This article contains information that is extremely misleading:

http://apnews.myway.com/article/20090927/D9AVHRDG0.html

Social Security is projecting a deficit for at least two years. This means that more money is going out than is coming in. The article helpfully points out that this happened before in the 1980’s.

What is not mentioned is that in the 1980’s there was actually a surplus held by the Social Security Administration, and deficits were funded by reserves at that time (or at least the level of debt was something more manageable.)

The article points out that this spending will add to the Federal deficit. That is because the surplus fund for Social Security was depleted years ago and those funds were replaced by IOU’s issued by Congress.

There is no money in Social Security, only IOU’s, and now expenses exceed income.

How will we ever pay for the 2.5 Trillion dollars already owed to Social Security from past borrowing, while we are adding to the debt at the rate of at least 10 billion dollars per year and rising?

In an economy where an 18-25 year old faces 30 – 50% unemployment, with substandard public education, competing with nations that take their future seriously, I simply don’t see that this Ponzi scheme can survive.

The only thing we can be sure of is that this will end badly.

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