Why is it August 2nd that the U.S. Treasury says the checks start bouncing?
Perhaps it is political, perhaps it is real – but the significance of August 2nd is it is the day the U.S. Treasury has to have on deposit the funds to send out the money for Social Security checks – about $50 billion.
Now you might be thinking – the Social Security trust fund is holding about $2.5 trillion in assets and still has FICA taxes coming in – the reality of Al Gore’s Social Security Lock Box hits the fan. The U.S. Government has been funding its operations in part by borrowing the money from the “Trust fund”. There are no dollars in it, only IOUs from the U.S. Treasury.
You can be sure the AFL-CIO and government employee unions are busy preparing for August 2nd. Social Security is more than just old people pensions – it is also Disability (not funded by a separate tax – it basically has first dibs on the retirement money) and Survivor’s benefits (children of people who die get a check until college)
President Obama has realized it is a successful strategy to use the U.S. Military as a weapon against Republicans. As August 2nd approaches… look for disable veterans of wars started by Republicans and the orphaned children and the widows of military veterans to be propped up in front of TV cameras.
The way “State of Fear” works is that at a point in time like this, the political leaders will threaten to cut off the most necessary services first – look for threats of not paying the military, emptying the Federal prisons, closing airports, shutting ports, turning off the power grid, and killing old people – not ending Pell grants, Title 1 school money, Section 8 housing vouchers, 99 week unemployment checks, food stamps for 44 million people, free school lunches, and the $50 billion we’re spending at the National Institute of Health for God only knows what.
and don’t forget that killer of men’s sports and bankrupter of mid-level programs from coast to coast — Title IX. That program is TOO important to the survival of the republic to ever be cut.
I don’t care much for that “great American” Bill Cunningham but I agree with one thing he said last night — we are so far in debt we are now in a catch-22. Raise the ceiling or don’t raise the ceiling, we are in for a hurting.
I think there is a 99% chance that they raise the debt ceiling again by August 2nd — 1) because as long as they can’t still create worthless paper they will keep “letting it ride” until we finally destroy our currency and exhaust the wealth of our nation. 2) because Republican leadership have no spine and Democrat leadership are more than happy to sink “evil America”, 3) because 50% of Americans pay no taxes and receive only benefits from their sweet Uncle, they don’t care about taxes, just don’t cut off the supply to these wonderful teats!
With a few years (months?) we will likely end up like Greece is now, with outside forces (IMF for instance) dictating to us how we will run our country. Obama will be thrilled with this since he believes that Liechtenstein and Djibouti are co-equal in tradition and prestige to the United States.
I left out Title IX because there isn’t any government funding invokved – just rules for schools to follow.
A women on Wall Street Journal this Morning was giving a long report on how the coming fall TV season is full of shows with strong women and effeminate men “reflecting what’s going on in the world”.
Okey Dokey.
you are correct. Other than the well paid bureaucrats and enforcers of Title IX, there is no other direct cost. It is one more indirect social engineering and wealth redistribution scheme courtesy of the nanny state.
I have literally seen parents over the past 20 years force their daughters to play a sport in high school because it meant a “free ride” for 4 years.
Oh and we pay for free cells phones for the dregs that are in section 8 housing we subsidize. And don’t forget WIC. (free cheese for expected mothers).
It would be great with your Income tax form you fill out, you have check boxes for programs that you want your tax dollars to go too. Like you check, defense, National Parks and WIC, if so inclined. Then money people pay in taxes goes where they want it to. I don’t want mine going to Planned Parent hood or Social Security disability bene’s. The money they get from the checked boxes on tax forms, well that is the budget for the specific department, that’s all they get. No more. Dept. Of Education gets $50 from one person, then there should be a massive layoff in D.O.E. Pretty simple. No default, they work with what they get.
You just can’t keep adding People to Social security disability no matter how good a lawyer they hire. We can’t afford it no more. War on Poverty has Bankrupted us. Lawyers advertise on TV they can get you on SSI. Its bad.
Should we just nickname this president Edom? (Gen. 25:30-34)
It seems appropriate given that U S commercial interests will be begging rides into space next month from the Russians.
I literally can’t believe that our Nation has given up the “Giant leap for Mankind” for a free lunch…
Wasn’t there something about repeating what we don’t learn from history?