Obama May Nix Soc. Sec. Checks

Via Memeorandum, from CBS News, an interview between President Obama and news anchor Scott Pelley, Obama says Social Security checks may not go out on August third. He also said that Veteran’s checks and Disability checks would be affected as well. Here’s Obama’s exact words;

“I cannot guarantee that those checks go out on August 3rd if we haven’t resolved this issue. Because there may simply not be the money in the coffers to do it,” Mr. Obama said in an interview with CBS Evening News anchor Scott Pelley, according to excerpts released by CBS News.

And;

Mr. Obama told Pelley “this is not just a matter of Social Security checks. These are veterans checks, these are folks on disability and their checks. There are about 70 million checks that go out.”

The interview will air Tuesday evening on the CBS Evening News with Scott Pelley.

Mr. Obama’s comments followed remarks from the Senate’s top Republican, who said Tuesday that he did not see a way for Republicans and Democrats to come to agreement on meaningful deficit reduction as long as Mr. Obama remains in office.

Senate majority leader Mitch McConnell stated that as long as Obama remained in office, there was no way for Republicans and Democrats to come together on deficit reduction and taxes. Here’s how Senator McConnell described Obama’s choices on the debt ceiling debacle;

“The president has presented us with three choices: smoke and mirrors, tax hikes, or default. Republicans choose none of the above. I had hoped to do good, but I refuse to do harm. So Republicans will choose a path that actually reflects the will of the people, which is to do the responsible thing and ensure that the government doesn’t default on its obligations,” he said. ( emphasis mine)

Well, to us out here in “fly-over country”, it sounds like more of the same, more of the same and more of the same. Let’s hope Republicans in both Houses keep their resolve and stand firm.

Update; Stacy McCain has the video at TOM

After posting this story, I went out to my shop to finish a couple of cabinets for my Wife. I had just started brushing on the stain when it occurred to me that Obama made no mention of the other entitlement programs. I guess those payments are sacrosanct and can’t be touched. Well, at least he isn’t trying to use our troops as hostages again.

Update II; Via Instapundit, an article by Kurt Brouwer where he explains that the government won’t default  on the interest of the national debt, or it’s payments to Seniors, Vets and Disabled persons. Interestingly enough, the other entitlement programs would face cuts in funding.

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.

Q: What is a default?

A: In this case, a default would be the failure by the U.S. Treasury to make payments of principal or interest on its debt in a timely manner.

Q: In a given month how much does the Treasury owe as interest on its debt?

A: Roughly about $15–20 billion (more on this in a moment).

Q: How much revenue does the Treasury take in on average in a month?

A: Roughly about $200 billion.

Q: Are you saying the Treasury could pay interest on its debt 10 times over (or more) from monthly income?

A: Yes.  Therefore the likelihood of not paying interest on its debt is zero.

Q: But, what about redeeming bonds that come due?

A: As bonds come due, the Treasury would again use monthly income to pay them off. This would lower the debt owed beneath the so-called debt ceiling.  Then, the Treasury could turn around and issue debt in that amount up to the debt ceiling.

Q: Why then do Treasury Secretary Geithner and others in government make such apocalyptic statement about the horrors of default.

A: I’m afraid Secretary Geithner and others in government are doing the moral equivalent of yelling “Fire!” in a crowded theater and they are doing so for political reasons rather than financial reasons.  They simply do not want any interruptions in the bloated spending underway in Washington and they want to scare Americans into thinking the end of the world is nigh unless the gravy train keeps chugging along.

Math is hard for politicians

William Teach says; “The Man is shameless.”

10 thoughts on “Obama May Nix Soc. Sec. Checks

  1. Obama fear mongering. If they don’t go out it will be because he chooses not to have them go out to further his anti American agenda. Hope people don’t fall for it. Yes, I’m on SS and my son also.
    Bob A.

  2. Of course he’s going to throw the Vets and Senior’s under the bus to prove his point. I’d like to see a Republican do an ad showing Michelle and family on their summer vacation in Africa, eating, enjoying life and then have his voice over threatening to take away the social security checks and vet checks.

    Typical of the Dems, they say they are so concerned about seniors and medicare and all that, and then they use them to make their baseless threats. Despicable asswipes, the lot of them!

    • I know Bob, Obama is trying to use seniors and vets, but I think that they/we have seen through the Obama mask of deceit.

      Nunly, You were too kind calling them asswipes. 😉

      Liberty, I’m thinking that Soc.Sec. and payments to Vets, disabled and our troops come first, as well as the interest payment on the debt. Then the other entitlement programs and budgets for the different agencies get cut where needed…or not.

      Thanks for y’all’s comments. Mike G.

  3. Pingback: Obama Declares Moral Bankruptcy: ‘No Social Security Checks Next Month!’ : The Other McCain

  4. Pingback: Obama Tries Blackmail / Cheap Suit McConnell Starts To Fold « The Camp Of The Saints

  5. what an a$$! yeah that’s the best he can think of taking money from not only vets, disabled vets and our seniors. but lets keep the money train going for food stamps and unemployment. I know someone that only has only two kids and recieves over $1,000 a mn in food stamps, remind you that you can used food stamps at gas stations to get pizza and other crap. I have a family of five, and only spend between $400-500mn on groceries, I cannot figure out whey they need so much money for a small family. So yeah lets not cut those down a little bit. My husband is a disabled vet and recieves checks, without those checks we would default on a few bills, I guess that is just what people will have to do, I hope he realizes what he’s gonna cause people to default on, Credit cards, mortgages, medical bills, cuz that is what seniors and disabled vets pay with their checks. What a good president….gotta love him, always thinking about others. what a moron.

  6. Thanks for your comment Kat.

    A buddy of mine was telling me just today about a guy who came into his convenience store this weekend and bought about a hundred bucks worth of junk food, twinkies, chips and softdrinks, and he paid for it with one of those EBT(Eat Better Today) cards and supposedly still had over four hundred bucks left on it for the month. Pisses me off to see someone who is able to work and doesn’t even try. Hell, I’d pick shit with the chickens if it paid.

    Mike G.

  7. At this point all I want to know is…….who is going to get paid? If someone is going to be paid, when and how much? If not, are we going to go thru this every month? And, is somebody going to tell all the creditors of those who get nothing, or get half their pay or whatever, that they can’t touch us…….cause we have no control over getting paid or not…….Or, if we are amoung the unlucky………should we just start packing, load the car/truck and drive by the bank and drop off the keys right now……and not prolong agony……and, get on with trying to find a way to exist………? Well, maybe there’ll be enough money in the Treasury so that the Pres Can order Mr. G to buy everybody a hunk of cardboard to hold up on the off ramps of the interstates……..asking/begging for a buck so we can eat. He’ll do that at least, after all he’s the “Advocate for the poor “Working Stiff’s and folks”……..surely he wouldn’t throw us under the bus without saying “Here’s your sign”……..who he? Got an answer? Can anybody tell me when they are going to tell us if we are going to get paid, what to do if we don’t and, when and if we will ever get paid again, and if so how much????????? Anybody have a clue……….my guess is not………cause, while he’s good infront of the Camera’s, he/they the Dem’s and many Repubs as well…….really don’t have anything in writing…….well, unless you can see it from the 35k level………

  8. Hey Who, I’m just a common working stiff like everyone else. My wife will be one of those not receiving her SS check next month if Obama decides to use seniors as hostages to get his way. The only advantage we have over other folks is that we saw the writing on the wall a few years ago and worked to get everything paid off. No mortgage, no car or truck payments, just the usual monthlies everyone has, phone, power, insurance, ect.

    Thanks for your comment and appreciate your visit to my little acre of the internet.

    Mike G.

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