Obama stirs up the fear, telling CBS News that social security, disability, and veterans benefits checks may not get mailed:
"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.The interview will air tonight. If this is true, wouldn't it be sensible to ask the president why he and the majority he enjoyed for most of his term let things progress to this point? Just kidding. The liberal media wouldn't dream of such impertinence.
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."
But James Pethokoukis disputes the empty coffer claim:
As is clearly shown, there is enough cumulative money coming to pay interest, SS, Medicare and defense. Not that there wouldn’t be cash managements issues.Read the rest and see the chart. Michele Bachmann agrees.
Read about Mitch McConnell's scheme here. Via the Corner, a reaction scorecard:
Pro: Fred Barnes, Jennifer Rubin, John Podhoretz, Grover Norquist, Allahpundit
Con: Michelle Malkin, Erick Erickson, Heritage Action For America, Newt Gingrich, Philip Klein, Brent Bozell
Michelle Malkin:
In any case: Why is facing the consequences of government profligacy not an option?***
Why is putting an end to government spending without end not an option?
Politicians seeking to “reassure markets” and protect defaulters gave us TARP and AIG and Fannie Mae bailouts.
When is enough enough?
Whatever you think of McConnell's contingency scheme, this speech is worth watching:
Linked at MichelleMalkin.com -- thank you.
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Obama threatens this every time he wants $$$. And he keeps getting it.
ReplyDeleteToday, Rush pointed out another practical consideration affecting this threat: that the gov't could never retool their Social Security check computers by August 3.
I've tried to imagine Obama putting those federal Social Security employees out of work. I can't. He can't possibly be that desperate yet.
I'm not a huge McConnell fan at all, but am intrigued by the way Allahundit described the contingency plan. Put me in my place, I could be totally wrong...
ReplyDeleteI guess, given the fact that with Obama in office and Dems in control of the senate, we can't fix anything, McConnell is proposing this strategy to give Obama enough rope to hang himself. But I can't see it working.
ReplyDeleteNRO:
"The Kentucky Republican has proposed a convoluted scheme whereby the debt ceiling would increase and the president would have to submit specific spending cuts. Congress would have the power to keep the debt ceiling from rising if it amassed a two-thirds majority that found those cuts inadequate. The goal is to keep the government from hitting the debt ceiling, defaulting on its bonds, or interrupting popular programs on which millions of people rely, while also holding the president accountable for his fiscal choices.
That’s a highly optimistic gloss on it, anyway. In reality, everyone would consider the Republicans partly responsible for an increase in the debt ceiling if they adopt this course; everyone would consider them to have lost their nerve for a fight; everyone would expect the spending cuts not to happen; and everyone would be right. Which is why it does not appear that House Republicans, or even all Senate Republicans, are going to follow this course."
http://www.nationalreview.com/articles/271755/leadership-default-editors
b-b-b-but, I thought social security was in a lock box so payments would be guaranteed! After all, that's what Nancy Pelosi told us back in 2005:
ReplyDelete“It is simply wrong to suggest that the Social Security Trust Fund does not exist, or that the securities held by the Trust Fund are merely pieces of paper. For a president to even suggest that the federal government might, for the first time, default on a security backed by the full faith and credit of the United States unnecessarily misleads American workers…”
Curiouser and curiouser ... ;)
h/t Greg Letieq: http://tinyurl.com/6dh83yp