The National Debt and the Collapse of the US dollar

[rockytopva]

National debt surpasses $38 trillion milestone for first time in US history as spending surges

America’s debt has grown rapidly over the last decade as the population ages and enrollment in Social Security and Medicare rises.

nypost.com

 

[Aryeh Jay]

Hmmm, my dollars are still working and being accepted for goods and services.

 

[Nithavela]

I don't think debt really matters when you have that big of a military.

 

[Lost Witness]

Very unlikely that social security and medical coverage has caused our debt to hit what it is..

 

[Richard T]

Quote from the article, " America’s debt has grown rapidly over the last decade as the population ages and enrollment in Social Security and Medicare rises."
Because Medicare and Social security still have a surplus, the debt does not rise at all, though the payments are rising.
The government always has taken money from the social security trust fund and gives the trust funds IOU's for the surplus. Currently the payments of social security are requiring more of those surplus IOU's to be cashed. So accounting wise, the IOU amount is reduced, while the borrowing from the public pays off the IOU's. This is merely substituting one debt for another and the debt amount stays the same.

 

[bèlla]

Very unlikely that social security and medical coverage has caused our debt to hit what it is..

All of boomers haven’t qualified for social security yet. The last year associated with the group is 1964 which would make the youngest members 61. The full retirement age for someone born then is 67 and they become eligible for medicare at 65.

According to their calculations the surplus will be exhausted in 2033 which is 8 years from now. Consider their statement in light of the above. The last boomers enter the pool in 2031. They’ve already admitted they’ll have to reduce benefits 24% across the board if the problem isn’t resolved. Which means a 48% decrease for a couple.

How many seniors can afford that? Bear in mind, the people born later may not have a pension unless they kept the same job. 401k’s have been around for a while and most companies switched to save money.

Which might mean mom and dad are moving in or you’re going to them.

~bella