He’s at it again.
“If that happens, and we default, we would not have enough money to pay all of our bills – bills that include monthly Social Security checks, veterans’ benefits, and the government contracts we’ve signed with thousands of businesses.”
….Obama, July 25 2011 Press Conference on the debt ceiling.
What sort of a moron is this guy? He KNOWS he is lying…Timmy Turbotax Geithner knows he is lying…the American people know he is lying…and yet he continues to have press conference after press conference where he repeats the same old dribble.
I am convinced this guy believes that if he says something often enough or loud enough, people will believe it is true. Well, the only people who believe this BS are Obama and his sycophants!
Once more he uses bully tactics from his bully pulpit to try to bully people into believing his bull.
Of course, this does not surprise me…it is his standard practice.
But for those of you who are worried about the country paying Social Security as Obama likes to threaten, let me tell you what can happen.
It is so simple, even a 5 year old can understand this.
The Social Security Administration takes money from your paycheck to put away for your retirement. To protect YOUR money, federal laws were enacted to ensure that Social Security gets paid on time every time. You see, Obama has no choice…he must pay SS.
But of course, the Ponzi scheme that is Social Security does not have any actual cash. The Social Security Administration has lent that money to the treasury and has IOU’s from the treasury supporting the amount owed by the treasury to the SS Administration.
Think of it as you lending money to your brother. He has good credit, strong income, and so his IOU is good. You don’t mind lending him the money because you know that when you need it back, he has no choice but to give it back. Of course, if he has no money, there is nothing you can do…but you have checked his credit facilities and he has plenty of credit available so he can always borrow the money and pay you back.
So, now we find out that the treasury has hit its credit limit, and cannot borrow any money to pay back the SS Administration. Obama would have you believe that this means that SS payments will not go out. Utter BS.
Here is how it will work. We know that there is enough cash coming in to more than cover the SS payments. So, the SS Administration simply calls in its IOU and forces the government to pay back that part of its borrowings. The SS Administration can then send out the SS checks as it should.
However, the Treasury now has that much less money in its coffers to meet other liabilities. And it really needs the money it just paid back to the Social Security Administration.
Hmmmm…what to do?
Duh!! Even a child can see the solution. Because the treasury paid back an IOU, its total debt has dropped by almost the same amount. The treasury is now below its debt ceiling and can go out and borrow the same amount it paid back to the SS Administration. (There would be a small difference due to interest costs, but it would remain virtually dollar for dollar.)
So, let me get this straight for you….
1. Use the treasury cash flow to repay a loan from SS Administration so that they in turn can pay SS
2. Use the now lower debt levels to borrow that same amount from external parties to replace the cash sent to SS Administration.
The total amount of debt owed by the treasury has not changed. The government remains below it’s debt ceiling, and SS checks get sent out.
So…why is Obama threatening social security?
Apart from the obvious political campaigning tricks, and the bullying attempts, there is only one reason why Obama is threatening SS payments.
One little reason that, if true, is cause for far greater concern than a debt ceiling!
What if the treasury has not recorded it’s debt to the Social Security Administration as debt? What if it is NOT included in the reported debt levels? What if the money that was taken from your pay and my pay has been spent by the government but has not been reported as debt?
If that has happened, then not receiving your SS on the due date will soon become the least of your problems.
If it hasn’t happened, and the debt has been included, then why does Obama keep telling us that SS payments will not be paid?
Let’s go back to your brother and assume you ask him to pay you back. He says he has no money, and his credit limit is tanked. He says he is broke and can’t pay you back. He then asks you to give him some more money and he will hold it safely for you. What do you do?
That’s what I thought.
Either Obama is lying once more about the SS payments not going out, or, he and previous presidents have stolen our retirement money and have no way of returning it.
Madoff has nothing on this guy!!
Stupid is as stupid says.