Thanks to info "steveegg" at No Runny Eggs linked me to earlier today, I had to add the word "Annual" before "Cash Flow" at this post (at NewsBusters; at BizzyBlog) that originally appeared Wednesday.
That's because the system is already running monthly deficits, and significant ones.
Back in February, the system also ran a deficit. It was bad news, but because February is an unusual month containing a full month of payments but only 20 business days of collections (actually 19, since Presidents Day is a federal holiday), I didn't think it was an indicator of a near-term problem when I noted it in early April. I was wrong.
The degree of the decay is obvious when you look at July's and August's results. The drastic decline in year-over-year collections noted in Wednesday's post indicate that September is almost certainly going to be no better, and will probably be worse.
Go to this link and you'll be able to replicate the tables that follow (simply type "7" or "8" at Item 3):
As you can see, the Old Age program was somewhat positive during July, but the Disability program's deficit pushed the overall result into the red.
August was much worse:
Both programs ran a cash deficit in August. I have to think that the $5.76 billion cash shortfall might be the worst performance in decades, and maybe ever. Given how poor overall September collections were through Monday compared to the similar period in 2008, September will almost definitely be worse.
What I have been calling the POR (Pelosi-Obama-Reid) Economy, now the POR Recession/"Repression" As Normal People Define It, since July of last year explains why things have gotten so bad so fast. But the more fundamental problem is that any and all attempts at reform have been stymied by the Democratic Party and the establishment media (but I repeat myself) for the better part of 15 years. Now that the fiscal chickens are coming home to roost, there is dead silence about all of this.
I suppose any mention of Social Security's scary decay would jeopardize the chances of passing state-run health care. We can't have that.
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters
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I hope George W. Bush comes
September 24, 2009 - 16:24 ET by mattmI hope George W. Bush comes out with a series of campaign ads for conservative candidates using this story as a way to say "See, I told you so. We tried to stop this problem before it happened, but the Democrats said 'noooooo', and claimed I wanted old people to die. And now, Social Security is broke. Thanks to the Democratic Party. It's time to fix the problem, and if the Democrats won't do it, put them on unemployment and let someone else do the job."
mattm... The RNC/GOP
September 24, 2009 - 16:31 ET by bigtimermattm...
The RNC/GOP big-wigs may give a that a thumbs down...I remember what all they did when anyone dare say anything against O, the leftist in the msm, along with the leftist congress-critters voices constant complaints, and of course McC team always agreed.
Nevertheless...I agree with you and your point regarding all the dems did to kill anything that would help SS...it was sickening.
'Doubling down on stupid is not a particularly good idea'~Breitbart
Hmm, perhaps we can roll
September 24, 2009 - 16:32 ET by Dan The Man 2Hmm, perhaps we can roll all those 401K's and IRA's into the SSI system and make sure we give those holder of the 401/IRA an IOU for the value of their holdings. Remember the governement dictates the rules for those and can and does change teh rules in midstream.
The most scary for me if they come after my defined pension plan and convert me to SSI. That would be devastating.
Dan,
September 24, 2009 - 16:57 ET by R D HelmGoing after private retirement money is an idea the dims were kicking around in the early 1990's, just before they lost control of congress.
Don't think for a second that they won't try and do it, as I expect it at any time.
-Dave
I agree with Rush. It's time for Obama to resign.
Re IRA/401K
September 24, 2009 - 17:19 ET by slickwillie2001Yes they have, and if they can get away with it I expect they might do it.
Democratics have also chafed at the thought of all the unclaimed capital gains out there. At present you don't pay cap gains until you sell a stock; they would like us to pay capital gains on some kind of market value at year-end. They have even discussed the concept of 'unreceived income', whereby for example if you live in a house that is larger than you need, you should pay income tax on the income that you would receive had you taken a boarder, even if you don't. There is no end to how imaginative the democratics can get if we let them.
All money belongs to the government, and they let us keep some of it, or not, at their leisure.
I am gonna disagree with you Mr. Helm.
September 24, 2009 - 23:38 ET by JWF401k's and IRA's are private property. I have stocks in mine. Stocks are pieces of a company. Ownership in a company.
For the government to march in and take it is the same as marching in and taking your house or bank account money.
What they can try and possibly do, is to take away the tax advantage. Make them taxable.
Sincerely,
a Veteran of a 1000 psychic wars.
401k's and IRA's are
September 25, 2009 - 00:43 ET by Dan The Man 2401k's and IRA's are private property.
Sorta, they are regulated and allowed by the IRS rules. I believe the car companies were owned by stockholders and lienholders and look what happened. Change the rules to be more restrictive and roll them under the SSI and wala you have teh new and improved vehicles. All teh better to protect teh citizen consumer.
Never say never when dealing with this admin and Duh One. Get ready for guvmint healthcare.
render unto Caesar
September 25, 2009 - 00:55 ET by candanceMany people misunderstand what Jesus meant by that quote. He held up a Roman coin and asked them what was printed there. They were forced to admit that Caesar's face was inscripted on the money. Jesus' point was simple: this is not wealth, this is a trinket you got from the Roman government, and they will eventually expect you to give it back.
When you factor this into the mix:
September 24, 2009 - 16:55 ET by R D Helmhttp://www.cnbc.com/...
It gets even worse.
Much worse.
-Dave
I agree with Rush. It's time for Obama to resign.
HSBC throwing the dollar under the bus
September 24, 2009 - 21:30 ET by candanceThe largest bank firm and the 6th largest overall company in the world, HSBC is not to be trifled with. They are one of the most influencial firms that deal in currency exchange.
And they've given the West a dire warning about the future.
Thanks for nothing, Bush, Pelosi, Bernanke, Obama, and all of you! Being a superpower was fun while it lasted.
→ candance
September 24, 2009 - 22:01 ET by Cool ArrowThanks. That next crash is coming.
The money flows out and the party's over.
Don't bother, the utility company will turn out the lights on you way out the door.
Meet the new boss.
"主持人：现在我们连线东吴证券策"
And nobody in government
September 24, 2009 - 21:49 ET by RR GOPAnd nobody in government gives a crap. The Parisians would have set up cobble stone barricades in the streets long before now if they had to put up with what we have.
We're an amazingly sheepish country. We'll fight over women, drugs, the right of way on a highway, X-Boxes and Cabbage Patch dolls, but little else.
One of the 34% who thinks George W. Bush was a great President. One of the 86% who wants to bring back the stock and pillory.