General Discussion

Yo_Mama

(8,303 posts)

101. Both programs are running a cash flow deficit.

Thu Oct 17, 2013, 10:21 PM

Oct 2013

2026 is the current exhaustion date for the HI fund. That depends on continued cuts to benefits, so it is not clear it will last that long.

DI is going to be exhausted in 2016, at which time the current belief is that they will move money from the SS trust fund to keep funding DI. If they do not do that, people receiving disability benefits will have cuts of 15% or more by the end of 2016.

If they do that, the SS trust fund will be exhausted in 2033. Or thereabouts.
http://www.ssa.gov/oact/trsum/

But the central point is that when trust fund assets are "tapped" to pay on these programs, what actually happens is that debt which was not marketed before has to be issued on the market. Right now the Fed is buying the debt, but it cannot continue to do this for 20 years. 4

This is beginning to add up fast.

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The president said it again: Our problem is with Social Security and Medicare. [View all] jsr Oct 2013 OP

So, it's obvious that we still have some major work to do here. CaliforniaPeggy Oct 2013 #1

He's right about the projected expenditures. randome Oct 2013 #4

Expenditures from rich people raiding it? leftstreet Oct 2013 #12

The 'raiding' is only on paper but you're right, it should never be used for ANYTHING else. randome Oct 2013 #15

You have to buy your own insurance. It's not Medicare leftstreet Oct 2013 #18

But the President was talking about SS and Medicare. randome Oct 2013 #23

Yes. You brought up private insurance leftstreet Oct 2013 #25

I meant 'health insurance' as in Medicare, not ACA. randome Oct 2013 #28

Medicare is not self-funded and never was. bornskeptic Oct 2013 #45

We Medicare recipients are paying for it. RebelOne Oct 2013 #53

Both programs are running a cash flow deficit. Yo_Mama Oct 2013 #101

No he is not. SS has enough revenue to cover its obligations, thanks to the American Working Class sabrina 1 Oct 2013 #34

Yeah, what Sabrina said. Could not agree more. JEB Oct 2013 #54

He doesn't know what he is talking about, only repeating what his puppetmaster Peter J. Peterson duffyduff Oct 2013 #97

PLUS ONE! Enthusiast Oct 2013 #117

He has never supported raising the cap. Not once! AnotherMcIntosh Oct 2013 #129

Well, he should. randome Oct 2013 #130

No he shouldn't. That would be a betrayal of the rich and the trickle-down theory. AnotherMcIntosh Oct 2013 #133

Betray away! randome Oct 2013 #135

Pssst, not everything is about 'political capital'. In fact to a vast majority sabrina 1 Oct 2013 #140

Link. NCTraveler Oct 2013 #2

A transcript should be available shortly. jsr Oct 2013 #8

Thank you. NCTraveler Oct 2013 #14

Here is a link to what he just said: jsr Oct 2013 #24

Great, it was expected. So here's the obligation they have around 'things' like Medicare and SS'. sabrina 1 Oct 2013 #39

Who knows what he means it changes..but, Recommend. The fix KoKo Oct 2013 #80

Excellent post. I agree 100%. NCTraveler Oct 2013 #116

For sure there are challenges with long-term obligations regarding medicare and ss. DCBob Oct 2013 #42

Great... haikugal Oct 2013 #3

+infinity newfie11 Oct 2013 #17

+ another infinity Scuba Oct 2013 #20

and nothing about the 1% and corporate tax dodgers shortchanging the country ... Myrina Oct 2013 #30

It's never mentioned. Enthusiast Oct 2013 #118

As Denis Leary would say, Two Words: LondonReign2 Oct 2013 #5

He said that because we need to insure that these programs get stronger awake Oct 2013 #6

SS is one of the strongest Fiscal programs we have right now. All it needs to ensure it remains sabrina 1 Oct 2013 #41

Grrrrr progressoid Oct 2013 #7

Well if you are planning on giving away more jobs then the tax revenue will continue to drop. L0oniX Oct 2013 #9

It's an excellent speech, meant to unite. Getting pissed defeats the point. nt BluegrassStateBlues Oct 2013 #10

Thats right he is being the President of all of america not just us here awake Oct 2013 #11

Yep. This OP is divisive and part of the problem. nt BluegrassStateBlues Oct 2013 #26

there is good reason to be concerned. magical thyme Oct 2013 #27

+1 GreenPartyVoter Oct 2013 #103

+2 Enthusiast Oct 2013 #119

+3 Nailed it! n/t fredamae Oct 2013 #128

+4 nt stillwaiting Oct 2013 #131

Not reallly...He chastised "extremists in both parties"....Dissed Bloggers and Media. KoKo Oct 2013 #60

+1 GreenPartyVoter Oct 2013 #104

Very well said, KoKo. Enthusiast Oct 2013 #120

Rather, pissing off your audience misses the point. I suppose now we're going to Egalitarian Thug Oct 2013 #88

I cannot stand this constant attack from the Tea Party AND from WITHIN, aka, the neo-liberals merbex Oct 2013 #13

I don't understand your ire. dixiegrrrrl Oct 2013 #38

Good for you - I'm tired of the obfuscation merbex Oct 2013 #44

Message auto-removed Name removed Oct 2013 #61

This message was self-deleted by its author stillcool Oct 2013 #79

I agree...why wouldn't a Democratic President stand with the Dems who Elected Him! KoKo Oct 2013 #83

Neoliberalism is EVIL, EVIL, EVIL duffyduff Oct 2013 #99

Raise the damn cap! Enough said! Nt newfie11 Oct 2013 #16

Eliminate the damn cap. Problem solved! SammyWinstonJack Oct 2013 #21

Medicare is the much bigger problem. dkf Oct 2013 #22

Nah. PETRUS Oct 2013 #64

Isn't that the truth! dkf Oct 2013 #70

No politician wants to piss off the big donors. PETRUS Oct 2013 #71

We haven't begun to educate people on this subject. dkf Oct 2013 #74

And we shouldn't enable their cowardice. closeupready Oct 2013 #81

plus one. Tuesday Afternoon Oct 2013 #77

In so far as universal healthcare remains a goal... Chan790 Oct 2013 #85

Translation..... HooptieWagon Oct 2013 #19

And they don't want to have to pay back the trillions they borrowed from the SS Fund. sabrina 1 Oct 2013 #43

Yep, that too. HooptieWagon Oct 2013 #51

Only if you're trying to sensationalize what he said frazzled Oct 2013 #29

What nonsense. We don't need 'exemptions'. Every person who paid into the fund did so the same way sabrina 1 Oct 2013 #46

Sorry that you didn't fully comprehend the issues here frazzled Oct 2013 #52

As a Democrat I assure you I have educated myself fully on this issue, a cornerstone of Democratic sabrina 1 Oct 2013 #56

The President says, "We have to eat our peas." Enthusiast Oct 2013 #123

Sabrina has it right hardcover Oct 2013 #110

Exactly, thank you!! sabrina 1 Oct 2013 #111

Center for American Progress and Center for Budget and Policy Priorities are linked pottedplant Oct 2013 #63

No, Slate called them liberal, as does every other arbiter of such things frazzled Oct 2013 #72

ROFLMFAO n/t Oilwellian Oct 2013 #102

The "arbiters of such things" are allied with Pete Peterson. Enthusiast Oct 2013 #124

Welcome to DU gopiscrap Oct 2013 #108

I'll take Chained-CPI along with reduced Medicare cost sharing, programs that help the young, etc. Hoyt Oct 2013 #84

I can't believe you believe this. Cleita Oct 2013 #86

Many of us are though. And 15 years or so from now, if economy does not improve, Hoyt Oct 2013 #90

So you think that doing it on the backs of the poorest Cleita Oct 2013 #91

Did I say that? Did I not say earlier "as long as there are protection . . . . ."? Hoyt Oct 2013 #92

Most of those poor people are on SSDI and other govt programs that Cleita Oct 2013 #93

Didn't say a thing about getting rid of anything, or even reducing anything. Hoyt Oct 2013 #96

Liberal think tanks? Enthusiast Oct 2013 #122

NO, our "problem" is with MILITARY EXPENDITURES!! grasswire Oct 2013 #31

I agree, it's really getting out of hand. B Calm Oct 2013 #40

So true! Now there's the real "third rail," eh? GreenPartyVoter Oct 2013 #105

Simple "fix" of the long term problem with Social Security awake Oct 2013 #32

Simple "fix" of the long term problem with Medicare awake Oct 2013 #33

Thank you - TBF Oct 2013 #36

It is not too late to add the option of buying into Medicare awake Oct 2013 #67

He's been saying it since the first state of the union address - TBF Oct 2013 #35

I listened to the speech. What you are implying is a distortion of MineralMan Oct 2013 #37

They let the President take his victory quarter lap... Jeff In Milwaukee Oct 2013 #48

It's funny, too. Having listened to the President's remarks, MineralMan Oct 2013 #50

Paul Ryan says the same thing - the Republicans want to strengthen these programs Samantha Oct 2013 #87

Both the President and Nancy Pelosi have suggested Chained CPI as a mechanism for Enthusiast Oct 2013 #125

It's going to happen. AnotherMcIntosh Oct 2013 #134

If it happens before the 2014 election it will Enthusiast Oct 2013 #136

He's like a prize fighter that holds a palooka up in a clinch so that the round won't end. AnotherMcIntosh Oct 2013 #138

+1 uponit7771 Oct 2013 #66

Math is math. The government OWES Social Security a lot of money. phleshdef Oct 2013 #47

The other alternative... Jeff In Milwaukee Oct 2013 #49

+1. Stop outsourcing our manufacturing jobs as with the proposed TPP. Enthusiast Oct 2013 #126

Maybe he has too many Republican advisors. Too many in his cabinet and elsewhere. AnotherMcIntosh Oct 2013 #137

The federal government can't go broke. Obama is repeating Cato Institute, Peterson lies duffyduff Oct 2013 #100

Our "problem" is with the private health insurance industry telling us what to do. Leopolds Ghost Oct 2013 #55

I thought about you whenI came across this: NYC_SKP Dec 2013 #142

This is it!!! Here it comes!!! Any second!!! JoePhilly Oct 2013 #57

Message auto-removed Name removed Oct 2013 #58

Yes, the govt needs to put back the 2.4 trillion Rex Oct 2013 #59

Yes they do need to put it back. lonestarnot Oct 2013 #109

This message was self-deleted by its author polichick Oct 2013 #62

The "problem" is that the DC legislators have stolen the money in those funds SoCalDem Oct 2013 #65

This is why we can't have nice things. GeorgeGist Oct 2013 #68

Social Security has a problem pnwmom Oct 2013 #69

Stop paying FICA taxes and see what a big problem it is. kentuck Oct 2013 #73

Here's an idea - eliminate the cap on SS tax, and put a bit more of FICA towards Medicare muriel_volestrangler Oct 2013 #75

time to open the Overton window to the left again: harm SSI and Medicare and I support impeachment NuttyFluffers Oct 2013 #76

psst. Mr. President. over here! Deep13 Oct 2013 #78

"Our"? Um no, Your. Most people don't have a problem with it. closeupready Oct 2013 #82

Here's what the President said: ProSense Oct 2013 #89

If he goes for Chained CPI I will support privitization or repeal Demo_Chris Oct 2013 #94

Shock Doctrine/ Starve the Beast is action. morningfog Oct 2013 #95

Yep. And it's both political parties responsible for this duffyduff Oct 2013 #98

Fix SS and Medicare? bkkyosemite Oct 2013 #106

How can our long-term obligations to SS be an issue... Oilwellian Oct 2013 #107

We will have to cash the trust fund in over the next two decades madville Oct 2013 #113

There is a problem, here is the link madville Oct 2013 #112

Good post. Worse, those projections are based on rosier economic projections Hoyt Oct 2013 #114

Facts mean nothing to some of those on this thread. randome Oct 2013 #121

You seem to think depletion of the trust fund will be a disaster. Lasher Oct 2013 #141

Obama's been a deficit hawk from day one. joshcryer Oct 2013 #115

and our problem with SS and Medicare IS . . . annabanana Oct 2013 #127

I wouldn't want to try to repeat that while intoxicated, but you're absolutely right. n/t winter is coming Oct 2013 #132

We have to give lying criminal repukes credibility to continue the left/right paradigm fraud Corruption Inc Oct 2013 #139