of two very different categories.

Currently, the combined Social Security trust fund is 22 percent of the national debt, 53 percent of Intragovernmental Holdings and stands at $1.6 trillion and change. Debt is debt folks. It’s not an asset and can’t pay for anything.

Many are trying to tell us that the trust fund will sustain Social Security until 2042 and that we will not begin drawing upon it until 2016 or so when the baby-boomers start to retire. That is not true because we are already drawing upon the Disability Insurance trust.

Authorities and leading economists have already told us that there is no real money in the Social Security trust fund, that when the supplemental retirement system must turn to its trust fund to meet obligations the government will have to either (1) raise taxes (2) borrow money or (3) cut programs.

So where did the money come from to meet these shortfalls? Payroll taxes didn’t go up, so that’s out. The Bush administration did, however, cut some programs and the national debt went up $596 billion in fiscal 2004.

The only thing that kept the Disability Insurance trust in the black in 2004 was the interest paid the trust fund. And this interest is paid without money involved. The Treasury simply hands the trust more “special obligation” nonmarketable bonds against its balance at the end of the previous fiscal year.

How come there’s no one but me and the Treasury reporting these things?

Visit Ed Henry's own web site!

Send a message to your elected representatives. Click here to start. Be sure to send a copy to Ed Henry.

Archives

Wrong Questions On Social Security Light

Job Loss Reflected By Social Security

Desperate Bush Turns To Social Security

How To Win, The Easy Way

National Debt Tax - The Silence Is Deafening

Know Your Enemy - Missing Parts Of Usama's Speech

Social Security - Is The Battle Renewed?

Social Security II - Privatize The Profits

Borrow-holics Setting Records-

Lou Dobbs Interviews A Crook

Time For Honesty About Social Security

Stop The Bleeding For Real Social Security Reform-

Complete Archives for Ed Henry