Obama will bankrupt and starve American Seniors unless he gets his way

[Soggy in NOLA]

BTW.. borrowed money isn't revenue.

 

[Soggy in NOLA]

That is not a lie. In fact, most Republicans want to get rid of SS and privatize it for their banking buddies.


Not for our banking buddies,after all I don't have any banking buddies,but for my own personal satisfaction,that I alone control my destiny,not the jack fucks we see in DC now.

We are watching a monumental screw up from both sides and have been.Why would anyone in their right mind trust them with YOUR money??

Any quotes or links to support that claim??

Of course not, it's left wing nattering that hasn't any foundation in reality.

 

[Annie]

First, the treasury has to pay the interest on the trust fund bonds. Second, the principal is there to be drawn on if necessary.

But that's not what Obama just said.

You should pay closer attention to current events

There's not enough revenue coming in to pay the bills. The difference has to be borrowed. Borrowing is done to pay the bills. Social security checks are bills. When the debt ceiling is reached, the borrowing has to stop. Once borrowing is stopped, there isn't enough revenue to pay the bills.

The U.S. Treasury will not default - Fundmastery Blog - MarketWatch

* July 12, 2011, 2:52 PM ET

The U.S. Treasury will not default

Despite all the rhetoric and posturing we see in the media and in Washington D.C., it is safe to say categorically that the U.S. Treasury will not default on its debt after August 2nd, even if the debt ceiling is not raised. Not only will the Treasury be able to pay interest on U.S. debt obligations, but there is money for other essential programs as well. However, there will be some serious cutting that has to happen because spending clearly exceeds revenues.

I believe a debt ceiling limit extension will be enacted. However, let’s consider what might happen if the debt ceiling limit is not raised. Here in a Q&A format is what I believe you need to know at a basic level...

...Math is hard for politicians

Now, let’s do the math to flesh out some of these points. I know that for many politicians and pundits math is hard, but I’ll try to make it as simple as possible. If we do not raise the debt ceiling by August 2nd, we will not default on Treasury obligations. Nor, will we have trouble making Social Security payments. However, there would be a big drop — roughly 44% — in government spending because that percentage represents the difference between government revenues which would be about $200 billion for the full month of August and $172 billion for August if we start counting after the first week when the deadline hits. Spending is slated to be over $300 billion that month.

Here are the numbers from an excellent and highly detailed study by the Bipartisan Policy Center (BPC) quoted in this piece [emphasis added]:

…The BPC study found that the United States is likely to hit the debt limit sometime between August 2 and August 9. “It’s a 44 percent overnight cut in federal spending” if Congress hits the debt limit, [BPC's Jay] Powell said. The BPC study projects there will be $172 billion in federal revenues in August and $307 billion in authorized expenditures. That means there’s enough money to pay for, say, interest on the debt ($29 billion), Social Security ($49.2 billion), Medicare and Medicaid ($50 billion), active duty troop pay ($2.9 billion), veterans affairs programs ($2.9 billion).

That leaves you with about $39 billion to fund (or not fund) the following:

Defense vendors ($31.7 billion)

IRS refunds ($3.9 billion)

Food stamps and welfare ($9.3 billion)

Unemployment insurance benefits ($12.8 billion)

Department of Education ($20.2 billion)

Housing and Urban Development ($6.7 billion)

Other spending, such as Departments of Justice, Labor, Commerce, EPA, HHS ($73.6 billion)

The decision to prioritize payments would fall on the Treasury department, and Powell points out it would be chaotic picking and choosing who gets paid (in full or partially) and who doesn’t…

No doubt picking and choosing who gets paid and who doesn’t would be chaotic. And, lots of programs would not get their funding and that would lead to plenty of screaming. Nonetheless, it should be clear from this exactly how much we are spending in excess of government revenues. And, that could and should lead to a sober assessment of what government can and cannot do...

James Pethokoukis | Analysis & Opinion | Reuters.com

The issue isn’t default but government shutdown
Jul 12, 2011
James Pethokoukis
Politics and policy from inside Washington

Here’s a great chart from Goldman Sachs that shows how government revenues and obligations will likely match up in August:

As is clearly shown, there is enough cumulative money coming to pay interest, SS, Medicare and defense. Not that there wouldn’t be cash managements issues. That and several other issues are addressed in a Q&A from a GS report last week. Some excerpts (bold is mine):

Q: What happens on August 3 if the debt limit is not increased?

A: … Using August 2010 spending and receipts as a proxy, the Treasury will probably take in $5-$10 bn in revenue on August 3, leaving insufficient revenues to make Social Security payments partly unfunded even if all other spending is deferred. Since the Treasury has carried a minimum cash balance of about $20 bn since 2009, and currently carries a balance of $74 bn, Social Security payments might still be made by drawing down the Treasury’s cash balance.

Q: Are Treasury interest payments at risk?

A: We do not think so. … There are two basic reasons that interest payments should not be called into question: First, if the August 2 deadline is missed, it is very difficult to see the debate dragging to August 15, when interest payments are made, since we doubt there will much congressional appetite for a protracted lapse in borrowing authority. … Second, the Treasury is likely to prioritize payments. While the sharp fiscal contraction that would result from prioritization would have negative short-term economic consequences and would be difficult to implement, it nevertheless seems likely if necessary.

Q: If other non-interest payments are missed, would that constitute a default?

A: Probably not, at least from the rating agency perspective. The rating agencies have not been entirely clear on this point, but S&P, Moody’s, and Fitch all appear to view a failure to pay other obligations to be different from a default. S&P has already put the US on negative outlook due to longer-term fiscal issues, and the other two rating agencies have indicated they will move to a negative outlook if no agreement is reached by August 2.

U.S. Debt Ceiling Increase Remains Unpopular With Americans

U.S. Debt Ceiling Increase Remains Unpopular With Americans
More are concerned about higher level of spending than risk of economic crisis
by Lydia Saad

PRINCETON, NJ -- Despite agreement among leaders of both sides of the political aisle in Washington that raising the U.S. debt ceiling is necessary, more Americans want their member of Congress to vote against such a bill than for it, 42% vs. 22%, while one-third are unsure. This 20-percentage-point edge in opposition to raising the debt ceiling in Gallup's July 7-10 poll is slightly less than the 28-point lead (47% vs. 19%) seen in May.

...

Bottom Line

Despite intense lobbying of Congress by President Obama, Treasury Secretary Timothy Geithner, and others in the administration about the economic urgency for raising the nation's debt limit, fewer than one in four Americans favor the general idea of raising it. Also, Americans are significantly more concerned about the budgetary risk of giving the government a new license to spend than they are about the potential economic consequences that would result from not raising the debt limit. Both of these findings put Americans more on congressional Republicans' side of the debate than Obama's -- at least in terms of political leverage as the two sides negotiate a deal. Nevertheless, Americans place Obama and the Republicans in Congress at parity in their preferences for whom they trust more to handle the federal budget deficit and debt ceiling, similar to the close division in U.S. partisanship, more generally.

As can be seen from the 'bottom line', Obama risks all the good will of the people on this, they don't want to go against him, but are now trending to this very thing.

 

[signelect]

notice that he said nothing about his paycheck and congress hasn't mentioned taking a hit. I am on SS and that money is mine it was STOLEN by congress and spent on their pet project. They should all be in jail for theft. Obama is the biggest loser we have ever had and we have TM on the board who just can't or won't get it. The gov't has to stop passing laws that do not apply to them. I am sick of this guy. Why does his voter block think he is great, he has done a thing to help them contrary to what he promised.

 

[signelect]

SS is NOT a bill, it is money that was taken away from us under threat of law and belongs to those who have paid into the fund that congress stole. This has been going on for a long time and we, the voters, ignored it. Has anybody heard anything about congress taking a hit, I sure haven't. Take a look at the states that won him the election, they are all in the toilet and quite frankly they deserve it. Bush wasn't anywhere near great but compared to Barry is was positively wonderful.

 

[CrusaderFrank]

SS is NOT a bill, it is money that was taken away from us under threat of law and belongs to those who have paid into the fund that congress stole. This has been going on for a long time and we, the voters, ignored it. Has anybody heard anything about congress taking a hit, I sure haven't. Take a look at the states that won him the election, they are all in the toilet and quite frankly they deserve it. Bush wasn't anywhere near great but compared to Barry is was positively wonderful.

Thank Obama for finally admitting to what many of us have been warning about for ages: SocSec is a Ponzi Scheme

 

[Soggy in NOLA]

I'd happily opt out of SS.. only an idiot wouldn't.

 

[SuMar]

Obama says he cannot guarantee Social Security checks will go out on August 3

Way to go, Barry. Way to go! Criminally irresponsible talk from the Failed Leader who thinks bank ATM's are hurting the economy and thinks blowing a Trillion dollar on not so shovel ready projects is funny.

Obama= Epic Fail

Obama says he cannot guarantee Social Security checks will go out on August 3 - Political Hotsheet - CBS News

So much for "no ultimatums"....

Discovery News - "No Ultimatums," Except from Obama​

 

[Toro]

How much of SS is deposited by electronic deposit?

 

[hortysir]

How much of SS is deposited by electronic deposit?

I think their entire check is

 

[oreo]

And the Republicans will be to blame. We can all play this stupid game. Voters will decide who they actually blame.

Most Republicans will understand it was Obama that did it, not Republicans but here is what's important... Slowly millions of non Republicans meaning the independents and Democrats will hear it was Obama's choice too...

So let me break this down for you...

Obama won't gain any support from Reps but maybe Independents at first but over time will lose a good % of his own base and independents. Do you see the danger of being one of the world’s biggest liars? It WILL catch up to Obama before the election and cost him vastly more than it gained him.

Nah, poor scenaro. The retards will be blamed for everything. End of da story.........

40% of the Tea Party in this country consists of independents and democrats. The debt--is the NUMBER one issue with this group. And for good reason. We are currently 14.3 trillion in red ink with another 64 trillion in unfunded liabilities--due to baby-boomers entering social security--medicare.

So NOPE--I really don't believe that Obama can hold out for that long--without a major backlash. He is using the typical social security scare--but Americans are becoming more and more informed as to what is actually going on in this country--and that is the "scary" part.

Obama has continually BLAMED everyone else--BUT himself--and that is wearing very thin now-a-days. House Republicans need to get a GRIP--put a bill forward--with cuts to the budget to at least match this 2.7 trillion Obama is asking for--and then LET HIM veto this bill--sending this crisis into a tail spin. Slam DUNK that ball right back into his court.

 

[Toro]

How much of SS is deposited by electronic deposit?

I think their entire check is

So nobody receives checks?

 

[Trajan]

How much of SS is deposited by electronic deposit?

I think their entire check is

So nobody receives checks?

a congressman asked the Social Security chief actuary what was up wht the checks hand how exactly it works;

here;

‪Social Security Actuary Confirms: Withholding Checks Would be a Political Decision - July 13, 2011‬‏ - YouTube

somemore of that crazy gov accounting you explained, notice the guy says when they SS redeem bonds that lowers the debt subject to the ceiling BUT, when tres. issues the bond or money to the public it increases the debt. subject to ceiling..

ok toro for bonus rep. WHY do they not EVEN out. I think I know why per your explanation, but...please....go ahead.

 

[Toddsterpatriot]

I think their entire check is

So nobody receives checks?

a congressman asked the Social Security chief actuary what was up wht the checks hand how exactly it works;

here;

‪Social Security Actuary Confirms: Withholding Checks Would be a Political Decision - July 13, 2011‬‏ - YouTube

somemore of that crazy gov accounting you explained, notice the guy says when they SS redeem bonds that lowers the debt subject to the ceiling BUT, when tres. issues the bond or money to the public it increases the debt. subject to ceiling..

ok toro for bonus rep. WHY do they not EVEN out. I think I know why per your explanation, but...please....go ahead.

Well, if Soc Sec redeems a bond and Treasury has cash sitting around, that lowers total debt.
Of course when the Treasury is broke, they have to issue a new bond to the public to get the cash to redeem the Soc Sec bond, in which case it does balance out.

 

[percysunshine]

Obama will bankrupt and starve American Seniors unless he gets his way

I guess that would make Obamacare affordable.

 

[BolshevikHunter]

Only a dumb fucking madman like Obama would suggest that an increase in revenue is the solution to fixing the debt. That would be like if you could no longer afford the monthly payements on your credit card, The credit card company suggesting they raise your credit limit.

LMAO! Obama just wants more time to run America into Bankruptcy. He's an out of control, Red china manchurian canidate, banker controlled puppet nutcase. He's finished in November. So are the mentally ill Democrats in D.C. Nothing but a bunch of carpetbagging, Lame ducks. Obama is by far the worst President to ever occupy the Oval office. ~BH

ALERT ALERT ALERT!!!! Bolshie is frothing again. Wow! A Righty Extremist Frothing Fascist!! Wow!!! Thank you, Bolshie, for that incredible demonstration of invective. You might truly be a candidate for the asshole of the year award, but that display was magnificent.

Wow! Is that suppose to be a suprise from you? Coming form Jake the fucking dumb shit? Wow, I am knocked off my feet. Coming from one of the biggest jokes here on USMB, we should really all be that suprised by your response? It's like saying that the neighbor's dog took a crap on the lawn again this morning. = Wow bro!

~BH

 

[BolshevikHunter]

Only a dumb fucking madman like Obama would suggest that an increase in revenue is the solution to fixing the debt. That would be like if you could no longer afford the monthly payements on your credit card, The credit card company suggesting they raise your credit limit.

LMAO! Obama just wants more time to run America into Bankruptcy. He's an out of control, Red china manchurian canidate, banker controlled puppet nutcase. He's finished in November. So are the mentally ill Democrats in D.C. Nothing but a bunch of carpetbagging, Lame ducks. Obama is by far the worst President to ever occupy the Oval office. ~BH

Only a dumb fucking madman like Obama would suggest that an increase in revenue is the solution to fixing the debt.

Personally, I can't think of a better solution than increasing revenue to fix debt.

That's because you're a suicidal mental case. Of course you would see it no other way. You're the same type of dumbshit who would run yourself and your own family broke because in the back of your stupid brain you know that you can always claim bankruptcy just like anyother bum could. Bow down slave, you're a joke. ~BH

 

[BolshevikHunter]

Only a dumb fucking madman like Obama would suggest that an increase in revenue is the solution to fixing the debt. That would be like if you could no longer afford the monthly payements on your credit card, The credit card company suggesting they raise your credit limit.

LMAO! Obama just wants more time to run America into Bankruptcy. He's an out of control, Red china manchurian canidate, banker controlled puppet nutcase. He's finished in November. So are the mentally ill Democrats in D.C. Nothing but a bunch of carpetbagging, Lame ducks. Obama is by far the worst President to ever occupy the Oval office. ~BH

Only a dumb fucking madman like Obama would suggest that an increase in revenue is the solution to fixing the debt.

Personally, I can't think of a better solution than increasing revenue to fix debt.

It never works, though.
They just spend even more

Just like he spends more in his real life. What a role model. ~BH

 

[Annie]

Personally, I can't think of a better solution than increasing revenue to fix debt.

It never works, though.
They just spend even more

Just like he spends more in his real life. What a role model. ~BH

In fairness, seems he always lived at or below his means, until the taxpayers actually provided room, board, and transportation-then all limits were off.

 

[hellofromwarsaw]

#218-Thanks- keep scaring rational people...you're the best.