President Obama warned today that if the debt ceiling is not raised, Social Security checks will be delayed. We will probably be at the debt ceiling by February 15, 2013. The first payment after that date is February 20 but it's not clear that payments would go out on February 13, the last payment date before the 15th, since that money may be needed for debt servicing due on February 15. The bond holders have to come before Social Security recipients because the 14th Amendment provides that the public debt cannot be questioned.
Scare tactic; there is sufficient revenue to service the debt and pay Social Security benefits.
ReplyDeleteOh and Social Security benefits do not come from the main Federal budget, as they are self funding, Treasury bonds though do draw from the Federal budget, Repugs don't want to pay for debt that is owed and that is Questioning the debt and that is not allowed under the 14th Amendment to the US Constitution, as it says that "debt shall not be questioned", so the debt ceiling is unconstitutional.
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ReplyDeleteThis sky is falling stuff is getting old.
ReplyDeleteFrom the Congressional Record, March 16, 2006
ReplyDeleteMr. (Senator) OBAMA. Mr. President, I rise today to talk about America’s debt problem. The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.
Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘‘the buck stops here.’’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.
I therefore intend to oppose the effort to increase America’s debt limit.
http://www.market-ticker.org/akcs-www?post=216087
When we speak of first paying off our indebtedness (and I assume that means debt held by the public , not intragovernmental debt), whatever happened to the principal? All I hear about is how low interest rates are, and how interest due is so low compared to GDP.
ReplyDeleteIn order to have interest due, there must be a corresponding principal due, right?
Don Levit
Social Security is a dedicated revenue and expense stream unaffected by bond holders of US securities.
ReplyDeleteIf the Treasury has not built a reserve of cash, it is negligence.
If the govt says that it does not have bodies to push the button to send checks, it is a matter of priority.