to cover those deficits, social security will have to dip into its $2.6 trillion trust fund. heritage foundation analyst david john says that trust fund is made up of special treasury bonds which will be redeemed with other federal borrowing. >> they have the full faith and credit of the united states government, so they will be paid. but that's money that has to come out of general revenues that would otherwise go to something like schools or roads or defense or something along that line. yes it will be paid, but there will be a cost in other areas. >> reporter: the most immediate financial challenge for social security is disability insurance. that program covers ten million people and has a separate trust fund that will run out of money in 2018. if congress doesn't act, that would force deep cuts in benefits. darren gersh, "nightly business report," washington, d.c. >> tom: oil giant exxon mobil is shutting and emptying some of its oil pipelines in louisiana on increased concerns about the mississippi river flooding. it comes as the army corps of engineers decides sometime

around the same time in 2036 social security's trust fund will run out of all the -- quote -- "i.o.u.'s the government issued to it. after this point social security will be able to pay just over 75% of the current benefits. madam president, that's an important point because some say that social security doesn't need to be reformed because these benefits are still going to be able to be paid. and i think we have to remind ourselves of how this would work. you can see the demographic trend here, what's happening in the country. going back to the 1950's when you had a life expectancy that was shorter, you had more people paying in -- 16.5 for every one that was drawing out. now we're looking at three people paying in for every one drawing out. of course the life expectancy now is up to about 78 years average. in 20 40rbgs as i said earlier -- in 2040, two people paying in for every one drawing out. the crunch succombing. we can predict it. the expectation is because the social security trust fund will be able to pay benefits until some time in the 2037 time frame, that everything's okay

so it's certainly true that the projections of when social security trust fund and a medicare trust fund are going to run out of money has been exacerbated by the recent recession there's no doubt about that however the long term ok for medicare in particular and social security with some significant lesser extent has nothing to do nothing important to do with a recession there's nothing of any quantitative significance to do with the bush tax cuts it's because it was a completely unsustainable program because given the rate at which health care costs go up when everybody has their health care paid for and therefore there's no effective cost control that is three four percent faster than any economy has ever grown for a sustained period so that's just impossible no matter how low it started it's eventually going to be the whole economy and that has very very little to do with tax cuts and with the cumulative wealth by the wealthy or with anything that happened in the two thousand and eight recession there is a fundamental problem yes it's maybe a few years earlier because the recession b

this would be on top of the three trillion dollars the government's already taken from the social security trust so what is it that is so important we have to keep it going by theft well for you and being faced with starvation you might get mugged by sandwich for obama the money is being spent on sending deputy secretary of the treasury millon to visit kuala lumpur to highlight u.s. support for malaysia's goal of raising growth in incomes through comprehensive economic reforms like we couldn't use some of that support here at home sending obama's pre-authorized to moneygall a town with an extremely ironic name made for just this moment in history get it money call where obama's great great great grandfather was from i'm sure this has something to do with fixing the economy and probably more to do with obama showing his white roots as he gears up for reelection in front replacing military helicopters in iraq with private contractor helicopters that cost twice as much but translate into more campaign contributions and even direct military spending. i mean pakistan where it looks like we are slowly

it has been democrats who have rated the social security trust fund.ciate the fact that there are concerns about the yielding sovereignty. i am not aware of a push to move us toward that that is making any headway. host: i want to go back to your proposal. i want to ask you about what you are proposing. does yours include proposing the budget except for in times of war? is that the part of your proposal? guest: it does contain that exception. host: that idea was rejected on the grounds that it would likely force a tax increase -- guest: first of all, that article needs to take into account this specific proposal, the one that is backed by the republicans in the senate. that one does contain restrictions regarding spending as a percentage of gdp, limited to 18%. it would require a two-thirds supermajority vote in order to raise taxes. the author of that peace should examine this proposal. this is not your mother's balanced budget amendment proposal. host: when you were having these discussions about what to propose, what was the conversation like about

considerably more detail. >> in the back. >> could you explain the distinction between social security ing in deficit and the trust funds being exhausted? is it slightly deceptive to talk about social security running a deficit currently considering it takes in less than it pays out until 2036? >> [inaudible]. can you hear me? good. i'm glad you asked that question. actually in last year's press conference stressed the importance of the media unrstanding the term exhaustion which means something different to the actuaries than it does to the average person and that what exhaustion in 2036 this year means that we'll have money to pay a little more than 3/4 of benefits with no other legislative changes. now that's not good. we need to have the congress step up and make changes so that that's not the outcome but that's radically different from, it is totally bankrupt, there's nothing there at all and, is a constant irritation for me picking up the news clips and seeing how often the media reports that exhaustion figure as if there would be no money left in the trust fund. so bless you for asking that question. in ter

social security most of their adult lives. it is something they are entitled to draw down on in their entitlement years. there is also fiction about the social security trust fund. i think a lot of people mistakenly think they are paying into it through the payroll tax, the money is going into a vault and being kept there, and when they finally retire, they can draw down on the accounts and sustain themselves, but the reality is that those tax revenues flow through this also security trust fund and its flow right into the fund and are on a daily basis to keep the government going, to keep running government programs. with the federal government a vaultbehind iou's in somewhere in west virginia i am told. with the understanding that when the time comes the government will cover bustles with security costs. but what people are worried about long-term is whether the government is corn to be able to cover all of those costs, especially as more and more people are retiring. host: as they discuss the debt ceiling today in washington, there is this headline. what are the accounting moves that can happen between today and the next couple of months to keep things g

trust fund in pact h and i. is - but s and i social security is positive. if you look at the long term, we are talking about an order of magnitude greater, but the picture is very similar that using a trust fund calculation tends to confuse the picture substantially. we need -- i would argue that we need to pay close attention to the budget. it's helpful to have the trust fund report because it gives a somewhat different perspective. but in the end, what really matters is the flow of funds and the expectation of the flow of funds over the next few years. again, without this artifice of a separate trust fund that doesn't really help finance and. so here we are, this is all in the context of the fiscal crisis that the country is going through. ryckman schenker interest on the bonds and that made me think well the bond market right now is probably in unsettled states. i don't know whether we are going to reach the limit in terms of the debt limit. the latest prediction is that sometime in early august according to the treasury department we will have gotten to

from what i understand, there's no law that keeps the government from going to the social security trust fund and using that money like they have over the years. they have used something like $4 trillion out of our social security trust fund. it needs to be put back. nobody ever talks about putting the money back into the trust fund that has been borrowed from us. innings to go back on the trust fund and there would be no problem with -- it needs to go back into the trust fund and there would be no problem with social security. just go after all this fraudulent claims. that will make up any money they need in medicare. host: this is "the washington post" this morning. "bair plans to leave her post." also this morning, the front page of "the wall street journal" this morning has the story. host: also, some of you might be interested in this headline this morning. "the pakistani leader sides with military." "the price minister defended the country's military -- the prime minister defended the country's military." we have that at c-span.org. you can watch the speech. let's go to dayton, ohi

social security. the program's trustees reported today that the medicare hospital insurance fund will be exhausted in 2024. that's five years earlier than last year's projection. the social security trust fund will be depleted in 2036, one year earlier than the previous estimate. treasury secretary timothy geithner said it underscores the urgent need to act soon. >> we should not wait for the trust funds to be exhausted to make the reforms necessary to protect our current and future retirees. larger, more difficult adjustments will be necessary if we delay reform. and by making reforms soon, that are faced in over time, we will help reduce uncertainty about future benefits. >> sreenivasan: in the case of medicare, the recession has meant fewer people working and paying payroll taxes into the trust fund. a double suicide bombing in pakistan killed at least 66 police recruits today and wounded 120 others. taliban militants said it was revenge for the killing of osama bin laden. we have a report, narrated by lindsey hilsum of independent television news. >> reporter: "vengeance is ours," say the taliban. two suicide bombs exploded this morning at a paramilitary training center in northwes

social security. any delay that they built into this always affects every penny that i get. i don't remember that there was much of a delay when they raided the social security trust fund in the 1980's. i think they still owe social security recipients about $1 trillion. thank you. host: thank you. bill tweets -- and about joe biden of leading the group in the white house -- next call, cape cod, good morning, rick, independent. caller: i am 52. the new cut off is going to be 54. government's responsibility for my retirement. the other aspect i wanted to bring up was the increasing cost to businesses are already being directly felt at the grocery stores and everything that we purchase. i frankly cannot afford for this government to continue to spend the money the way it is. the entitlements need to be changed. there are so many people on it that don't need to be. they just don't want to work. i know i am going to get a lot of trouble for that, but it's true. i work all my life and i will continue to work. nobody is responsible for my retirement but me. host: thanks for the call. back to this article, suggesting that there's room for compromise on delays about the e

social security most of their adult lives. it is something they are entitled to draw down on in their entitlement years. there is also fiction about the social security trust fund. i think a lot of people mistakenly think they are paying into it through the payroll tax, the money is going into a vault and being kept there, and when they finally retire, they can draw down on the accounts and sustain themselves, but the reality is that those tax revenues flow through this also security trust fund and its flow right into the fund and are on a daily basis to keep the government going, to keep running government programs. with the federal government a vaultbehind iou's in somewhere in west virginia i am told. with the understanding that when the time comes the government will cover bustles with security costs. but what people are worried about long-term is whether the government is corn to be able to cover all of those costs, especially as more and more people are retiring. host: as they discuss the debt ceiling today in washington, there is this headline. what are the accounting moves that can happen between today and the next couple of months to keep things g

social security tax money is. we should have had a law that said social security tax monies had to go into the social security trust fund. it never happened. there has never been one dime of real money in the social security trust fund and should have happened and i think it's irresponsible that we never made that happen. as far as taking away your social security and medicare, that is a scare tactic that one party sometimes uses against the other. but i know the republicans are in the majority in the house and we are absolutely committed that if anybody, anyone over 55 will not have their medicare changed, will not have their social security changed. so you don't have to worry about it. and i hope to see you soon in texas, but don't worry about it. please don't lose any more sleep over it. we're in control in the house and we made it very clear, we aren't going to let that happen and especially to someone who is 80 and 83 like you and your husband. as a former judge, it was called the doctrine of promissories top ell. when promises are made and someone acts in reliance on those promises to their detriment, the ori

considerably more detail. >> in the back. >> could you explain the distinction between social security being in deficit and the trust funds being exhausted? is it slightly deptive to talk about social security running a deficit currently considering it takes in less than it pays out until 2036? >> [inaudible]. can you hear me? good. i'm glad you asked that question. actually in last year's press conference stressed the importance of the media understanding the term exhaustion which means something different to the actuaries than it does to the average person and that what exhaustion in 2036 this year means that we'll have money to pay a little more than 3/4 of benefits with no other legislative changes. now that's not good. we need to have the congress step up and make changes so that that's not the outcome but that's radically different from, it is totally bankrupt, there's nothing there at all and, is a constant irritation for me picking up the news clips and seeing how often the media reports that exhaustion figure as if there would be no money left in the trust fund. so bless you for asking that question. in ter

considerably more detail. >> in the back. >> could you explain the distinction between social security being in deficit and the trust funds being exhausted? is it slightly deceptive to talk about social security running a deficit currently considering it takes in less than it pays out until 2036? >> [inaudible]. can you hear me? good. i'm glad you asked that question. actually in last year's press conference stressed the importance of the media understanding the term exhaustion which means something different to the actuaries than it does to the average person and that what exhaustion in 2036 this year means that we'll have money to pay a little more than 3/4 of benefits with no other legislative changes. now that's not good. we need to have the congress step up and make changes so that that's not the outcome but that's radically different from, it is totally bankrupt, there's nothing there at all and, is a constant irritation for me picking up the news clips and seeing how often the media reports that exhaustion figure as if there would be no money left in the trust fund. so bless you for asking that question. in t

considerably more detail. >> in the back. >> could you explain the distinction between social security being in deficit and the trustexhausted? is it slightly deceptive to talk about social security running a deficit currently considering it takes in less than it pays out until 2036? >> [inaudible]. can you hear me? good. i'm glad you asked that question. actually in last year's press conference stressed the importance of the media understanding the term exhaustion which means something different to the actuaries than it does to the average person and that what exhaustion in 2036 this year means that we'll have money to pay a little more than 3/4 of benefits with no other legislative changes. now that's not good. we need to have the congress step up and make changes so that that's not the outcome but that's radically different from, it is totally bankrupt, there's nothing there at all and, is a constant irritation for me picking up the news clips and seeing how often the media reports that exhaustion figure as if there would be no money left in the trust fund. so bless you for asking that question. in terms of the c

considerably more detail. >> in the back. >> could you explain the distinction between social security being in deficit and the trusteing exhausted? is it slightly deceptive to talk about social security running a deficit currently considering it takes in less than it pays out until 2036? >> [inaudible]. can you hear me? good. i'm ad you aed that question. actually in last year's press conference stressed the importance of the media understanding the term exhaustion which means something different tohe actuaries than it does to the average person and that what exhaustion in 2036 this year means that we'll have money to pay aittle more than 3/4 of benefits with no other legislative changes. now that's not good. we need thave the congress step up and make changes so that that's not the outcome but that's radically different from, it is totally bankrupt, there's nothing there at all and, is a constant irritation for me pickg up the news clips and seeing how often the media reports that exhaustion figure as if there would be no money left in the trust fund. so bless you for asking that question. in terms of the cash flo

d the social security trust fund will be insolvent and 2036 andde the nation's debt has increased from 5 trillion to 14 trillion. despite the gravity of theo situation the majority has to chosen to debate the bill toil d increase taxes oil and gas, an industry that employs 170,000 americans. the past year 11,000 new jobs,- 1.9 trillion in taxes have beenn generating 1.9 trillion in taxes generated by the industry since 1981.eid-mene the menendez bill would not have decreased prices of the pump but would have shipped more jobs overseas and resulted theil and whenever you tax something you a get less of it.it's jus that you drive up the cost. it's just that simple.t g so we are all aware that gas prices have doubled in the president's first two years in office and raising taxes on in energy companies, operating in america would do nothing to hela that situation. the real solution is for america to enact legislation thation. increases domestic american energy production. from a variety of sources natural gas, nuclear, we need to do more of nuclear. hydroelectric, biofuels and other source

they say social security trust fund will be exhausted by 2036.ndex has shown they paid more for gas and food pushing inflation to its highest level in two and half years. that's why markets are dragged down. in 12 months prices have risen 3.2%. so far this month they have fallen from $114 a barrel the economists say gas and food prices should retreat later this year. tattle text thing could be coming to a bart a train near you. they're looking at it to report bad behavior malfunctions on their trains. messages would go to call center were dispatchers respond to the issue, the president who is leading the push for the textile systems sees this ideas be more convenient than the current system of reporting problems to a train operator. san francisco's muni is coming under fire for overtime cost. the agency will break the budget by $18 million this year appear 55% cost overrun. supervisors say the agency's overtime expenses are out of control appeared in a says there is no choice but to pay overtime given the number of operators. the sharks anyone wh

social security trust fund will be insolvent in 2036 and in theased past decade our nation's deaths have increased from 5 trillion gravity to 14 trillion. despite the gravity of our majority has chosen to debate the bill to increase taxes on oil and gas an industry that employs 170,000 americans in my state and added this past year at 11000 new jobs.axes - the 1.9 trillion has been generated. een 1.9 billion in taxes have been generated by the indus three since 1981. the menendez bill would not have decreased prices at the pump but would have shipped more jobss overseas and really resulted in the importation of more oil and it. gas. ever whenever you tax something come you get less of it.hatever, y whenever you tax the refining process or whatever from a java the cost. it's just that simple. so we are all aware that gas prices have doubled in the a president's first years in office and raising taxes on ica energy companies operating in america would do nothing to help that situation. e the real solution is for america to enact legislation that increases american energyf production from a

and by the way, there's billions of dollars that undocumented aliens have left in the social security trustd, which probably they will never see. so, in a way, people say, well, they're taking away over here, but they're also putting into the system money that they will never see. my father was born in mexico. my mother was born in the united states. my father became a legal resident and then a naturalized citizen. he followed the legal process to get into the a legal process where people follow a process legally to get into the united states instead of coming in the wrong way. host: congressman henry cuellar is our guest, representing texas' 28th district. on homeland security, he serves as the ranking member on the border and maritime subcommittee and a member of the counterterrorism and intelligence subcommittee. we're talking homeland and border security this morning. there's a story in "the washington post" today, legislators call obama's actions on libya illegal. says, is president obama breaking the law in libya? both the white house and congressional leaders appear eager to avoid th

. >> chris: brit, we also had a report on friday from the trustees for the social security and medicare trust that both of those trust funds are running out of money faster than had been believed. partly because of the recession. partly because we obviously have the baby boomers starting to take, to need the services. and that the trust fund for the main trust fund for medicare will run out five years sooner. what does do it to this? >> i think it makes it encouraging, then, to hear senator durbin say we have to get in entitlement and reform the entitlement programs. i think that is going to have to come out of this at some point. and i think this adds new urgency to that. i might add another point to this. senator kyl, when they start talk about taxes and revenues and saying we don't have a revenue problem, that's wrong. we do have a revenue problem. but the reason for is it that the economy is growing so sluggishly. a blooming economy produces a gusher of tax receipts with tax rates remaining as low as they are now or no higher. the problem with trying to raise revenue by raising tax rates

social security. here's eric schurenberg, editorial director at cbsmoneywatch.com. >> judging from my inbox, most americans believe the following about social security. in 1983, congress rewrote the law to build a huge trust fund to tide the system over through the baby boom's retirement. but congress raided the fund, and now the system will go bankrupt. well, not really. first, there was never a plan to lay money aside for the boomers. the prospect never comes up in the '83 reform. remember, at that time, social security was on the brink of not being able to mail out checks, and the oldest boomer was under 40. lawmakers worried about the next decade, not about creating a piggy bank for the 21st century. the trust fund is a trillion- dollar unforeseen consequence. did congress raid the trust fund? well, raiding is a loaded word. by law, the trust fund has to be invested in treasury bonds, and treasuries are issued to raise money for uncle sam. yes, the government spent it. it was supposed to. finally, social security is not going bankrupt. as long as voters are willing to tax workers to pay benefits to retirees, social security will survive. the real risk to you is that the support will stop, but we're a

privatized medicare hey there's a there's a lot of money to be made there social security two point six trillion dollars trust fund lots and that off to our to the banks there is on wall street's two and a half trillion dollars in our military we you know we have as many private soldiers now in iraq and afghanistan as we have public and they cost us a whole lot more but somebody is making some money our parks our museums or zoos or libraries or playgrounds or sidewalks our courts our postal service our beaches even our allied sions have been privatized with these electronic voting machines that are owned by private corporations and now our vote is being honored in private it's insane and it's time for us to take our nation and our commons back. it's time for our daily poll your chance to tell us what you think here's the day's question new poll shows majorities in ohio disapprove of governor john k. six anti-union laws will ohio voters repeal and recall your choices are yes republican governors screw the working class out of their jobs and then the governor's jobs are endangered too or no it's hard to fight b

your point about social security and medicare -- we do have sort of a trust fund for social security we have a surplus of money. we are taking more in than we are spending out. i believe that social security we're at the point where we are taking in about the same amount of money we're spending out, may be starting to spend a little bit more. the projection is that trust fund will get drained down over the coming decades. i think in about 20 or 30 years, it will be out of money. medicare is projected to run out of money sooner, i think in the middle of the next decade. so the problem is, at the population ages, more people start drawing on those benefits. at the population ages, more people start drawing on those benefits. costs go up. they're looking at the state workers and saying they have these really cushy retirement systems, i do not have that in the retirement -- in the private sector. here at the federal level they are starting to take a look at that as a way to save money. that is part of the deal, is what federal and state employees are saying, that we have been expecting t

social security and medicare. >> it's not socialism. >> right. but there isn't, chris. the trust this over the last couple of elections, people have a patchwork electoral approach, philosophy. independents go for democrats by 18 points in 2006. they go for republicans by 19 points in 2010. not that much changed in those four years. >> what do they mean when they say socialism -- >> they are picking up on the buzzwords i would say. >> one person's weed is another person's flower. >> speaking of weed, did you hear that the republican party last night is the dope party? what do you make of that? >> it's heroin. >> legalize heroin, horse? >> libertarians just don't care what general public thinks of them. they are not going to get elected president. they can go into debates and be terrific. they can be strong. they can be decisive. because they don't care. if you're tim pawlenty, poor tim pawlenty who wants to be president, you've got to be careful. >> and we argue about steroids. you go to jail if you use them, and he's legalizing heroin. he and the other guide, former governor of n

an additional urgency, given the fact that medicare and the social security trusties' provided their estimate of how soon the main health trustd will go in. given that, doesn't the administration need to be a bit more explicit about coming up with ways that will actually 100% guaranteed save money as opposed to delivering a promise that is unmeasurable of this point? >> it has to be delivered. it is hard to be secure about the estimates of what can happen if we improve care. they are doing their job as they need to do. i am confident about the ability to reduce costs. and i have seen it happen. when a hospital is able to reduce some infections to 0%, which some hospitals have been done for five years running. it is an infection you get from catheters. those are extremely expensive, tens of thousands of dollars when someone gets one of those dangerous infections. when that in fishing goes away, that is a tiny example. and we have those examples. and hospitals are showing a return on investment. i have seen a seven to one in a hospital when a patient care gets better. when the infection does not occur. a payment does not always

. >>> and medicare and social security are running out of money even faster than expected. a new report finds that medicare's trust fund will be drained in 2024, five years earlier than last year's estimate. social security will be exhausted in 2036, one year ahead of the previous projection. >>> and finally, talking about driving while distracted. an italian bus driver has been suspended, after being caught driving using two cell phones. and steering his vehicle with his elbows. it's illegal to use one phone while driving in italy. obviously, illegal to use two. you may be wondering, too, about the passenger who recorded this video. dan and, bianna, instead of getting off the bus. >> i would have gotten off the bus. >> did they fire that guy? >> i don't know. he's been suspended. we'll keep you posted, dan. this is the news. >> maybe he got an e-mail about the study you're about to bring to us and talking to other people on the street. >> maybe. >>> we want to check on weather. and for that, we go to jackie meretsky. >> good morning, everyone. let's talk about severe weather. we could have some storms from the mi

social security and medicare. in fact, a government report out today says social security will run out of money in 2036, a year earlier than had been estimated. and medicare? its trust fund will be empty by 2024, five years ahead of the last estimate. one republican proposal would change medicare for future generations to a voucher system. in an interview today with harry smith, house speaker john boehner tried to reassure worried seniors. >> the retirees are going to be taken care of. there's no ifs, ands or buts about that. but we all know that if nothing has changed, seniors' benefits will get cut. why? because they're unaffordable. that's why we have to deal with this and we need to deal with it now. >> couric: and you can see more of that interview with speaker boehner this sunday on "face the nation." still ahead here on the "cbs evening news," earning extra credit-- what some california schools are doing to avoid the budget ax. but up next, one of the world's top artists is behind bars in china's latest crackdown on dissent. hey, pete. yeah, it's me, big brother. put the remote down and listen. [ male announcer ] this intervention brought to you by niaspan. s

for example, when harry reid says we are ok with social security, we have a trust fund until 2037.and americans know that there is no money in the trust fund. right now, we are starting to pay out more money than we are starting to take in. and there are 10,000 baby boomers who retire every day. in the 1950's there were 16 workers for every retiree. now there are fewer than three. you cannot go on with a system like that. making the point that we should not change the system -- we have to. ."st: in "the hill guest: i am not ready to take medicare off the table. you have to perform it. anything resembling the current safety net needs to be changed. for those nearing retirement, they have saved for a system that is in place. it would not make sense to pull the rug out from under them. for those in the future, it has to change. for medicare, yes, we should block grant it. states can do better if they do not have to deal with stipulations and requirements set by the federal government. in arizona, we have state issues. the state legislature dealt with them admirably. in 2014, unless we

. >>> the trust company of the two trust earlier than expected. social securitysufficient resources through 2036. medicare's hospital insurance program likely through 2024. after that, the programs will only be able to pay a portion of the benefits promised retirees. and luckily, a 38-foot sailboat only suffered cosmetic damage after a chance encounter with a whale off oregon. the coast guard says the whale breached the surface of the water and then crushed the rigging and mass as it fell back into the water. the boat was participating in a race at the time of the strike. no one was injured, wolf. the crew was in the cockpit at the time. it was a 30-foot long whale. >> at least no one was injured. >> no. >>> new information from evidence on the bin laden raid and how the navy s.e.a.l.s captured the mission on camera. >>> and hundreds of libyans escape by boat. now we uncover some of the dangers that they face. [ male announcer ] to the seekers of things which are one of a kind. the authentic, the rare, the hard to define. to those always searching for what's pure

are 10,000 new people signing up for social security and medicare every single day. 10,000 more every single day. and as a result, the money in the so-called trust fund doesn't exist. and it has to come out of current revenues. that's why everything needs to be on the table. we've put forward our plan. our plan said that no one 55 or older would have any changes to their current plan. but for those 54 and younger, i think it's time to make changes to those plans or they won't exist. remember, the greatest threat to our country and to our economy is doing nothing. >> smith: isn't that a way to say we're not really serious about it, because the fact is the biggest part of the population, the baby boomers are just coming into the plan now. you're saying, "don't worry 55 and over, you're fine." well, guess what? a lot of... even more revenue than we can possibly comprehend is going to get chewed up in this thing just in the text ten years. >> that was our proposal. it was our budget that we moved through the house. but we haven't seen the plan from the president. we haven't seen a plan from the senate democrats. it's time for them to put a plan on t

social security. and so in this debate on medicare, it's not just the medicare trust fund that we're talking about that will go bankrupt -- it will, because today and every day with no time out for holiday or weekends, 10,000 of our baby boomers retire and they stop paying into these funds and they start drawing from these funds and so as we debate the subject we need to remember that it's bigger than medicare. . even if you argue that medicare will somehow be solvent, it won't matter if the country has gone bankrupt, because it doesn't matter what you do if there's no government because it's gone bankrupt and that's where we're headed. it's a huge problem. we worked very hard to keep the promise made during the campaign of cutting $100 billion from spending this year. that's a lot of money to cut. but even if we cut $100 billion, that would have been 1/16th of the deficit. it turned out to be an amazing disappearing $100 billion. shrunk to $61 billion. then it is troung $38 billion. then when c.b.o. looked at the actual outlays this year, how much we would save, it slunk to $352 million. that's, mr. s

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