US Social Security Reform - All You Need To Know

Money In: "Social Security reform: A guide "

"Social Security has been taking in more money than it has had to pay out since the 1980s. It will continue to do so through 2017. But the surplus isn't cash that's locked away. Rather, it is loaned to the U.S. Treasury, which puts it in the general revenue pool. As such, it is spent on anything the government deems fit."

"In exchange, Social Security receives special Treasury bonds, backed by the full faith and credit of the U.S. government. At the start of 2004, those Treasurys were worth $1.5 trillion and paid more than $80 billion in interest annually."

"Come 2018, when its revenue will be less than its costs, Social Security is expected to tap its Treasurys to pay benefits in full through 2042."

Money Out: Paying back the $1.5T 'surplus'

"For two decades, the Social Security system has been creating a "surplus," and that reserve is widely thought to be available to make up for shortfalls projected to begin in 2018, when more money has been promised to beneficiaries than will be taken in through payroll taxes."

"But that surplus isn't a pile of cash waiting to be used. In fact, the money -- $1.5 trillion plus interest to date -- has already been spent."

Flat Broke:

The US government has spent your pension fund and it knows it isn't going to be able to pay it back, period. If it could there would be no problem with the current system until at least 2043. It can't, so it's going to reform the system, reward Wall Street with billions of easy dollars, and leave pensioners out of pocket and probably much worse. Thrown to the wolves would be closer to the truth.