Well past estimates had Social Security going into a deficit around 2018 and the IOU’s being depleted around 2042. Not that Washington could ever be trusted to honor the IOU’s. Our criminal politicians would have made Social Security a welfare program around 2015 or so before the IOU’s would have started coming due. But with the demographics and economic downturn the program is going bust much sooner than expected. Try this year and 2010.

If the economy recovers, a big if with the communist and socialist in power, surpluses might last from 2011 to 2016 but then the demographics will sink the program once again permanently. Anyone wish they would have supported Bush’s 2004 effort to partially privatize Social Security? It would have been a start in relieving the Social Security system of this unsustainable burden that is going to sink like Michel Moore at the box office.

Social Security has been and always was an unsustainable ponzi scheme. People like my grandmother who paid 1.5% payroll tax and collected 25 or more years of payments love the program. They were at the beginning of the program, paid very little into it and received a lot of benefits. Now as the baby boomers from 1946 to 1964 retire the system will pay them zero or more likely negative returns. Bernie Madoff on a federal level. And in the end just like Bernie the taxpayers will be scrambling to salvage whatever stolen assets they can glean from the federal government.

And the malcontents in congress continue to push health care and other budget busters. Poverty for the masses and a few well off “cool” rich people left to enjoy and control the peasants at their disposal. Time for the peasants to revolt.

Here is the Heritage article by David C. John:

September 29, 2009

Social Security’s Unexpected Deficits Show Urgent Need for Reform

by David C. John
WebMemo #2632

Starting this year, Social Security will spend more in benefits than it will receive from its payroll taxes. This is somewhat unexpected as just last year, the 2009 cash surplus was predicted to be about $80 billion. Even in May of this year, the program’s actuaries predicted a roughly $19 billion surplus. However, they failed to allow for the full effects of the recession, and the soaring unemployment both reduced tax collections and increased the number of workers who were forced to take early retirement.

This is very bad news for taxpayers, but worse is yet to follow. The 2009 deficit of about $10 billion will be followed by a 2010 deficit of about $9 billion. If there is a strong recovery–which is questionable at best–the program could briefly return to surpluses. But by 2016, deficits will return and continue permanently. A far more likely scenario is that Social Security will run deficits from this point on.

And well they should! Three-quarters of Obamacare is to be financed by slashing $500 billion from Medicare over the next ten years. That comes to an eight percent cut. Next year’s total Medicare spending, for example, will be about $500 billion by itself, so this is like having one year without Medicare at all! Obama’s fatuous claim that the cut will not affect care for the elderly is specious as any thinking person would realize. We have gone through previous incarnations of those who wanted to slash Medicare and pretended that it would not affect the elderly. Newt Gingrich tried to sell this act of alchemy in 1995 and the elderly didn’t buy it then and aren’t buying it now!

It is obviously impossible to cut Medicare reimbursement without slashing the time doctors spend with patients. It is equally obvious that you cannot cover 30 million new patients without more doctors and nurses. And the Medicare cuts in doctors’ fees will, of course, cause a decrease in the number of medical professionals. Investor’s Business Daily conducted a poll in September which showed that 45% of all doctors said they would seriously consider retiring or closing their practices if the Obama bill passes. A larger number will likely refuse to treat Medicare patients. Indeed, current law provides for a 21% cut in Medicare fees to doctors next year and a 6% cut the year after. The new $500 billion in cuts are on top of these reductions! What kind of medical care do we expect our elderly to receive when the doctor who they visit is getting $35 or $40 for seeing them!

Whole story …