Tuesday, March 16, 2010

Social Security and The US Credit Rating

The day of reckoning is coming. President Obama and the Democrat Socialists that control Congress are actively working to bankrupt the United States. Obama's reckless deficit spending, projected to be $10 Trillion in the next ten years, if allowed to continue, is likely to be three times that amount. And, Obama wants to add a new HealthScare entitlement. This is fiscal insanity. This level of deficit spending is like no other in the history of the United States and it will lead to economic disaster if not stopped and soon. We are already seeing the warning signals.

It was just announced that for the first time since the 80's, the Social Security Administration will take in less money in 2010 than it pays out. The Social Security surpluses that have been funding deficit spending for years are over. In fact, the Social Security Administration will have to retrieve $29 Billion in federal IOU's to pay current recipients their Social Security checks this year. Since 1965, the federal government has given the Social Security Administration Trillions in IOU's as they stole Social Security contributions to pay for current operating expenses. There is NO Social Security Lock Box. The money is gone.

As 78 million Baby Boomers retire in the next 10 years, the Social Security Administration will have to come up with about $44 Trillion that is not there. This unfunded liability will have to be funded by the federal government as the Social Security Administration attempts to retrieve those IOU's. However, it is projected that by 2037, Social Security will be completely bankrupt. If not stopped, the Obama Administration is planning Trillions in deficit spending already in the next ten years even with tax increases, so just where is this money going to come from to fund Social Security?

That is exactly the question Moody's Investor Service is asking as they have warned that if Obama's deficit spending is not brought under control that the credit rating of the United States will have to be lowered from its Triple A rating. If that happens, the United States is on its way to becoming a banana republic that will have to pay much higher interest rates to borrow money in the financial markets. The United States is reaching unsustainable debt levels. If this continues, the interest on the debt alone will begin to eat up most of our tax dollars. The end result will be that the Federal Reserve will be forced to monetize the debt, which will lead to much higher interest rates for all, high inflation and the collapse of the dollar.

To prevent all of this, we must take back our country in 2010 and 2012 by electing common sense Conservatives who support a balanced budget, lower taxes and less regulation, term limits, a strong national defense, real energy Independence, the right to bear arms, the sanctity of life and family values. We must get back to the tenets of the US Constitution, as written by our Founding Fathers, not former Presidents, Congresses and the Courts. This is the winning platform. We have to elect grown up's who have worked in the real world. We can do it. We must do it to save our country from economic collapse.

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