레이블이 Us Debt Ceiling Limit History인 게시물을 표시합니다. 모든 게시물 표시
레이블이 Us Debt Ceiling Limit History인 게시물을 표시합니다. 모든 게시물 표시

2013년 11월 28일 목요일

About 'united states debt ceiling'|United States and the Debt Ceiling







About 'united states debt ceiling'|United States and the Debt Ceiling








               In               response               to               a               question               in               a               recent               CBS               interview               of               whether               he               could               guarantee               Social               Security               checks               would               be               mailed               out               on               August               3rd               if               the               debt               ceiling               dispute               is               not               resolved,               President               Obama               stated               "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."               The               fact               of               the               matter               is,               President               Obama               knows               this               is               merely               a               scare               tactic,               and               Social               Security               checks               should               have               nothing               to               do               with               the               debt               ceiling.
               Technically               speaking,               the               United               States               government               does               not               borrow               money               to               send               out               social               security               checks.

The               Social               Security               trust               fund               actually               loans               the               government               money.

Now,               in               theory,               the               social               security               deductions               the               government               collects               should               go               directly               to               make               Social               Security               payments,               and               whatever               is               left               over               should               be               saved               to               make               future               payments.

Right?

Social               Security               should               be               an               entirely               different               fund               than               the               general               fund.

But               that's               not               how               it               works,               at               all.
               According               to               www.

ss.gov,               the               official               website               of               the               Social               Security               Administration,               by               law               collected               social               security               taxes               must               be               used               to               buy               government               bonds.

Not               just               any               bonds,               but               bonds               that               are               "special               issues".

The               can               be               redeemed               at               any               time               for               full               face               value,               plus               interest.

Where               does               the               cash               go?

It               goes               to               the               general               fund               of               the               United               States               government,               to               be               spent               as               Congress               sees               fit.

It's               spent               on               anything               and               everything               but               social               security.
               Of               course,               there               is               that               pesky               problem               of               making               social               security               payments               every               month.

When               the               social               security               administration               needs               to               "cover               expenditures"               as               they               call               it,               they               simply               cash               in               some               special               issue               bonds,               and               make               their               payments.

In               2010,               the               Social               Security               Administration               bought               about               1,020               billion               in               bonds,               and               they               sold               929               billion               to               cover               expenditures.

Yes,               Social               Security               actually               bought               more               bonds               than               they               sold.

That's               not               to               say               there's               enough               cash               coming               in               from               taxes               to               cover               payments.

In               fact,               2010               was               the               first               year               that               revenues               were               not               enough               to               cover               expenditures.

But,               the               fund               has               not               shown               a               negative               since               1982,               according               to               government               figures.
               So,               if               the               debt               ceiling               is               not               raised,               and               the               government               defaults               on               the               debt,               it               will               in               fact               hurt               Social               Security.

But               only               because               our               government               has               decided               to               invest               our               money               in               itself,               and               not               keep               the               fund               separate.

But               as               far               as               Social               Security               checks               not               being               mailed               on               August               3rd               that               will               be               by               choice               and               not               by               necessity.

Incoming               revenues               could               be               used               to               cover               current               payments               by               simply               using               the               money               to               buy               back               special               issue               bonds.

Even               if               incoming               revenues               do               not               cover               all               of               the               outgoing               payments,               most               could               be               made,               or               they               all               could               be               made               at               a               moderately               reduced               rate.
               Obviously,               for               seniors               and               other               dependent               on               Social               Security,               a               reduced               payment               is               not               a               great               option.

It               does,               however,               beat               the               president's               option               of               being               completely               cut               off               because               he               refuses               to               compromise               on               a               debt               deal.

His               use               of               the               Social               Security               fund               as               a               scare               tactic               to               blame               Republicans               shows               he               is               not               ready               to               compromise.






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