And it is expertly outlined by IBD’s Jed Graham at the Capital Hill blog:
But the Congressional Budget Office forecast released a day later shows that the coming crisis has drawn one year closer — to 2017.
Finally, a Wall Street conspiracy theory without Goldman Sachs at its heart. This one posits that bond rater Moody’s wants to ding the U.S. credit rating so panicky politicos will privatize Social Security. That would sent big bucks to the firm’s big bank clients. If only it were true.
Over at Hot Air, Ed Morrissey has gotten hold of an internal CBO report distributed to Congress that predicts Social Security will start running a cash deficit next year as opposed to 2019. And even that, apparently , is based on some pretty rosy revenue projections. Indeed, over the span of 2017, 2018, 2019, SS will run a $126 billion deficit, according to the CBO. Gee, and you wonder why the Chinese are getting skittish about the dollar?
Whatever the politics, fixing Social Security is easy conceptually. And if Team Obama is starting to get a bit anxious about an adverse reaction from the bond market to its fiscal policies, why not offer a fix as evidence of its seriousness about America’s entitlement woes? Here is Ed Yardeni on this very topic: