From Birch Gold Group
The Social Security payment retirees get every month has become an important part of retirement life. For some, this payment even pulls them out of poverty.
But times have changed. Social Security is in danger, and if nothing is done, it faces a serious cut of 25% by 2034. What’s more alarming is some of that “danger” may knock on Social Security’s “door” in 2020.
Here is one potential reason why…
Continue reading “Social Security May Be Moving “Behind the 8-Ball””
Guest Post by Bill Bonner
I think the greatest threat domestically to the country is this $21 trillion debt hanging over the cloud of America and future generations.
– Outgoing Starbucks Chairman Howard Schultz on CNBC
POITOU, FRANCE – Uh oh.
The “social welfare” systems that are responsible for 40% of federal spending are going broke. A headline from The Wall Street Journal:
Social Security Expected to Dip Into Its Reserves This Year.
What reserves? Ah… the “Trust Fund.” But what’s in the trust fund?
What else? U.S. Treasuries.
In other words, the people’s favorite pension plan will depend on U.S. Treasury bonds… IOUs from the deepest debt hole in the world… the same IOUs that the world’s biggest central bank – the Fed – is unloading through “quantitative tightening.”
And these are the same IOUs that the federal government is selling, too – in record number. Deficits must be covered by borrowing (selling bonds). And in fiscal year 2019, the feds are going to need to sell $1.2 trillion worth of them.
I’m sure tackling these issues is next on Trump’s agenda. Sound of crickets. Fiscal disaster is baked into the cake. Only tough unpopular actions could save the country from this inevitable crisis. Therefore, no politician from either party will propose anything that could work. So it goes. Enjoy the show. Pray. WWQD
Medicare’s trust fund has just eight more years of solvency until 2026, and Social Security will be exhausted in 2034, according to Thursday projections by the trustees for the government programs.
While Social Security’s expected depletion is unchanged from last year’s projection, the date for Medicare’s demise was moved up three years.
Social Security is made up of several funds; the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) are combined for the designation OASDI, while Medicare’s Hospital Insurance trust fund is designated HI.
If allowed to expire, beneficiaries would face an immediate reduction of around 20% in benefits.
