Every problem the US faces today pales in comparison to its debt problem. From Tyler Durden at zerohedge.com:
Ever now and then we get a vivid reminder that America’s biggest threat are not a handful of Facebook ads bought by the KGB, nor Iran’s already brittle regime, nor Venezuela’s hyperinflating basket case of an economy, but over $100 trillion in unfunded future liabilities. Today was one such day, because that’s when the board of trustees for Social Security and Medicare reported that Medicare’s hospital insurance fund – also known as Medicare Part A – will be depleted in 2026, while Social Security program costs would exceed total income in 2020, for the first time since 1982.
Additionally, and in line with previous forecasts, the report also projected that Social Security funds could be fully depleted by 2035, leading to a devastating hit on expected payouts to retirees and other beneficiaries (read none), unless a comprehensive overhaul of the entire program is implemented in the coming years.
As a reminder, the Medicare trust fund comprises two separate funds: The hospital insurance trust fund is financed mainly through payroll taxes on earnings and income taxes on Social Security benefits. The Supplemental Medical Insurance trust fund is financed by general tax revenue and the premiums enrollees pay.