Posted on 07/25/2011 8:11:00 AM PDT by SeekAndFind
It's been assumed -- but never confirmed -- that if we hit the debt ceiling, that The Treasury could prioritize payments, continuing to make bond coupon payments and entitlements, while shutting off other spending.
The Bipartisan Policy Center has put together a presentation (.pdf) on the debt ceiling, and what prioritization would look like (via Stone Street Advisors).
These two charts show it all.
(Excerpt) Read more at businessinsider.com ...
Pay the debt and pay SS and medicare out of their current receipts...
Leaves about enough to pay military and half of everything else.
Cool. No big problem.
Agreed. But you will have a lot of folks tell you it doesn't matter. I agree with you.
Withholding is pernicious. Same with business taxes - just hidden in higher prices, lower wages, or reduced ROI.
Defund Dept. of Ed. NOW. It is NOTHING to help the kids. Every time money is thrown at Educ., it means another layer of bureaucrats and administration with no $ getting to the children and schools.
vaudine
good point about refunds.
was an article this morning, talking about how lots of people, mostly women, get EITC “refunds” of 6-9 thousand!
http://www.freerepublic.com/focus/f-news/2753527/posts
i’d like to see a grand total, of just EITC
(income redistribution) refunds.
I overheard a fella the other day who was complaining that it was taking so long to get approved for SS disability.
He said if they don’t hurry, his unemployment is going to run out!
2 years ago, he was working and on nobodys teat.
But he’s sat on his ever-widening, sedentary behind for 2 years, and now has trouble walking.
He’s also now recieving healthcare for the whole family via Hoosier taxpayer provided medical, and got a bunch of energy-saving upgrades done to his house free of charge.
We’re teaching them how to do this.
It’s pretty clear Obama’s plan A is not to agree to a debt agreement and then maximize the pain and blame it all on the Republican House. Plan B is to get an agreement with tax increases, then use that to defeat Tea Party members who voted for it.
hehe... I agree with you.
However, urban areas will become war zones quickly.
Federal Revenues are approx $200 billion per month. You can easily pay active duty military and veterans affairs. Those two items are a drop in the bucket. The rest of the list could disappear and most people would never even know it had been shut down.
Bipartisan Policy Center.....
Hahahahahaha...
A US congressional panel rejected a proposal Thursday to cut off 7.5 Billion in aid to Pakistan.
So congress votes to give 7.5 Billion to Pakistan and
wants to default on 2.9 billion on active duty military
pay?
Would you like the red pill or the blue pill?
This whole budget is B.S. designed to fleece the public
and rob more of their dwindling property.
hehe... I agree with you.
However, urban areas will become war zones quickly.
I live nowhere near an urban area so.....win-win.
aye that
pay unemployement benefits before the active military? I think not. Cut unemployment checks in half and pay them both.
I have seen no effort by the administration to ask which retirees would be willing to forego all or part of their SS for some period of time- 6 months, or a year - certainly some would volunteer. Stop allowing SS for those age 62 unless they are certified as disabled
MEDICARE costs can be immediately shifted more onto individuals by establishing and raising deductibles
Ditto with MEDICAID, no more “free” visits, pay $1 or $5 or $10 and cut down on abuse of the system
Cut the cap gains tax to 10% for a 1 yr period, and stand back
I CALL SHENANIGANS...
This “Report” is bogus bullsh..t.
ONE: The “Unemployment insurance” mentioned is the Federal Extensions for 99-weekers. STATES have their own Unemployment Insurancce programs that the feds have been subsidizing since Porkulus.
TWO Revenues are closer to $200B a month, Not $172B
I’m in the heavily-wooded area of the burbs and have numerous contingency plans in my own household and with my neighbors to combat any insurgency. Unless there are more mindless unemployed zombies and thugs than there is ammo, I think we’ll be okay.
Cut out defense vendor payments. First of all, it’s filled with waste and over charging. Second, just force GE to pay the vendors with the taxes they should have been paying.
Cutting out all the government checks will not happen until there is no choice. And when that happens it’s every man for himself because things will get ugly.
That’s actually a pretty small list of things that wouldn’t get paid for. The other day I heard Erik Erikson whining on his radio show about the demise of NASA. NASA is the kind of thing you get rid of when you’re broke, not just NPR, Planned Parenthood or the Department of Education. Things I can also think of:
* Aid to Israel and any other foreign aid
* National Parks
* Most overseas military bases — pull out of Europe, South Korea, Japan and let them pay their own freight except for vital bases that support operations in our national interest
* Virtually all nonessential Federal agencies
I’m sure you all can think of things to add to the list. That is our new reality, courtesy of those who overspent and overpromised before us.
Agreed. Pay the military, pay the vets, give the tax refunds (just as much of a debt as interest payments). Drop unemployment benefits (why is the fedgov involved with them anyway - I pay unemployment taxes to my state).
I wish I had the same confidence about Retired Military Pay, but I do not...
Get rid of our outrageous payments to the U.N. STOP THEM NOW!!!
we are so screwed up
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