Obama: Social Security Checks Will Stop When Debt Ceiling is Reached

[LongTomH]

From the Huffington Post: http://www.huffingtonpost.com/2013/10/03/social-security-debt-ceiling_n_4037870.html

WASHINGTON -- President Barack Obama said Thursday that while it's bad members of Congress have allowed a government shutdown, it would be worse if they failed to increase the government's borrowing authority later this month.

...........//snip

"In a government shutdown, Social Security checks still go out on time," Obama said. "In an economic shutdown, if we don't raise the debt ceiling, they don't go out on time."

..........//snip

The president's remarks followed a Treasury Department report detailing catastrophic consequences for Congress failing to allow the government to continue borrowing money to cover expenses. Not raising the so-called "debt ceiling" by Oct. 17 could trigger "a financial crisis and recession that could echo the events of 2008 or worse," the report said.

..........//snip

Republicans in Congress have said they plan to use the debt ceiling as leverage to force Democrats to agree to spending cuts, but Obama has said he'll refuse to negotiate. His comment Thursday is part of an effort to increase pressure on Republicans to get them to give up their demands.

Apparently, the blackmail will go on, with the GOP demanding major cuts, including to Social Security and Medicare, before they allow the US to pay its bills. They're willing to cause a worldwide recession that would be worse than 2008, just to get their agenda enacted.

[newfie11]

1. So one way or another the repugs stop SS

What assholes!

[Downwinder]

2. BS. The debt for my Social Security has already

been incurred, now they are paying that debt off. Stopping payments is a default. That will be time for involuntary bankruptcy.

[dixiegrrrrl]

5. You are 100% correct

and point to a distinction few people seem to get.

In fact, the 14th Amendment requires all Treasury payments and interest be paid before any other bills,
should there be insufficient funds to cover it all.

Soc Sec is a debt back by Treasury notes.
to refuse to pay Treasury backed debts ahead of any other obligation is unconstitutional...
but our new Treasury Sec. Lew said he will not prioritize payments of Treasury instruments and interest should there be no increase in the debt ceiling.
THAT is illegal, but guess following the Constitution is no big deal anymore.

[Downwinder]

16. Add a bit to it.

Legislation mandates that the Soc. Sec. Trust fund be invested in Treasury Notes. Therefore if any funds are deposited in the Trust fund, the debt must be increased by a like amount unless an equal amount is withdrawn from the Treasury.

dixiegrrrrl, you can word this better than I. Feel free to correct me.

[dixiegrrrrl]

17. I can add another perspective to what you so clearly just stated...

Since Treasury "notes" ( I like to think of them as IOUs) plus interest make up the Soc. Sec. funds,
and since interest rates have been kept artificially low
the fund has deliberately been strangled for these many years.

Meanwhile we have been distracted by all the talk about chained CPI and other catfood commission topics, re: future of Soc. Sec.
so little attention has been paid to the back door thefts going on in the funds,
both current robbery ( all past and ongoing Soc. Sec. taxes have been spent by the gov.)
and
the loss of earnings of the funds.

[Downwinder]

20. They say that Soc. Sec. is running the debt up. And they are right.

But, it is not the ones receiving it, it is the ones paying in.

[MO_Dem]

3. Oh, boy!

The teabaggers are gonna lose support BIG TIME when folks find out that their SS payments will stop if the debt limit isn't raised.

[ruffburr]

4. That will-

Help the economy! (NOT) So I actually thought these people were just mis-guided, Now I'm thinking that the agenda of the 1% is to have these Republican minions destroy the middle class and all safety nets let the people they see as burdens on society die off ( Hell its not their grandma ) Then institute corprate slavery system so you can owe your soul to the company store/landlord /doctor (then there really will be death panels) just think 20 hr days of basicly free labor toopay your tithe (sick assholes)

[Buns_of_Fire]

6. All in all, I don't think that would be a good idea for the teabaggers in Congress.

(How's that for understatement?) There are, of course, many reasons -- including some that would probably earn me a visit from Agent Mike ( Hi, Mike! How's the wife and kids? ) -- so I'll just leave it at "I don't think that would be a good idea for the teabaggers in Congress."

[dixiegrrrrl]

7. Soc. Sec. checks go out via direct deposit on Wednesdays.

Which Wed. depends on your last name? I think..or maybe your number.

So, the first 3 Wed. of Oct should be ok.

[RebelOne]

8. Yes, mine arrives on the 3rd Thursday of every month.

Hopefully, that will not be the last check for a while. Plus I would be uninsured if the checks are delayed after that, since I am on Medicare.

[Raven]

10. Good point! I had not thought of that. My Medicare

payment is deducted from my SS check. That is a very scary situation since most folks on SS are older and more likely to get sick.

[dixiegrrrrl]

12. Not so sure you would be uninsured.

They take the Medicare out of the check, so it is not part of any delayed mailing, I think.
It automatically goes into whatever computer is set up under Medicare.

[Buns_of_Fire]

9. I've been told it's some sort of arcane formula...

that takes into account all of the above, and tosses in a "balancing" algorithm so that payments are pretty evenly spread throughout the month.

Either way, 1/4 of the recipients would wind up being hosed in October, and everybody would be hosed from November on.

That said, I don't really think that'll happen. But with the crowd in Congress these days, you can never really tell.

[RebelOne]

22. I have direct deposit and my check is due on Oct. 16.

I am keeping my fingers crossed that it will be there.

[Downwinder]

24. Mine was due on the 4th, deposited on the 3rd.

[alfie]

11. He said "...they don't go out on time."

Is that what everyone is taking to mean they won't go out at all? btw, which Wednesday you receive your SS check depends on what day of the month you were born. I was born on the 22nd...my check comes 4th Wednesday. Sister born on 14th...her's comes on trhe 3rd Wednesday.

[RebelOne]

21. I was born on the 18th and mine comes on the 3rd Wednesday.

That is really dumb. Why not just send checks to everyone on the 1st of the month?

[AnotherDreamWeaver]

13. My deposit should arrive the 16th.

Hope things are worked out by then. Maybe the terrorist traitors will be removed from office...

[Faryn Balyncd]

14. To NOT use the Trust Fund to pay SS obligations is THEFT.

...which is exactly what Republicans have been desiring.

Is this kabuki theater, designed to crank up anxiety over the timely issuance of SS checks in order to build political pressure for a "compromise" including chained CPI and Medicare cuts?

[leftyladyfrommo]

15. If they stop SS Washington DC will get burned to the ground.

I can't even begin to imagine the outrage if they dare to do that.

[RebelOne]

23. Yes, count on me to be one of the burnees. n/t

[ellenrr]

19. food stamps are still there. so far.