Social Security System is running ‘in the red’ – lOUs now being redeemed to fund current obligations

The Burning Platform –  Jim Quinn (Excerpts):

“Liberals hate math. The Social Security System has an unfunded liability of $18 trillion. This means our politicians have promised $18 trillion more than they can possibly pay out.”

“99% of all Americans don’t understand what unfunded liability even means.”

“The Social Security system had a negative cashflow of $47.8 billion last year, after running a $48 billion deficit the year before. You may notice that 77% of this deficit was created by the SSDI program, where the depressed masses gather after their 99 weeks of unemployment run out.”

“There are nothing but IOU’s in the [Social Security] vault. The $2.7 trillion is long gone. The U.S. government had to borrow $47.8 billion to fund SS last year. They will have to borrow over $50 billion this year. There will be 10,000 per day turning 65 for the next decade. The borrowing will rise exponentially. If the $2.7 trillion actually existed, why would we need to borrow?”  Full article

…………………………………………………………………….

The Leviticus 25 Plan will deliver liquidity direct to American families, allowing Americans to reduce / eliminate debt.  Before the economic storm hits.

Updated version: The Leviticus 25 Plan – An Economic Acceleration Plan for America 2014 (6)

The true U.S. debt – a ‘staggering’ $86.8 trillion. A bold, new plan is imperative.

“Why $16 Trillion Only Hints at the True U.S. Debt”

WSJ  11-27-12 Chris Cox, Bill Archer – excerpts:

“The U.S. Treasury “balance sheet” does list liabilities such as Treasury debt issued to the public, federal employee pensions, and post-retirement health benefits. But it does not include the unfunded liabilities of Medicare, Social Security and other outsized and very real obligations.

As a result, fiscal policy discussions generally focus on current-year budget deficits, the accumulated national debt, and the relationships between these two items and gross domestic product. We most often hear about the alarming $15.96 trillion national debt (more than 100% of GDP), and the 2012 budget deficit of $1.1 trillion (6.97% of GDP). As dangerous as those numbers are, they do not begin to tell the story of the federal government’s true liabilities.

The actual liabilities of the federal government—including Social Security, Medicare, and federal employees’ future retirement benefits—already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure.

As of the most recent Trustees’ report in April, the net present value of the unfunded liability of Medicare was $42.8 trillion. The comparable balance sheet liability for Social Security is $20.5 trillion.

…………………..

Nothing like that $8 trillion amount is available for the IRS to target. According to the most recent tax data, all individuals filing tax returns in America and earning more than $66,193 per year have a total adjusted gross income of $5.1 trillion. In 2006, when corporate taxable income peaked before the recession, all corporations in the U.S. had total income for tax purposes of $1.6 trillion. That comes to $6.7 trillion available to tax from these individuals and corporations under existing tax laws.

In short, if the government confiscated the entire adjusted gross income of these American taxpayers, plus all of the corporate taxable income in the year before the recession, it wouldn’t be nearly enough to fund the over $8 trillion per year in the growth of U.S. liabilities. Some public officials and pundits claim we can dig our way out through tax increases on upper-income earners, or even all taxpayers. In reality, that would amount to bailing out the Pacific Ocean with a teaspoon. Only by addressing these unsustainable spending commitments can the nation’s debt and deficit problems be solved.

________________

A bold, new plan is ‘revving its engine.’

The Leviticus 25 Plan.

 

Europe’s grand, ‘central planning,’ fiat money printing extravaganza – a colossal failure. America on the same road…

The details on Europe (excerpts from The Coming Depression blog, ) :

 [America] should be watching, because this is what happens when nations accumulate too much debt. The United States has the biggest debt burden of all, and eventually what is happening over in Spain, France, Italy, Portugal and Greece is going to happen over here as well.

The economic implosion of Europe is accelerating. Even while the mainstream media continues to proclaim that the financial crisis in Europe has been “averted”, the economic statistics that are coming out of Europe just continue to get worse. Manufacturing activity in Europe has been contracting month after month, the unemployment rate in the eurozone has hit yet another brand new record high, and the official unemployment rates in both Greece and Spain are now much higher than the peak unemployment rate in the United States during the Great Depression of the 1930s. The economic situation in Europe is far worse than it was a year ago, and it is going to continue to get worse as austerity continues to take a huge toll on the economies of the eurozone.

It would be hard to understate how bad things have gotten – particularly in southern Europe. The truth is that most of southern Europe is experiencing a full-blown economic depression right now. Sadly, most Americans are paying very little attention to what is going on across the Atlantic.

The following are 20 facts about the collapse of Europe that everyone should know…

#1   10 Months: Manufacturing activity in both France and Germany has contracted for 10 months in a row.

#2   11.8 Percent: The unemployment rate in the eurozone has now risen to 11.8 percent – a brand new all-time high.

#3   17 Months: In November, Italy experienced the sharpest decline in retail sales that it had experienced in 17 months.

#4   20 Months: Manufacturing activity in Spain has contracted for 20 months in a row.

#5   20 Percent: It is estimated that bad loans now make up approximately 20 percent of all domestic loans in the Greek banking system at this point.

#6   22 Percent: A whopping 22 percent of the entire population of Ireland lives in jobless households.

#7   26 Percent: The unemployment rate in Greece is now 26 percent. A year ago it was only 18.9 percent.

#8   26.6 Percent: The unemployment rate in Spain has risen to an astounding 26.6 percent.

#9   27.0 Percent: The unemployment rate for workers under the age of 25 in Cyprus. Back in 2008, this number was well below 10 percent.

#10   28 Percent: Sales of French-made vehicles in November were down 28 percent compared to a year earlier.

#11   36 Percent: Today, the poverty rate in Greece is 36 percent. Back in 2009 it was only about 20 percent.

#12   37.1 Percent: The unemployment rate for workers under the age of 25 in Italy – a brand new all-time high.

#13   44 Percent: An astounding 44 percent of the entire population of Bulgaria is facing “severe material deprivation”.

#14   56.5 Percent: The unemployment rate for workers under the age of 25 in Spain – a brand new all-time high.

#15   57.6 Percent: The unemployment rate for workers under the age of 25 in Greece – a brand new all-time high.

#16   60 Percent: Citigroup is projecting that there is a 60 percent probability that Greece will leave the eurozone within the next 12 to 18 months.

#17   70 Percent: It has been reported that some homes in Spain are being sold at a 70% discount from where they were at during the peak of the housing bubble back in 2006. At this point there areapproximately 2 million unsold homes in Spain.

#18   200 Percent: The debt to GDP ratio in Greece is rapidly approaching 200 percent.

#19   1997: According to the Committee of French Automobile Producers, 2012 was the worst year for the French automobile industry since 1997.

#20   2 Million: Back in 2005, the French auto industry produced about 3.5 million vehicles. In 2012, that number dropped to about 2 million vehicles.

……………………………………………

It is time for America to change course:  provide American families with the same opportunities for zero interest credit extensions that are being provided to major foreign and domestic financial institution.

The Leviticus 25 Plan – the only self-funding economic recovery plan in existence.