A lot of doomsday Republicans have been saying that Social Security would be going broke some time in the future. Democrats have been dismissing that as just scare tactics and that Social Security was sound as a dollar. As recently as February of this year CNBC was telling us that it isn't until 2017 that Social Security is expected to be paying out more than it is receiving. A little over a year ago, while celebrating the 75th Anniversary of Social Security, then House Speaker Nancy Pelosi "blasted Republicans for trying to privatize the fund", according to The Hill.
At an event celebrating the 75th anniversary of the Social Security Act, Speaker Nancy Pelosi (D-Calif.) blasted Republicans for trying to privatize the fund, saying the change would have resulted in the trust fund incurring a massive loss because of the recent downturn in the stock market.And now it looks like Social Security has run out of money in 2011 and a partial privatization might have been a good hedge against the vagaries of the Federal Budget Crisis.
“Just five years ago, President Bush and his Republican allies pushed a risky plan to privatize and cut Social Security,” she said. “If they had succeeded, seniors would have lost trillions more in the financial crisis. At the time, Democrats and the American people said ‘no.’ And no one lost a penny in Social Security, even as America’s households lost more than $17 trillion in wealth.”
Maybe the President didn't really mean what he said and the checks are going to go out regardless, because the money is coming out of the Social Security Trust Fund.
I think we are still watching Debt Limit Kubuki.
Hat tip to the Instapundit.
Regards — Cliff