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This Is What Gets Defunded If The Treasury Has To Prioritize Payments
Business Insider ^ | 07/25/2011 | Joe Weisenthal

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 ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: debtceiling; funding; treasury
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To: SeekAndFind

Look how health and human services grants are hidden in the middle.

These “grants” are payments to the states so the states can use their money for other stuff and represents creeping federalism at its most malignant


61 posted on 07/25/2011 8:50:39 AM PDT by yldstrk (My heroes have always been cowboys)
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To: central_va

Y U P


62 posted on 07/25/2011 8:50:57 AM PDT by SMARTY (A claim for equality of material position can be met only by a government with totalitarian powers.)
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To: kabar

SS receipts are even or close to their expenditures last I heard though I imagine things have gotten worse (and Obama reduced receipts recently- Dems can’t help raiding SS).

Didn’t know medicare was funded that way, I wonder why?

Anyway it still comes out surprisingly close IMHO!


63 posted on 07/25/2011 8:51:01 AM PDT by mrsmith
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To: digger48

And just where is he supposed to work digger


64 posted on 07/25/2011 8:52:19 AM PDT by yldstrk (My heroes have always been cowboys)
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To: Iron Munro
Estimates for 2011 Government Revenue hover around $4.5 trillion.

Where did you come up with that figure? They were only $2.2 trillion in 2010. And our expenditures were $3.5 trillion.


65 posted on 07/25/2011 8:52:39 AM PDT by kabar
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To: SeekAndFind

read later


66 posted on 07/25/2011 8:54:00 AM PDT by New Jersey Realist (Congress doesn't care a damn about "we the people")
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To: SeekAndFind

“Other Spending $52b”. It’s the biggest item in either list and nothing in it is important enough to be broken out. In my company I think we’d cut that and say come back to us on individual items you feel like you can justify.

These aren’t “all or nothing”. For example Dept. of Ed is one of the bigger items. You’ll get a lot of push back saying we can’t cut Pell Grants. But those are probably $5-7b (I think 40% of the budget). There’s another $12b+ allowing the DoE to screw local schools with NCLB. We can certainly cut that budget by 50% without many downsides.


67 posted on 07/25/2011 8:54:19 AM PDT by LostPassword
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To: Grunthor

Yes, it has become welfare. I knew several people last year who I found jobs for. They were all but hired. The jobs were just convenience store $8 an hour. They were all too lazy to put down their draft beer and go fill out the forms.


68 posted on 07/25/2011 8:57:08 AM PDT by Lumper20
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To: SeekAndFind

Who’s the genius who thinks it’s more important to pay unemployment benefits than active duty military????


69 posted on 07/25/2011 9:02:21 AM PDT by pgkdan (Time for a Cain Mutiny!)
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To: mrsmith
SS receipts are even or close to their expenditures last I heard though I imagine things have gotten worse (and Obama reduced receipts recently- Dems can’t help raiding SS).

Not even close. SS ran a $29 billion shortfall in 2010 or about $2.5 billion (enough to pay active duty military salaries) and an anticipated $34 billion in 2011 or about $3 billion a month.

Didn’t know medicare was funded that way, I wonder why?

Because if people had to pay payroll taxes and premiums to cover the costs, the increase in taxes and premiums would be enormous. And the monthly diffence between what premiums pay and what must come out of the general fund amounts to about $19 billion a month. And that number will continue to climb as 10,000 baby boomers a day retire from now until 2030. If not reformed, Medicare will consume one out every two federal non-entitlement dollars by 2085.

So the shortfall for SS and Medicare amounts to about $22 billion a month and it will increase every year.

70 posted on 07/25/2011 9:05:25 AM PDT by kabar
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To: SeekAndFind
Anyone know why politicians use the phrase “cuts in domestic spending”? Why aren't they talking about cutting all foreign aid? Just chop it off instantly. Why don't they talk about cutting payments to the IMF and the UN et al??

Why is that?

71 posted on 07/25/2011 9:09:04 AM PDT by dynoman (Objectivity is the essence of intelligence. - Marylin vos Savant)
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To: kabar

A horribly expensive part of Medicare is payment for ESRD. Dialysis costs about $1200 every time you walk into the clinic (more or less - my bill for March was $9600 but I was on the machine only twice weekly to save money). I finally got Medicare straightened out (I had to!! My private insurance insisted that BY LAW, after 30 months of [expensive] medical payments, they had to become secondary to Medicare and that they would only pay 20% of the cost of my care from now on). My Medicare “premium” is all of $120 a month, while my COBRA payments are $629 per month.

ESRD cost Medicare $28 billion last year for about 500K people including an unknown number of illegal aliens.


72 posted on 07/25/2011 9:10:03 AM PDT by TenthAmendmentChampion (Darwinism is to Genesis as Global Warming is to Revelations.)
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To: mckenzie7

I was just getting started.
:)

Constrained by other duties.

But y’all get the drift that there’s PLENTY of lard to be trimmed before we start hitting the military and retirees.

Good grief.


73 posted on 07/25/2011 9:10:39 AM PDT by Westbrook
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To: SeekAndFind

IIRC, I read somewhere that cuts of 25-40% just gets us back to 2005 spending levels.


74 posted on 07/25/2011 9:10:39 AM PDT by WOBBLY BOB ( "I don't want the majority if we don't stand for something"- Jim Demint)
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To: TenthAmendmentChampion

Medicare recipients receive three times the amount in benefits that they paid into the system thru taxes and benefits. The system is unsustainable.


75 posted on 07/25/2011 9:12:22 AM PDT by kabar
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To: SeekAndFind; All
 

 

76 posted on 07/25/2011 9:12:45 AM PDT by potlatch (They that sow the wind shall reap the whirlwind......)
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To: SeekAndFind

Go to default!!!!


77 posted on 07/25/2011 9:13:48 AM PDT by dalereed
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To: All
Click -> "cuts in domestic spending"

Why do they seem to talk only about cutting domestic spending?
78 posted on 07/25/2011 9:14:25 AM PDT by dynoman (Objectivity is the essence of intelligence. - Marylin vos Savant)
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To: All

79 posted on 07/25/2011 9:14:30 AM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: DaveTesla

You identifed the bs factor in this whole sham.

Give Pakis 7.5 Billion, not to mention all the other foreign governments plus the billions we dump into the UN then threaten not to pay the Americans’ armed forces.

Traitors.


80 posted on 07/25/2011 9:14:55 AM PDT by SaraJohnson
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