Executive Branch
Social Security Checks Could Be Delayed Without Debt-Ceiling Deal
Published July 13, 2011
President Obama's stark warning that Social Security payments may not go out next month is a choice the administration has to make, but entitlement benefits could be withheld if the cash flow dries up over an impasse in Washington on raising the debt ceiling.
Obama issued the warning on Tuesday when he said Social Security payments and veterans' checks, among other payments, could be at risk if negotiators don't reach a deal to raise the debt limit above $14.3 trillion by Aug. 2. That's when the Treasury Department says the government will stop being able to borrow money.
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"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," Obama said in an interview with CBS News.
The warning rippled through Washington, though some continued to question whether the administration was over-hyping the consequences of creeping too close to the cut-off date for borrowing.
Meanwhile, seniors are left wondering whether they'll get their promised retirement benefits.
Washington is obligated to pay Social Security benefits, but a Congressional Research Service report last month revealed that the Treasury Department can delay them if necessary.
"Social Security benefit payments may be delayed or jeopardized if the Treasury does not have enough cash on hand to pay benefits," reads the report, which notes that the Treasury occasionally needs to issue debt to pay benefits, and a failure to raise the ceiling could make that impossible.
A Government Accountability Office report several decades ago also said it is "generally recognized" that, in the event of a national default, the government would be precluded from honoring some obligations -- including Social Security benefits, employee wages and other payments.
So far, the government is not at that point, and leaders in both parties are not showing the stomach for testing the fallout from failing to raise the debt ceiling. But the sides are conflicted about how much to increase the borrowing limit -- with Republicans insisting the government stop spending an equal amount as it borrows, and Democrats calling for tax hikes to pay for the additional loans.
On Tuesday, Senate Republican Leader Mitch McConnell offered a Plan B, which could allow for an increase by Aug. 2 even if there's no deal to cut spending.
Some lawmakers claim the administration could limp along at least for a short period by prioritizing payments, and in turn avoid default.
"I don't know what to believe," Boehner told Fox News in an interview after the latest White House meeting with congressional leaders Tuesday.
"The Treasury secretary is going to have options in terms of who should be paid and who shouldn't," he said. "Yes, there are some debts that have to be rolled over. But there's going to be money available on August 3, and I think it's way too early to be making some types of veiled threats like that."
Washington has found ways to protect Social Security payments in the past. The Treasury Department in 1996 announced it did not have enough money to pay Social Security benefits for the month of March because it could not issue new debt. However, Congress passed a law allowing the department to temporarily issue securities in an amount equal to those payments, in such a way that would not count against the debt ceiling in the short-term.
The benefits were paid and Congress subsequently raised the debt ceiling from $4.9 trillion to $5.5 trillion. At the same time, Congress also locked off Social Security and Medicare funds from the purposes of "debt management," according to the CRS report -- though the move still doesn't protect the payments if Treasury does not have the money to pay them.
Republican presidential candidate Newt Gingrich told Fox News that Republicans "should call President Obama's bluff."
"House Republicans ought to go in tomorrow or the next day, pass a $100 billion cut in spending and a $100 dollar increase in the debt ceiling so it is exactly balanced. That takes us all the way through to September. They should call that 'the Social Security payment guarantee bill.'
"Then they should say to the president. Here we've taken care of August. All you have to do is get Harry Reid and the Senate Democrats to pass it. You sign it. We can guarantee every senior citizen their Social Security check," Gingrich said.
Read more: http://www.foxnews.com/politics/2011/07/13/report-backs-obama-warning-that-social-security-checks-at-risk-in-debt-crisis/#ixzz1S0V2nr8B
If the SS checks aren't going to go out, then no one in Congress...Or the Prez...Should get paid that month, too. Fair is fair.
I love it. I have been calling this POS POTUS the Lawn Jockey since he was shoved down our throats by white guilt,political socialist correctness,and a minority vote, just because the Lawn Jockey is 1/2 "black". Now there is a parallel to the OJ trial.
Mr Newt is right, leave the decision with Obummer. Let him own it along with the horrible economy.
He not only wants war,he declaired war on the American capitalist from the git go. I am in a manufactoring business that has a paint shop. The EPA is now worse than the state or city. Bigger business won't expand because they don't know what the Lawn Jockey is going to do to regulate them out of business next. Out of country is the only option for some. Not to mention the health care boondoggle. God I am glad I am getting out, instead of starting a business.
Humphrey Products Inc. is for sale partly because of government intervention . Partly because I am way tired of the "human sewer " of Wichita .
Quote from: Catwoman on July 13, 2011, 11:53:03 AM
If the SS checks aren't going to go out, then no one in Congress...Or the Prez...Should get paid that month, too. Fair is fair.
I think they should forfeit every dime they will make during their term. THey have failed! PERIOD. Its their fault that this situation is here.
Obama is going to hold those checks HOSTAGE until he can get the Congress to do what HE wants! And if you disagree with him, you are a racist! That is how he operates! Personally, I couldn't give a rat's patooie that he's black. It's just too bad he sucks at being President!
Lisa
I agree with you, Lisa.
Quote from: farmgal67357 on July 13, 2011, 03:53:59 PM
Obama is going to hold those checks HOSTAGE until he can get the Congress to do what HE wants! And if you disagree with him, you are a racist! That is how he operates! Personally, I couldn't give a rat's patooie that he's black. It's just too bad he sucks at being President!
Lisa
Black hasn't got a thing to do with it. A LAWN JOCKEY has purpose. It is useful. It fulfills its duties reliably. It is decorative and its worth about 100 bucks.
QuoteA LAWN JOCKEY has purpose. It is useful. It fulfills its duties reliably. It is decorative and its worth about 100 buck
substitute the word lawn jockey with prostitute, and you may be right! ;D
Quote from: srkruzich on July 13, 2011, 07:25:45 PM
Black hasn't got a thing to do with it. A LAWN JOCKEY has purpose. It is useful. It fulfills its duties reliably. It is decorative and its worth about 100 bucks.
Okay Steve, I feel really dumb. What exactly is a lawn jockey? I'm almost 48 years old and I feel I should know this! What has my mind forgotten now? ???
Lisa
Quote from: farmgal67357 on July 13, 2011, 11:52:11 PM
Okay Steve, I feel really dumb. What exactly is a lawn jockey? I'm almost 48 years old and I feel I should know this! What has my mind forgotten now? ???
Lisa
Here ya go Lisa :)
(http://jollyobama.com/img/lawn5.jpg)
Lisa, a lawn jocky is a figure of a jocky in front of a home that you tie a horse to when you are visiting.
I don't see them much any more..........altho if I am not mistaken they are still a few in the deep south.
In the west they use a fence post or a tree to tie up to.
They still manufacture them and their sales are quite high despite the protests.
Quote from: srkruzich on July 14, 2011, 05:47:51 AM
Here ya go Lisa :)
(http://jollyobama.com/img/lawn5.jpg)
WHOA!! Okay, now Ready's post is REALLY FUNNY!!!! :laugh: In Parsons we have some "hitchin' posts" in front of some of the older homes, but they are usually made out of some sort of stone.
Lisa
Yes, most I saw were stone painted to look like the jockey
There may be some in Amish country......look around when you all are traveling.
stay cool.
Quote from: farmgal67357 on July 14, 2011, 08:45:27 AM
WHOA!! Okay, now Ready's post is REALLY FUNNY!!!! :laugh: In Parsons we have some "hitchin' posts" in front of some of the older homes, but they are usually made out of some sort of stone.
Lisa
IF ya noticed its painted to look like obama.
Old "Jocko" has even more history than that.The originals were cast iron I believe, and go way back. I remember seeing many of them showing up at house auctions here in the late 40's and early 50's. Mom loved antiques and took her with me to many sales.I learned to bid at an early age. ( my first win was a bunch of seashells and a seahorse for .25. I was eight. )
Those hitching posts had been also used as signals for the underground railroad. Depending on the paint or ribbons or rope knots that were tied on an arm, it could signal safety or danger. Much later they were made as yard lanterns as well as hitching posts.The oldest ones are very expensive now and most have been snatched up by collectors.
that is what the legend says. Not sure if it is verified. They also say that jocko was a boy that joined up with washington when he crossed ito deleware and that washington would't let him go with him. So he had jocko hold the horses and when he got back found that jocko had frozen to death carrying on his duty. Then washington had a statue commissioned for his property and thats how the jocko Lawn jockie came about.
Today someone could just look at that and say, "Well, that's just Racist!" It's neat to know the actual history behind something. I've seen these statues before, but didn't know what they were called! Now I know it's just brave, little Jocko..... :)
Lisa
I didn't know about the Washington part. I'll have to do some research on that. Very interesting.
Quote from: farmgal67357 on July 14, 2011, 03:58:42 PM
Today someone could just look at that and say, "Well, that's just Racist!" It's neat to know the actual history behind something. I've seen these statues before, but didn't know what they were called! Now I know it's just brave, little Jocko..... :)
Lisa
LOL yeah thats why they are rare now. Few years ago, Jesse Jacksons Rainbow group went around stealing lawn jockies off peoples property and destroying them. Folks think it was him cause he started a stink about them. You know him.....