No, this isn’t a blind item about a bank. It’s an item about perennial whipping-boy Social Security, which apparently just had to ask Mom and Dad for a few bucks to get through the holidays:
The House on Wednesday passed legislation giving the federal government the ability to borrow a whopping $290 billion to finance its operations for just six additional weeks. The measure is needed as a result of the out-of-control budget deficit, which registered $1.4 trillion for the budget year that ended in September. The current debt ceiling is $12.1 trillion and is set to be reached by Dec. 31.
Republicans, who helped supply votes to increase the debt ceiling just last year, unanimously opposed the legislation, which is required to issue new debt to pay for federal operations and deposit up to $50 billion into the Social Security trust funds.
Waitaminnit… I thought Social Security was supposed to be good for another 20 years, give or take? Not, you know, be on the precipice of flames six weeks from now.
For those who love Saxo Bank’s “Outrageous Predictions”, Social Security’s untimely death has come in on their list for 2010:
The US Social Security fund will finally tip over, technically going bust. “Ever since the good years of the 1960s politicians have been taking the money and spending it instead of setting it aside for the fund, but next year it will go into deficit for the first time as US demography turns.
“The fund is going to need a bail-out, financed by higher taxes, more borrowing, or more printing.”
Saxo is also predicting gold at $870, the VIX will settle around 14 as the markets become range-bound and lazy, the loller-dollar will have a snapback rally v. the yen (yes please, I’d like to go to Japan next year) and that we’ll all be hiding our money in Bunds, so there you go, if you’re looking for a forecast of the chaos next year.
(h/t Erik Skiles)