SSA

I posted this on March 15

My March 15th Post

Now this is being reported on In The New York Times today:

Social Security Needs Money
"This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office."

Graph
"Analysts have long tried to predict the year when Social Security would pay out more than it took in because they view it as a tipping point — the first step of a long, slow march to insolvency, unless Congress strengthens the program’s finances."

"Although Social Security is often said to have a “trust fund,” the term really serves as an accounting device, to track the pay-as-you-go program’s revenue and outlays over time. Its so-called balance is, in fact, a history of its vast cash flows: the sum of all of its revenue in the past, minus all of its outlays. The balance is currently about $2.5 trillion because after the early 1980s the program had surplus revenue, year after year.

That statement concerns me!

Now that accumulated revenue will slowly start to shrink, as outlays start to exceed revenue. By law, Social Security cannot pay out more than its balance in any given year."

I think this speaks for itself. The SSA is running through the money and will need to cash in some of it's IOU's. The government needs to come up with more cash for the SSA. That may be a problem. Will wait and see where they get this cash from.