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ALERT: U.S. Govt misses a major semiannual payment to Social Security Trust Fund etc.

Discussion in 'U.S. Politics' started by Little-Acorn, Jul 28, 2011.

  1. Little-Acorn

    Little-Acorn Well-Known Member

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    The Social Security Trust fund is one of a group of such trust funds the Federal Govt handles. (Another is the Railroad Workers Retirement Trust fund). This group of trust funds is call the "Government Accounts" series, in bureaucrat-speak.

    Twice a year, the government is required by law to make a major payment into the Government Accounts fund, on June 30 and December 31 of every year, to maintain the funds at viable levels.

    On June 30, 2011, they missed the payment, for the first time since the funds were started. Are you worried about the government defaulting on its payments with the budget crisis getting bigger and bigger? Well, they just did.

    Money is normally paid out of these funds to make Social Security payments to senior citizens, retirement payments to railroad workers, etc. And as mentioned, the fund are refilled twice a year, as required by law. But not this time.

    On June 30 and Dec. 31, large transactions (deposits to the accounts, and payments out of them) are normally made to these accounts. And the government publishes a Daily Treasury Statement report detailing them (and all other Treasury activity). Until this year, the net amounts have always been positive - more money has been put into the accounts, than has been paid out.

    So if you subtract the payments from the deposits on this special day, it has always come out positive - anywhere from +$40 billion to +100 billion or more, for the last 15 years or so.

    But not on June 30, 2011.

    I did the graph thing with Excel again. According to published government numbers, here's what the net difference looks like, on each of these semiannual major-payment days (end of the 3rd quarter of each fiscal year) since 1998. (That's as long as easily-available records have been kept by the Govt).

    [​IMG]

    Look at the column on the far right.

    As you can see, the surplus going into these accounts every June 30, has always been sizeable. But on the most recent payment date (June 30, 2011), a major shortfall occurred, of more than $40 billion dollars. The government failed to make its payment into the Social Security Trust Fund and the other funds in the Government Accounts series.

    Uh-oh.

    The Daily Treasury Statement reports for the semiannual payment date (the one that shows the shortfall) can be found at the Treasury's official government website at:

    https://www.fms.treas.gov/fmsweb/DTSFilesArchiveAction.do

    In that website, click on the year you want to see, then click on "Third Quarter", then scroll down to the last day in that quarter. It is always June 30 unless June 30 falls on a weekend, in which case it's the Friday before that weekend. Click on that day and you'd get the two-page report. On the second page, look for "Government Accounts" under Table III-B.

    Of course, the dollar amounts listed are all funny money. They get "borrowed" out on a regular basis, repaid, then "borrowed" again endlessly. But the U.S. Govt likes to tell us they are real, solid funds in those accounts.

    Well, the real, solid funds just shrank by a pretty major chunk. There is no way the government could have made the required payments except by borrowing a whole lot more - which would have put them in violation the National Debt Ceiling.

    Are you worried about the U.S. Govt defaulting? Well, they just did.

    And it's only going to get worse... because the spending goes merrily along, without slackening even a little bit.
     
  2. ThisTooShallPass

    ThisTooShallPass New Member

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    Re: ALERT: U.S. Govt misses a major semiannual payment to Social Security Trust Fund

    It should be noted that this is not a "default" in the sense the government fears.
     
  3. Little-Acorn

    Little-Acorn Well-Known Member

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    Re: ALERT: U.S. Govt misses a major semiannual payment to Social Security Trust Fund

    Right. That would be missing payments on the interest on the National Debt.

    This is missing payments into the Social Security fund and other such funds held by the Government.

    A distinction without a difference.

    We're in trouble, folks.
     
  4. steveox

    steveox Well-Known Member

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    Re: ALERT: U.S. Govt misses a major semiannual payment to Social Security Trust Fund

    Thats why the Tea party people will throw more deomcrats out in 2012. If you think Its bad back in 2010. Just wait til November 2012. And Democrats are in Seroius trouble in Wisconsin ever since they walked out cause the Teachers union protests
     
  5. ProudLefty

    ProudLefty New Member

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    Re: ALERT: U.S. Govt misses a major semiannual payment to Social Security Trust Fund

    Not to put too fine a point on it, but who is the character beating you in your avatar, steveox? I have been trying to figure it out for a while. I finally figured out that that beast is an ox, and you are steve ox, but I can not figure who it is with the club.

    By the way, TEA Party politicians are not looking good in this round. They are set to be one-termers if they don't mend their ways.
     
  6. Little-Acorn

    Little-Acorn Well-Known Member

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    Re: ALERT: U.S. Govt misses a major semiannual payment to Social Security Trust Fund

    Kudoes to the Republicans who are sticking to their guns and refusing to raise taxes! They are the ones objecting to Boehner's bill. Boehner seems to be playing the shopworn Republican tactic of sticking to his guns "for a while" and then gracefully conceding, and letting the liberals have their way yet again, with higher taxes, higher spending, and more crushing debt.

    Thank God we elected some in 2010 who finally have common sense AND who will stick to it!

    You new Republicans who are refusing to yield on taxes (after yielding on balancing the budget and yielding on paying off the National Debt), keep in mind: You didn't cause this present crisis, and you weren't elected to avoid it or put it off until later. You were elected to bring conservative fiscal sanity back to our government... which means stopping the insane spending, cut down (and eventually off) the constant deficits, and eventually start paying down the huge National Debt. So keep DOING IT as you are!

    Reinforcements will arrive in Nov. 2012. Hold the fort until then, and then you can start making plans to start solving the REAL problem: start paying down our immense debt.
     
  7. pocketfullofshells

    pocketfullofshells Well-Known Member

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    Re: ALERT: U.S. Govt misses a major semiannual payment to Social Security Trust Fund

    ya don't raise taxes....just wreck the econ and raise everyones interest rates! its so great!I mean if we raise taxes they could almost hit...what they where under CLinton!...or worse...what they where under ..Reagan.....or F-it..the last 100 years have all paid more...but lets pretend suddenly we are so overburdened....
     
  8. steveox

    steveox Well-Known Member

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    Re: ALERT: U.S. Govt misses a major semiannual payment to Social Security Trust Fund

    Thats the Jackass,,The Symbol of the Democratic party. Man is beating him cause Liberals are clueless.

     
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