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SOCIAL SECURITY - SIMPLE QUESTION TO STIMULATE DISCUSSION

11
MinisterO3/11/2011 4:49:16 pm PST

re: #10 mikiesmoky2

It is possible that it is you who is confused.
On any July 1 (beginning of fiscal year), the SS fund has a “balance” that is composed of cash and treasuries, mostly treasuries, since cash doesn’t earn anything.
During the fiscal year, July 1, X through June 30, X+1, there are receipts (this will be discussed) and there are expenditures (this will be discussed). If the receipts exceed the expenditures, there will be a surplus (positive cash flow) for that FY. If the expenditures exceed the receipts, there will be a deficit (negative cash flow). The balance at June 30, X+1 will equal the July 1, X balance plus the cash flow or deficit.
I hope that this elucidates “cash (cash + treasuries) balance” and “cash flow”.

The federal budget does NOT include SS. SS is a separate fund.

Social Security outlays exceed revenues. That is by definition a deficit. This is included in the $1.65T federal deficit, as it must be.

The federal budget does indeed include Social Security. Whoever is telling you otherwise is not doing you any favors.

Don’t take my word for any of this - read it yourself:

gpoaccess.gov