I.O.U.S.A.: Byte-Sized – The 30 Minute Version

There is no movie I could recommend more than this one. This is a condensed version of 30 minutes but I would suggest you get the full movie.

Republic vs Democracy

Social Security Paid Out $37 Billion More Than It Took In Last Year.

The Congressional Budget Office shocked some but not all last week when it reported that Social Security paid out $37 Billion more than it took in last year some 3 years before the program was projected by some experts to run dry of funds.

Because of this, Social Security will now be forced to draw on its trust fund balance. A trust fund that in itself holds no real value. See, the way it works is… the trust fund simply represents a promise from one entity of the government ( The Treasury) to pay another arm of government ( Social Security); the government as a whole still needs to create this money from somewhere.

Kind of like an I.O.U. from one government account to another government account. The equivalent for example of a husband borrowing money from his wife when they share the same bank account in order to pay down his dept knowing that one day he will earn the cash to pay it back as long as his financial position such as his employment stays the same. The trust funds are simply claims on future general revenues. We all know it comes from the same account but in government this means raising more tax revenue, cutting back on other parts of the Federal budget, or even borrowing more money or using some combination of those options.

Even though Social Security’s future funding needs are small in comparison to those we currently face with Medicare and Medicaid.This is happening shortly before the program is set to begin to receive the vast majority of Baby Boomers who are about to qualify for benefits.

Looking ahead, CBO now projects that Social Security will run perpetual cash deficits, amounting to $547 Billion through the year 2021. By that year CBO projects that Social Security outlays will exceed cash income by $118 Billion.

We all know as responsible adults who are responsible for our own bills from day to day that we couldn’t do anything the way our government is handling our tax dollars. If you or I ran up our credit cards to the limit and then had the right to ignore that limit and to offer to pay one card down with another card it would be no different than what is being done with Social Security now. There is no real cash involved, just one number covered by another number that never has a chance of being payed down because it pays out more than it takes in. any business owner knows that you cant order $90,000 worth of inventory every month if you only sell $10,000 worth of product in that same time period.

Oh and as some do with their credit card payment when paying the minimum… The United States pays interest just like you when its done. But it ranges in the 100’s of millions of dollars a day. When we begin to borrow more to help pay for Social Security we WILL be locked into an even greater debt the Federal Government already knows it cannot pay down ever.

A 15 Word Response Is All That Was Required!

“We are monitoring the situation closely and our thoughts are with the people of Egypt.” Fifteen simple words that would have sent a message to Egyptian leaders, the citizens of Egypt and to the rest of the Middle eastern nations who are watching the west to see our reaction.

When a sitting United States President takes it upon themselves to give a statement that is filled with opinion and direct suggestive action in a sovereign nations affairs, it blatantly shows a US leader who is willing to get involved in one others affairs.

Up until President Obama commented that he felt the Egyptian President should not seek another political term the protests were generally nonviolent with the exception of a few looting incidents. That statement was then followed up by President Obama asking the sitting Egyptian President to immediately step down.

The following day, protests in the country took a different course when Pro-government, Anti-American protesters began to clash with Anti-government protesters. Clashes between the two groups have filled the streets with the sounds of gun shots and the images of fire and riots. Military tanks have replaced police vehicles and anti-American messages have now shown up on the homemade signs of protesters. Some believe we are seeing the beginning of an Egyptian civil war.

In a nation where more than 50% of it’s income comes from tourism. We now see foreign reporters being attacked in the streets while being told that being American is the problem. More than once making it clear that our country needs to mind it’s own business about Egypt.

It is not the place of any sitting American President, Democrat or Republican to voice his opinion in any other nations affairs. When doing so, you lead the people of that nation to believe they have future American support for their actions. Since then, more then 6 other nations in the region have begun to protest their governments. I wonder how long before the other countries protesters wait to see how long it will take the US President to give them support and a green light to ignore their nations laws.