The democrat line is that SS checks won't go out on August 3,2011 if the debt limit is not increased. Fact: The Social Security Trust fund holds $2.4T in U.S. Treasuries that by law can be liquidated to cover any shortfall in SS payouts. If the treaury needs to sell new treasuries in the open market to redeem trust fund securities, those securities will be exempt from the debt ceiling limit. The democrat line is that if the debt ceiling limit is not increased, the U.S. will not be able to pay the current interest due on it's debts. Fact: Treasuries mature daily, not monthly and the daily average cost of paying of those securities is, on average, $1B per business day. Issueing new treasuries to replace the maturing treasuries has no impact on the debt limit. Current law also requires debt interest to be paid first. The democrat line is that medicare payments will not be made. What happened to the trust fund for that? Note: During the last 21/2 years of the Clinton administration, the 15% increase in payroll taxes (SS and medicare) effective 9/1/1998, went into the general fund and not the trust funds. Interestingly, that added $1T to the BushII deficit and showed a budget surplus under Clinton. Nice slight of hand. Any comments?
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Fact: The Social Security Trust fund holds $2.4T in U.S.
Treasuries that by law can be liquidated to cover any
shortfall in SS payouts. If the treaury needs to sell
new treasuries in the open market to redeem trust fund
securities, those securities will be exempt from the
debt ceiling limit.
The democrat line is that if the debt ceiling limit is not increased, the U.S. will not be able to pay the current interest due on it's debts.
Fact: Treasuries mature daily, not monthly and the daily average
cost of paying of those securities is, on average, $1B per
business day. Issueing new treasuries to replace the maturing
treasuries has no impact on the debt limit. Current law also
requires debt interest to be paid first.
The democrat line is that medicare payments will not be made.
What happened to the trust fund for that?
Note: During the last 21/2 years of the Clinton administration, the 15% increase in payroll taxes (SS and medicare) effective 9/1/1998, went into the general fund and not the trust funds. Interestingly, that added $1T to the BushII deficit and showed a budget surplus under Clinton. Nice slight of hand.
Any comments?