There is a lot of fuzzy financial math floating around in Washington, D. C. these days.
Last week, the House passed the first hurdle of raising the debt ceiling onto the Senate for consideration this week. The debt ceiling, like the fiscal cliff drama, can be difficult for American citizens to follow. The debt ceiling is a request by the Obama Administration to have the U. S. Treasury print more money so the federal government can pay the bills it owes such as Social Security checks and military paychecks and whatever else is on the list. If the temporary debt ceiling bill eventually gets passed, it is only good until March 27 when the government is scheduled for its next default. Then, after that, other default hurdles are lined up for this summer and probably beyond.
The Social Security Trust Fund is supposed to have actual cash assets on hand. Apparently, the government does not have the cash on hand to write senior citizens their Social Security checks. It’s gone! Remember August of 2011? President Obama needed specifically an extra $20 billion to write the Social Security checks and the military paychecks at that time. Our government has borrowed the surplus and probably all of the cash from the Social Security Trust Fund by now and can’t pay it back. Apparently, the non-marketable securities (the government’s IOUs) are worthless. That is why Congress and the president are in panic mode to pass the debt ceiling so they can continue to cover up their greedy spending binges — like the wars in Iraq and Afghanistan. This is why the debt ceiling is a hoax. No other modern industrialized country has a debt ceiling. Why? Because their governments did not spend their citizens’ Social Security pension funds on endless wars and on bloated government agency budgets. Our federal government does not use Quicken Books. It uses the cooking-the-books accounting system!
It is time for a national audit of our federal government starting with the Social Security Trust Fund.