According to Money News the surplus of the Social Security Adminstration has run out. Originally they thought they had enough to get through 2017 but due to faulty Wall Street investments, all the money is gone!
So what does that mean for people who are already receiving Social Security payments? Will they stop? Will millions lose their only source of income? The ramificiations of such a huge loss and how could this happen? Social Security has been warning people for years that they were on the brink of insolvency. That if something wasn’t done and pronto that they were going to go bankrupt. In fact, any time you called Social Security you got a message to that effect on the other end.
This wasn’t the Social Security trust fund however, this was a surplus. A surplus that was supposed to take us to 2017 according to the article. So what happened? They gambled it on the stock market! We are not talking bonds or CDs that mature over time and will pay an interest on the principal amount. We are talking straight up, Las Vegas type roulette gambling of other people’s money! We are basically talking taking millons of taxpayer dollars and going, “Yeah I got 20 showing, hit me!”
So what is going to happen now that we have fettered all the money away? Well, we are going to have to go begging money from people like China and Japan. Yeah, because I am sure they are just thrilled to lend us money considering we are already in debt up to our ears with them.
“The decline means that the Treasury Department could be forced to borrow an additional $700 billion from foreign investors like China and Japan just as those seem unwilling to hold the trillions in bonds they already own.”
Now it is one thing when government borrows money from another government that will be used to help the country as a whole. It is quite another when it is borrowing money, specifically for a government run program like Social Security. Because then China can say, “Well since we are saving your Social Security system, we also get a say in how it is run.” I don’t see China giving us the money without that condition attached to it. And do we really want the Chinese with their notorious human rights abuses being in charge of any aspect of our government, especially Social Security that goes out our elderly and other vulnerable citizenry.
It is just too scary to think about. So if your next Social Security check comes in the form of yen, you know why.