We are approaching a new crisis in guaranteeing that Social Security payments will go out on time. The federal government operates on a fiscal year that runs from October 1 to September 30. The current fiscal year will end on September 30 which is about three weeks from now.
Since 2010, the government has had to borrow approximately $50 billion each year to make up for the Social Security deficit. If the government is prevented from borrowing the needed money this year, because we are at the debt ceiling, there won't be enough money from Social Security tax revenue to pay full benefits.
At the moment, Republicans are threatening to refuse to raise the debt ceiling unless the new health insurance program is defunded. Like millions of other Americans, I watched the Congress fail to act in 2011, in disbelief. One of the results was that the government had its credit rating reduced for the first time in history.
We will probably see a repeat of that performance this year which may be even more damaging. Like everyone else, the government must have money in the bank before it can write checks. If tax revenue is insufficient the government usually borrows the needed money. But one the debt ceiling is raised, the government cannot borrow any more money.
People have been brainwashed into thinking that Social Security has $2.7 trillion in reserves. So they think Social Security benefits can be paid out of those reserves. But it's all a big lie! There are no cash reserves because the money that was supposed be in the trust fund has all been spent!
This is all explained in "The Looting of Social Security," a book that every American should read. That book can be downloaded from Amazon.com through Wednesday of this week at zero cost.
I am so pleased that more than 600 people have already downloaded the free book just since Saturday. But there are so many more who need to read the book. Why not download your copy now, and then pass the word onto as many people as possible.
