Obama warns - August 3rd - Possibly no social security checks will be paid.

Think it's about time the Social Security Administration calls all it's $2.5 trillion in IOUs.

Social Security IOUs stashed away

PARKERSBURG, W.Va. | The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.

It’s time to start cashing them in.

For more than two decades, Social Security collected more money in payroll taxes than it paid out in benefits - billions more each year.

Not anymore. This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.

Is this normal?

Does a President of the USA usually go on TV and allude to the country having no money to pay benefits to needy people?
And does he normally do this 4 weeks or so before those payments are due?

If this is not normal, then America just became a third world country!


Good luck!

Originally posted by ManBehindTheMask
Wheres the "We need to work together" attitude Mr.President?

Maybe I'm missing something here but how are the Republicans working together in this situation? They haven't compromised on anything as far as I can tell. The Democrats, as flawed as they are, are at least agreeing to trillions in cuts.

The Republicans continue to not even discuss tax cuts on the wealthy, even though the Bush tax cut was meant to end two years ago. Where are the jobs? Where is that money going? Back into the economy? Nope. Instead they continue to lie by saying "We can't raise taxes on the job creators." What a crock. Their taxes are lower than they have been in decades, time to pony up.

As far as Obama goes, bad move by going the fear tactic route.

Just further proof that we need some new political parties, these old rich farts aren't getting anything done.

Originally posted by Glinda
reply to post by Janky Red

 

Go back thru the thread, in none of my posts on Obama's doubtfulness of an August 3 Social Security check printing did I call his fearmongering words "inept." The terms I used (in various posts) were dispicable, dirty, nefarious.

Nice, obfuscating, try at a "gotcha.'

No, you allude to thinking Obamas poor performance is fiend ineptitude.
Yet you accuse him of being adept in this situation regarding social security, due to
The positive political gain he might garner. Those two circumstances contradict one another

L

reply to post by Janky Red


Maybe you missed my post above. Here is some more detail. The USA will NOT default. Mr. Rush Limbaugh stated it nicely:

Now, the debt is the bonds issued by Uncle Sam backed by the full faith and credit of the US. Deficit spending is all the insane spending the government does that outstrips the money that it takes in from taxes, fees for government services, sale of these bonds and government land, all of that. No one is saying we should default on our debt. What I'm saying is we won't. We can't. I mean we literally can't. We couldn't if we wanted to. Well, we could if we wanted to if we just stopped accepting payments which is what we would have to do. We cannot default, and there's no reason to default. It's a scare tactic. With the number of bonds that the Treasury has issued, it costs the government about $20 billion every month to service this debt. But the government actually takes in about $200 billion every month, minimum. So we easily have enough to cover the debt service of these bonds. In fact, we could easily cover debt service even if the debt limit was slashed instead of raised

The above quote
Maybe also check this one.

I am an older, disabled woman completely dependent on my SS check. If SS checks not going out will be the straw that finally, finally, rallies a nation to say enough is enough, I will gladly become homeless!!

TPTB either want to keep everyone quietly complacent, or they want the growing pain felt by so many of us to be blamed on the "other side" so as to win the next election - both sides trying to protect the wealthy benefactors that they need in our current system to get elected.

reply to post by Janky Red


There are ample funds being removed from July paychecks, being paid into the Social Security 'Trust' (or is Obama admitting there is NO such fund) to cover the August 3 Social Security checks.

Originally posted by Heros_son
reply to post by Janky Red

 

Maybe you missed my post above. Here is some more detail. The USA will NOT default. Mr. Rush Limbaugh stated it nicely:

Now, the debt is the bonds issued by Uncle Sam backed by the full faith and credit of the US. Deficit spending is all the insane spending the government does that outstrips the money that it takes in from taxes, fees for government services, sale of these bonds and government land, all of that. No one is saying we should default on our debt. What I'm saying is we won't. We can't. I mean we literally can't. We couldn't if we wanted to. Well, we could if we wanted to if we just stopped accepting payments which is what we would have to do. We cannot default, and there's no reason to default. It's a scare tactic. With the number of bonds that the Treasury has issued, it costs the government about $20 billion every month to service this debt. But the government actually takes in about $200 billion every month, minimum. So we easily have enough to cover the debt service of these bonds. In fact, we could easily cover debt service even if the debt limit was slashed instead of raised

The above quote
Maybe also check this one.

Rush is attempting to downplay the severity of the situation.

A default can occur when a contract is breached... Like your credit card jumping to
35% when you fail to pay a bill on time... Breach of the debt ceiling with initiate all kinds
Of nasty clauses which will immediately cue a massive treasury raid. Unfortunately a rsid at
this point will gut the treasury and debase the currency. Investors always manufacture an
Out, this out will toss the US

reply to post by Open2Truth

I will gladly become homeless!!

That's the beauty of it. No you won't!! When the last straw brings the camel to its knees, the race horses will swoop in to pick it up and champion it to the highest hills!! We need a rally call, and when it finally reaches that point, you won't have a thing to worry about!

My home is open, and I know from the response in Joplin, MO, that all of our neighbor's homes are open as well! Some people have been preparing for that last straw for 50 years! Most people I know have been preparing since at least the 1970's.

Be vocal, be active, be prepared, be trustworthy, and trust the people around you. The government is fiction anyway. It is just a collection of people with perceived power, but they seem to forget that from time to time. We have become so comfortable and complacent that we have forgotten it as well. When the last straw finally hits the collective, then the government will be exposed as a collection of people, and those people will rally alongside us, and there won't be a government to fight, there will just be friends and neighbors rebuilding a nation.

Politicians need to watch that episode of South Park where the senior citizens take over the town. Lest we forget, the folks that just within the past 5 to 10 years started drawing social security also contain a lot of people who were hippies as youngsters.

Originally posted by kennylee
They have no right to hold peoples Social Security. This is not an entitlement. Working people have paid their own money each and every paycheck into this retirement fund. It is the peoples money, not the governments.

If this is true and they do stop the Social Security checks, I will say that this is the line in the sand they do not want to cross. There is a thread on ATS that asks if they are provoking or oppressing the people. This is truly a provocation....

That thread is here: www.abovetopsecret.com...

And this is exactly the kind of thing I was talking about. Even if it is a bluff. And I hope it is.

Are you being provoked America? Or just oppressed?

Originally posted by Argyll
Is this normal?

It is for countries that spend more than what they have and overstretch their their resources with a imperialistic approach.

Does a President of the USA usually go on TV and allude to the country having no money to pay benefits to needy people?

No! What usually happens is that the leader would go in front of a podium and will lie to his constituents, the countries creditors saying everything will be fine and then all of the sudden they stop paying their debts like Argentina and Russia did.

If this is not normal, then America just became a third world country!

No it hasn't...yet.... Unless you are really young or been living under a rock, this country has faced deficit problems for years now and debt problem for decades. Everyone from responsible republicans, responsible democrats and other citizens have been warning about this for years.

The problem with Social Security is that it was supposed to supplement retirement income, not replace it. Those who failed to plan ahead or were destroyed in the the crash of 2008 and depend upon SS are in for a world of hurt.

People may think this only affects those who are currently on SS, but those people have family as well. The elderly may not be able to revolt, but their children can.

Those who have yet to qualify for SS had best start saving.

The writing has been on the wall for quite awhile now. But it was bad news, so people chose to ignore it.

This is just one of many wolves at our door.

reply to post by kennylee


Obviously those funds were spent rather than saved for future use. The Kitty was a bottomless pit for workers to throw money into. You feelin' Greek out there yet?

To all the people that are saying tax the rich... why? First off, both sides are playing class warfare and you are falling right into the trap. Corporate jets and oil exectives my butt. Is he not living life like a rockstar? Where did he tighten his belt? First he wants to rally the lower and middle class and now the seniors. Back to raising taxes. First off you hurt small business. Thats where the majority of the jobs are created. Second, do you really think its going to hurt the billion dollar companies? They are going to pass the tax increase right back down to us through price increases on goods and services. Raising taxes is no where near the way to go. Cut spending is the only way to balance the budget. As a matter of fact, do away with the current tax system and go with the Fair Tax. Take power away from the government. For those that never heard of the fair tax, google it for all the details.

reply to post by TDawgRex


Another problem was when social security started getting raided by the federal government as a budget balancing tool. The reason why Social Security is being such a drag on the government is because they raided the fund and now they can't pay it back. Eventually the system wold have need some reforming but this just sped up the process.

Obama warns - August 3rd - Possibly no social security checks will be paid....
And the people warn - August 4rth -possibly a Guillotine will be sitting on the white house lawn...

Originally posted by Glinda
reply to post by Janky Red

 

There are ample funds being removed from July paychecks, being paid into the Social Security 'Trust' (or is Obama admitting there is NO such fund) to cover the August 3 Social Security checks.

The fund is gone, peanut shells remain, iou's, securities will
Be void/voidable if the currency is debased

reply to post by Janky Red


So how does a default occur if principal and interest on the debt are paid? As long as there is revenue to pay the principal and interest there, no default has occurred. If I'm not mistaken debt service runs something like 12% of US 2010 Federal budget. That leaves 88%of the budget that can be cut to some degree (actually more since we run a deficit).

If you'd like to see the "official" debt to the penny numbers go here.

This is pure scare tactics by Obama and further shows how flacid the MSM is. If I were interviewing the President I'd immediately follow up with the question "So what happened to the Surplus that Social Security has run over the past several decades, are you saying their is really no "trust fund" Mr. President?"