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SOCIAL SECURITY: Debt no reason to stop checks

Letter by Charles L. Allyn, Tacoma on July 18, 2011 at 9:48 am with 20 Comments »
July 18, 2011 12:29 pm

Re: Debt limit negotiations

The June 2011 Monthly Treasury Report is now available and shows that Social Security receipts are still greater than outlays. In June there was a $52 billion excess, and for the fiscal year (nine months) there was a $99 billion excess.

So there is no logical reason why Social Security checks should stop, in fact there is still a surplus that will be borrowed and used to keep some other area operating.
Of course, the Treasury would have to be careful to not spend the Social Security receipts coming in for some other purpose before it was time to send us our checks.

Leave a comment Comments → 20
  1. aislander says:

    Charles Allyn writes: “Of course, the Treasury would have to be careful to not spend the Social Security receipts coming in for some other purpose before it was time to send us our checks.”

    Too late: it already did. Have fun spending that IOU from Treasury when the government defaults…

  2. Roncella says:

    President Obama is using scare tactics in order to frighten the Seniors on Social Security. He knows they will become alarmed and call their senators and representitives to ask them to vote for what ever Obama wants.

    President Obama and his handlers are handling the Press beautifully. They together have made the Republicans/Conservatives look guiltiy of not caring about the Seniors and their well being including their Social Security Checks.

    Remember President Obama is in full re-election mode. Everything and anything Obama says and does is related to his being re-elected in 2012, Everything !!

    Remember Obama’s motto is ” Never let a good crises go to waste, Never”.

  3. Islander,
    Weren’t you saying last week that there would be no default, that there was ample money to pay federal expenses, and that not paying SS was just another political lie?

    Roncella,
    “Never let a good crisis go to waste” was said by Rahm Emanuel, And I can find no references to Obama ever using that line.

  4. Everything and anything Obama says and does is related to his being re-elected in 2012, Everything !!

    And – as pointed out by Mitch McConnell – everything and anything the Republicans do is related to preventing Obama from being re-elected in 2012

  5. aislander says:

    I wasn’t talking about the immediate crisis, xring. Unless we cut spending, it won’t matter if we raise the debt ceiling this time: we WILL default. I say raising the ceiling will only dig us in deeper, but it is ALSO true that we can service the debt for now without raising the ceiling. But to do that, drastic cuts will be necessary, and we can’t start that process too soon if we are to save America…

  6. LarryFine says:

    it’s simple… Obama is willing to hold our seniors hostage… politics over people (old people especially). Disgusting ;)

  7. Roncella says:

    xring, Emanuel was Obama’s closest advisors part of the Chicago click that Obama has kept around himself since becoming President.

    If you don’t think that Obama did not hear Emanuel say Never let a good crises go to waste, your naive……

  8. Islander,
    Flip-flop go read your posts.

    L_F,
    The rights are holding 98% of Americans hostage to protect tax loopholes for the top 2%.

    Roncella,
    Flip-flop go read you posts.

    You specifically said it was Obama’s motto, now it’s well he heard RE use it

  9. aislander says:

    No flip-flop. I am merely saying that, unless spending is cut WAY back, we will default, no matter what we do with the debt ceiling now. At some point the rating agencies will downgrade our credit worthiness, interest rates will skyrocket, and if we hold true to form, we will create a huge amount of fiat money to try to stave off disaster (just like Wiemar) and our money will be worthless. When that happens, default will be inevitable. But we have a chance–right now–to start turning the ship.

    In the context of the current debate, there is revenue to service the debt without raising the debt ceiling, and cutting government enough to do that would be a good start to averting the calamity I described in the first paragraph.

    So, no flip-flop…

  10. commoncents says:

    aislander has a point in saying that we will eventually default no matter what the debt limit is. By raising the debt limit we are simply increasing the amount of interest that we will have to pay in comparison to our GDP. However, we can’t simply cut our way out of this mess. Unfortunately we are going to have to both cut spending AND raise taxes. We have to put a significant dent in the debt…

    unfortunately for us….cutting spending to the degree that may be needed will only further negatively impact the economy. Are we back to seeing our older folks selling apples on the street corners?

  11. “The June 2011 Monthly Treasury Report is now available and shows that Social Security receipts are still greater than outlays. In June there was a $52 billion excess, and for the fiscal year (nine months) there was a $99 billion excess.”

    So it’s not broken?

  12. “LarryFine says:
    July 18, 2011 at 3:02 pm
    it’s simple… Obama is willing to hold our seniors hostage… politics over people (old people especially). Disgusting”

    Kinda reminds me of you of death panels, huh?

  13. Make that “kinda reminds you of Death Panels, huh?”

  14. aislander says:

    commoncents: Read the NY “Times” piece on the bad economic effects of combining spending cuts with tax increases–it may change your mind…

  15. You don’t have to raise taxes immediately. You can set triggers and criteria for future raises and cuts based on actual economics and targets for inflation, uneployment, deficit, ballanced sharing of the costs and paying off.

    But the people hoarding the money do not want to to this as they don’t want to pay anything; they want to push it to the people with less political influence. Guess who that is. And now we have a vicious circle.

  16. taxes, taxes, taxes….

    for those of you that grip about the evil corporations, do you not see that when you take the money that you have earned from work and hand more and more of it over to the government (federal, state, local), you are trading one crack dealer for for another…

    oh no, we don’t have to raise taxes immediately… my questions are, wy do we have to raise them at all? why don’t we just live within our means… $2,200,000,000,000.00 trillion dollars a year… isn’t that enough?

  17. LarryFine says:

    What did you say K ?

  18. commoncents says:

    aislander – I read it. Interesting article. However, it provided support for both sides of the argument and did not advocate one or the other. It even specifically showed that economists can’t even agree on the correct course of action. . If I had to choose one or the other I, too, would choose spending cuts over tax increases. However, spending cuts alone aren’t going to get it done because we have allowed ourselves to go too far down the debt road and large government. It is my belief that the necessary draconian cut into government spending would devastate the economy causing us to spiral further out of control. That’s why I’m advocating both..decreased spending and increased taxes – a balanced and methodical approach to give private enterprise a chance to take over the work load. I liken it to a man who had been crushed by a heavy object. If we remove the object too quickly he will go into shock and die. However, if we remove it slowly and treat the man with proper medical treatment it’s possible for him to survive.

  19. LarryFine says:

    Ah, nothing.

  20. Next time you have nothing to say you could save yourself the effort of typing a post saying nothing….

    ;-)

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