Social Security Is Going Cash Flow Negative Six Years Earlier Than Expected

Pay attention, this is BIG.

The Trustees of Social Security Fund, in their annual report, have implied that the trust fund will turn cash flow negative around the year 2017. This doesn't mean they will be bankrupt and out of assets in 2017, just that they will start to pay out more in benefits than money they take in.

Well, scratch that 2017 date. The fund is now cash flow negative.

Here's how Bruce Krasting puts it: The Social Security Trust Fund is able to make accurate estimates on the major components of its monthly cash flows. Therefore the first quarter operating results for the Fund are in. Only the payroll taxes and benefits paid numbers are currently available for January, February and March of 2010. The raw numbers show clear acceleration of the deterioration in the Funds dynamics...The conclusions are not good... (more)