August 15th, 2008
What Future?
Dear Government. I left my peace dividend on the coffee table
and now it’s missing. I was counting on that for my future.
P.S. Please send cash only. I no longer accept debit checks.
Human beings are the only creatures on earth
that allow their children to come back home.
Quotation from Bill Cosby
And my parents finally realise that I’m kidnapped and
they snap into action immediately: they rent out my room.
Quotation from Woody Allen
See also Wireheads, a great comic by Jim “Jimbo” Hillin. I recently did this guest comic for him. Buy his book.
August 15th, 2008 at 5:08 am
I wouldn’t count on it, first of all you have to either pay back the 9 trillion existing debt as at August 2008( and rising with future known government large deficits) or meet the continuing interest costs.
Your Social Security System is called a pay as you go( because you don’t set aside funds for future liabilities) but it should be called borrow from the future to pay for the present because your not actually paying for it as you go, but rather borrowing to pay for it
Taking into consideration an ageing population base, the inevitable increased heath care and the consequential reduced tax paying workforce proportion, future generations will struggle just to pay the interest on the debt let alone pay the social security payments. You see you have a double whammy, a greater pool of recipients combined with rising debt. Its time to put pressure on your candidates now for sensible sustainable solutions.
I quote an extract from your own Government Accounting Office ~Long Tem Fiscal Outlook
Simply put, the federal government is on an unsustainable long-term fiscal path.
Best wishes
lindsaylobes last blog post..Peak Oil
August 15th, 2008 at 7:57 am
Morning, Seraphine; A serious and then a funny observation. First: I’ve never seen the government get involved in anything without screwing it up. Look at Amtrak. Second: If you scroll down the header for today just to the shoes those kids are wearing, you would have to say…”Wait! Where’s Seraphine?!” lol!!!!!!!!!!
August 15th, 2008 at 8:14 am
The government gives us a pension here when we reach 65
Scaramouche Joness last blog post..Scaramouche’s Friday Facts 36
August 15th, 2008 at 8:18 am
This is a depressing post.
LINDSAY, with all respect, your outlook or analysis is a bit blown out of proportion, at least so I hope! (smiling for a while before continuing typing more on this comment …)
Social Security funds in the US are actually real money, separated from the national budget. The Bush Republicans tried to privatize these “left-wing-socialism” assets, without avail…
The only problem is, that the government started to use the SS funds as security for new loans abroad, mostly China (chuckle). So, the 9 trillion deficit still rests independently in the laps of Washington lawmakers as of today. Social Security, if push comes to shove, will be dispersed even if we have to start an other war to do so.
We are good until about 2025, after that the numbers don’t compute anymore in the positive, I acknowledge that.
I tell you what the Swiss did. They call it additional “columns” to the existing retirement funds. The employer and the employee pay in extra cash to the coffers on a voluntary basis. It sort of works … for now!
Perhaps the big USA could learn something from that little Switzerland … perhaps, or at least have a closer look how other countries are dealing with the growing population that ages and has to be taken care of.
Zees last blog post..Ok, I will have to clean up my act and talk to you later while the corn grows high
August 15th, 2008 at 8:48 am
Yep things are not going to be fun in the future. My guess is eventually we will have such a bad economy from the massive debt that China will finally be able to finish buying us. So my advice to you is to learn mandarin and learn it well. It won’t happen too soon but it will happen.
Great quote form Woody Allen. Too funny.
August 15th, 2008 at 11:03 am
MATTHEW:
Hjo ho jang chu sim so min!
Zees last blog post..Ok, I will have to clean up my act and talk to you later while the corn grows high
August 15th, 2008 at 11:42 am
Zee ~Your Social Security system is a pay as you go system since payments to current retirees come from current payments into the system and there is virtually no provision for future liabilities.
In 2007 the cumulative excesses of social security taxes collected over what has been paid out was estimated at 2.2 trillion but in economic terms its holds no signifance since these funds were lent back to the Government to fund successive government deficits .
You might say that is an accounting trick since you have a surplus, but since you lend those surplus funds back to the Government to fund their spending it’s no longer a surplus.
The question to ask is ‘was the money spent from that surplus or not’? ~Yes it was!
Let me summarize the current position.
Total Government Debt at the end of 2007 was 9 trillion according to the Federal Debt Report and included in that amount owed (according to your Treasury) is 4 trillions owed to social Security Trust Funds. In the Social Security Fund Accounts its represented by the equivalent in non marketable IOU‘s ~ e.g. Government paper. The funding to redeem this debt has to come back from the Government who issued the paper to cover the debt in the first place. Shifting debt from the public sector to Trust Funds does not change the fact it is still a debt.
The question of whether or not current taxes fund social security is unrelated to the fact you actually owe 9 trillion at the moment, of which 4 trillion is owed back to the Social Security Trust Fund.
That’s real enough.
Best wishes
lindsaylobes last blog post..Peak Oil
August 15th, 2008 at 5:04 pm
You know Lindsay, best wishes to you too - I sincerely like you and respect your contributions tremendously!
But the government’s debt has nothing to do (or hardly) with the social security funds kept in the US from every citizen. Maybe I am naive, maybe I am wrong. I can’t believe that almost half of the deficit is actually borrowed on the accounts of retirees!
In any case, being in the position I am in right now (freelancing), I presently don’t waste much money to pay into that pool. It is just unfortunate that future generations will have no benefits though, no matter what you do, if you pay - or if you don’t.
My personal retirement plan can be described as such: Work until you break your back, then get buried.
Good wishes to you Lindsay - Lukas.
Zees last blog post..Ok, I will have to clean up my act and talk to you later while the corn grows high
August 15th, 2008 at 9:30 pm
Don’t worry too much kids. You’re still in the top 5 or 10% of all humanity and the old folks have saved a bunch of dough anyhow. Just worry about the poor ones! Interesting post.
Garys last blog post..Proud dad posts song…
August 16th, 2008 at 2:38 am
Woody Allen’s parents were right. You don’t own your children as kind of pets, and your children don’t owe you gratefulness, but respect. Even if this respect can only be expressed by not wanting to have any contacts with you anymore. A marriage or a “new, other life” can be complicated enough not to let it get more complicated by also satisfying your parents in their cuddling and interfering needs. Sounds hard but is also in line with the divine commandment “honor your father and mother”. Jesus even recommends to leave them to follow Him.
Erik Tjallinkss last blog post..Everybody their own State, at what costs?
August 16th, 2008 at 2:41 am
BTW, I forgot: I dedicated a picture to you on my photoblog, and would appriciate if you took a look!
Erik Tjallinkss last blog post..Everybody their own State, at what costs?
August 16th, 2008 at 10:22 am
That reminds me I should really have kids sometimes to pay off my future debts…
Zhus last blog post..Heart Of The Country
August 16th, 2008 at 12:18 pm
that´s for sure…
a kiss
Kiras last blog post..My own "Chanel" wool polo-neck Sweater
August 16th, 2008 at 3:43 pm
Another amazing and very true one!
And I love the quotation from Bill Cosby!!!
Carolina Langes last blog post..Versatile
August 16th, 2008 at 4:07 pm
I retired for fifteen years while I was still young enough to enjoy it. Now I expect to work til I drop and I’ll keep on having as much fun as I can while doing so.
susans last blog post..do you have air?
August 16th, 2008 at 8:37 pm
Hi Zee
At the risk of becoming very much a bore on the subject I think I can reliably say wht you dont believe iis the truth in a nutshell.
Let me try and convince you with what I promise will be my very last word on the subject.
The proof is as simple and straightforward as visiting your official US treasury website where national debt is updated daily and you have statistics going back to 1993. U.S. Treasury
http://www.treasurydirect.gov/NP/BPDLogin?application=np
If you visit you will notice holdings of the debt of 9.5 trillion are held by the public at 5.4 trillion and 4.1 trillion is held in intergovernmental holdings.
Public debt is what is held by the public, in such commonly known instruments as Treasury bills and Savings bonds. Intergovernmental holdings as the name suggests is when the government borrows the money from itself—which is mostly borrowing money from Social Security
Your Social Security Administration is legally bound to take up all of its surpluses and buy U.S. Government securities, and as the U.S. Government sells those securities—they then become intergovernmental holdings.
That’s why they it is a signifact part of the total government debt at 4.1 trillion.
What I’m attempting to illustrate is the unsustainable nature of current fiscal policy. When your Social Security system runs into trouble around 2017 because of insufficient contributions because of retiring baby-boomers, it will start cashing those securities and will expect the Government to pay it back, with interest. The problem is the government doesn’t have the money.
Best wishes
lindsaylobes last blog post..Peak Oil
August 16th, 2008 at 8:54 pm
Hi Zee
Let me try and convince you with what I promise will be my very last word on the subject.
My reference is the official US treasury website where national government debt is updated daily and you have statistics going back to 1993.
http://www.treasurydirect.gov/NP/BPDLogin?application=np
The debt of 9.5 trillion is held by the public at 5.4 trillion and 4.1 trillion is held in intergovernmental holdings.
Public debt is held in such commonly known instruments as Treasury bills and Savings bonds. Intergovernmental holdings as the name suggests arises when the government borrows the money from itself—which is mostly borrowing money from Social Security
Social Security Administration is legally bound to take up surpluses and buy U.S. Government securities, but when the U.S. Government sells those securities—they become intergovernmental holdings. When your Social Security system runs into trouble around 2017 because of insufficient contributions it will start cashing those securities and will expect the Government to pay it back, with interest. The problem as I see it is the government doesn’t have the money.
Best wishes
lindsaylobes last blog post..Peak Oil
August 17th, 2008 at 10:54 am
Social Security is one of those things that really binds my panties. I just love paying for things that I will never see, use, or benefit from.
John J Savo, the Authoring Auctioneers last blog post..An Epic Pain in the Ass
August 19th, 2008 at 2:34 am
I love lindsatlobe’s comments, I think I’m gonna become a regular of his blog… So once again I guess I have to thank you Sera!
Eidurs last blog post..Mixing the Vibe: ill, tired & Uninspired (August 2008)
August 19th, 2008 at 10:58 am
Yes it is all going down the toilet.
Rass last blog post..Day For Night