In another twist in the American story that only God could author, the nation’s largest social program is beginning it’s implosion at the same time the Democrats are forcing through their health care monstrosity.
This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes – nearly $29 billion more.
Since the government has nothing but IOUs to pay the $2.5 trillion in debt that is Social Security, it will have to, once again, borrow money. However, Moody’s Investors Service warned today that the U.S. is at the brink of losing it’s “AAA” credit rating; which sent stocks falling on Wall Street. In order to keep U.S. credit in good standing, Moody’s recommends harsh and potentially unpopular policies that will test social cohesion. According to their report, the U.S. could face a downgrade in rating by 2013; and that’s without the current healthcare bill that the CBO has yet to even give a cost estimate. Once downgraded the cost of borrowing money would increase, making the $2.5 trillion in Social Security debt a drop in an alarmingly overflowing bucket.
Time to cue the snow God…