Posted on 10/06/2021 4:19:10 PM PDT by Onthebrink
“A default could potentially — but not necessarily — delay the payment of Social Security benefits, which reach about 65 million Americans in some form,” the Times said. “It could also delay payments to government contractors, including hospitals that accept patients who use Medicare and Medicaid benefits.”
A default would also have effects that trickle down further, including to state-run programs, as well as the expanded child tax credit. The next scheduled payment from that is October 15, which is before the possible default date, although another payment is due November 15.
(Excerpt) Read more at 19fortyfive.com ...
What about deferring the pay of government employees?
the only reason to raise the debt ceiling is to borrow more money.
Democrats are talking about “default” and their useful idiots in the press echo the language. This is utterly dishonest.
Failure to raise the debt ceiling would simply mean that the fedgov can’t borrow any more money. That would cause a world of hurt because we are currently funding much of the government through wild borrowing. With no debt limit increase, the feds would have to go on a cash basis immediately. That means cutting eleventy seven gazillion dollars of borrowed money out of the current budget overnight.
It couldn’t happen to a nicer bunch of people.
The fedgov could still spend every dollar that comes in. Debt service is legally obligated to be paid first. Then would come entitlements. Remaining programs would be funded as cash became available.
Default is something entirely different. Default is debt cancellation. The fedgov would announce that it is cancelling debt, in whole or in part. If it were full default, this of course would destroy every pension plan and bank in the country, and a lot of other institutions internationally. And going forward, it would be a cold day in hell before anyone bought U.S. government securities again, and then there would be a hefty premium attached to reflect political risk. Today the dollar is still the world’s reserve currency and institutions consider U.S. government securities to be investments. After default, buying U.S. securities would be like buying Venezuelan debt. Not a good thing to do unless you trust Maduro.
The older you get the less a life sentence means.
Go back to pre 1960s and eliminate every single government agency established since.
Eliminate the US Forest Service and the National park service. Eliminate all wilderness set asides.
Turn all those back to the counties-the USFS, and the states-the BLM lands and National Parks. All those are managed under a trust by the federal government. Take the trust away.
Well we know from last time they’ll find to money to get extra park rangers to make sure no one sneaks in.
“they have the media scare old people into thinking their checks won’t come “
I remember in the Seventies hearing that on TV. I was in my twenties and wondered if “the old people” believed it.
Now I’m old .. I don’t believe it.
They think it’s their money and it goes on trees.
You are correct. Wonder why Bobl does not know that.
If by “Third World Nations” you mean the USA then you would be correct.
The interest “earned” is what the Federal Govt “pays” the “fund”...
The leftist are such liars. One of the few things exempted from a debt ceiling debate is....yep...Social Security.
They just try to scare seniors.
BINGO!
I am not sure you understand how social security is actually funded !
The working generation’s social security taxes pay the social security benefits of the previous working generation who are now retired. See https://www.ssa.gov/history/ratios.html
In 1940 when this graphic starts there were 159.4 workers paying in per one retiree receiving. In 2013 that ratio has shrunk to 2.8 workers paying in per one retiree receiving. I find it interesting that SSA has not updated that graphic. As long as those ratios are high the system sort of works .The current ratio must really be bad ! This is why many people call it a legal Ponzi scheme. Also another problem with the system is with our lengthening life spans thanks to modern medicine you can end up taking out far more then you put in. Consider Ida May Fuller the first SS recipient (She was in the news reels - big news splash !) Ms Fuller filed her retirement claim on November 4, 1939, having worked under Social Security for a little short of three years. During her lifetime, she collected a total of $22,888.92 in Social Security benefits and paid in $24.75.
Least you think I’m making this up here’s her wiki link https://en.wikipedia.org/wiki/Ida_May_Fuller
There have been tens of thousands of Ida May Fullers (Maybe 100s of thousands !). No wonder the system has problems. It was deliberately set up this way by the financial geniuses of FDR’s administration to make generations more dependent on each other and guarantee future Rat votes. The financial industry warned the FDR geniuses that the system would eventually crash and that it needed to be on a firmer financial footing, but no the FDR geniuses didn’t listen. They were lawyers and from Harvard, reality will bend to their will. Another thing you always hear people claim “Its my money !”. Actually it isn’t ! There have been at least 3 federal court cases saying you have no property\ownership rights in the money. If it was your money you would have property rights in it. It would be among your assets of your estate and you could pass it to your heirs. You can’t !! Bottom line is its actually a tax, like any other tax. The government demands it, takes it and funds the system and borrows from it.(Which makes the whole shaky thing even more unstable !)
I am pretty sure Medicare is funded the same way but I haven’t proved it to myself yet ! I think how the SS systems was funded and set up was what was behind Roberts reasoning on allowing Obami-care. (SS did pass Constitutionality challenges!) More bad law & the Constitution more intellectually tortured to make it fly !
Really government has been misrepresenting SS for some 70+ years. Rats love that the public won’t pay serious attention to it (Meaning they won’t really try to understand how the system works !) and that people for the most part have swallowed its misrepresentation hook line & sinker. Republicans know its a vote loser to talk reality about it. So the SS system sails on until it crashes as all such systems (Ponzi) do !
You have proof of that statement, that fica was used to lower taxes???
I want the EBT cards to be at zero for a month, I have enuff popcorn, I think.
Joe Bidet was recently asked this very important question—and he mumbled incoherently...it sounded something like...
it depends..
;-)
“You have proof of that statement, that fica was used to lower taxes???”
Just compare revenue without FICA to spending levels, and you’ll see.
No.
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