Topic: Geithner - 48 hours to reach deal

[Pandora]

Geithner wants debt limit deal by next week

O rly.  How's it feel to want, Timmy.

He's as full of it as the others running around screaming "default".  Some, way smarter than I, have already stated we will not default -- as in, fail to meet debt-payments -- as there's tax revenue enough to meet that obligation.

This sky-is-falling is another attempt to scare-monger the general public into pushing the Republicans into capitulation instead of standing firm.  There is no more road left down which to kick the fiscal can.

STAND!

[Pandora]

More scare-mongering:

President Obama on Tuesday said he cannot guarantee that retirees will receive their Social Security checks August 3 if Democrats and Republicans in Washington do not reach an agreement on reducing the deficit in the coming weeks.

"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," Mr. Obama said in an interview with CBS Evening News anchor Scott Pelley, according to excerpts released by CBS News.

The Obama administration and many economists have warned of economic catastrophe if the United States does not raise the amount it is legally allowed to borrow by August 2.

Dispersal of SS checks is automatic.  Betcha few seniors are aware of this little detail.

So, what's he planning?  Reprogramming all the computer-operated systems that handle that?

I hatez them.

[IronDioPriest]

As Bachmann said on O'Reilly last night, we are collecting enough tax revenue to make the payments on the debt, ensure our military is funded, entitlements paid, and other functions deemed "essential" are fully paid for. But after those obligations are paid for, choices need to be made.

Defaulting on our debt is not the automatic consequence of failure to raise the debt ceiling. It is a choice. Do we default, or pay the debt at the expense of defunding a myriad of government bureaucracies and boondoggles? That is what is at issue.

[Pandora]

Yep.

Duh Wun/merry band of thugs just want to keep spending and taxing and they cannot be allowed to that.  Period.

Dozens -- hundreds -- of agencies and bureaus can be kissed goodbye and no one would care except the government employees.  For which I have no sympathy whatsoever.

[Pandora]

The above budget is in rough balance. It would not increase debt, so the debt ceiling would not have to be raised or violated. It would also preserve the core functions of the federal government, and then some. Note some key features:

    Net interest is paid in full. No default.
    Social Security and Medicare are completely covered.
    Federal retirement and disability programs would also be fully funded.
    The men and women of the military would continue getting paid in full.
    Federal prisons and correctional facilities would continue to operate.
    Funds for disaster relief are preserved.
    General government would be funded enough to keep operating. That includes the courts, legislative functions, the executive branch, and foreign affairs.
    There is still funding for infrastructure, science, agriculture, etc.

Of course, deep and painful cuts would have to come from somewhere.

Education spending is eliminated in the above budget. But note that the federal government accounts for less than 10% of total public education spending. Public schools would have to survive on the 90% of planned budgets that come from state and local governments.  But they also would be relieved of federal mandates and rules.  Would that be so bad?   The Dept. of Education did not even exist prior to 1980; it was given to us by President Jimmy Carter.  We lived without it before; we can live without it now.

Energy spending is also zeroed out in the above budget. But net spending on energy was below $1B in each year from 1999 through 2008. In some years, the federal government made money in energy. The recent explosion in energy spending has come entirely since Obama entered office and started so many "green" initiatives. The Dept. of Energy is another gift from Jimmy Carter. We have learned we can live without this spending.

The above budget also eliminates foreign aid, housing assistance, food and nutrition assistance, other income security spending, community development and area and regional development.

The above budget reduces most of the other spending areas back to 2005 levels. In some cases, like federal law enforcement (e.g., Drug Enforcement Agency, Bureau of Alcohol, Tobacco and Firearms), the cuts are even deeper. (But full funding is retained for federal correctional activities.)

The above exercise was not a statement of some kind of preferred budget. It was simply an exercise to see how bad it would be to live within the current debt ceiling. And the arithmetic says it is possible. Not only is it possible, but it could be done without defaulting on the debt and without touching the entitlement programs of Social Security and Medicare. Feel free to look at the numbers and arrange to your taste. There are many ways to cut 30% from projected spending.

In round numbers, the federal government would have to live on what it did in 2005. It would not have to be the end of the world. It certainly would not have to mean default. In fact, it is disingenuous to conflate not raising the debt ceiling with defaulting on sovereign debt.

Personally, I think a lot of areas could use some cutting. Maybe we fiscal conservatives should not let this crisis go to waste. Now could be a great time to get rid of the Departments of Education and Energy and virtually eliminate their budgets. Now could be a great time to throttle back on the intrusive police powers of the DEA and BATF. Now could be a great time to get the federal government out of market manipulation in housing and other "commerce", and end a lot of crony capitalism and corruption by taking some piggy banks away from bureaucrats.

The trouble is that the decisions on where to cut would come from the Treasury Secretary and ultimately President Obama. At least that is how I understand the process, which is fraught with legal and constitutional uncertainties.

That is, the real danger is not in the debt ceiling itself, but in giving Obama the power to cut $1.1 trillion however he pleases.

http://www.americanthinker.com/2011/07/debt_ceiling_worst_case_scenario.html

[warpmine]

More so, the bonds that represent the SSI money , by law, must be paid just as any foriegn or domestic bond holder. If he refuses to authorize payment, he's in violation, once again of his sworn oath, impeachable offense.

Of course this means little to a GOP led House that's lterally clueless.

[charlesoakwood]

Something about the 14th Amendment being violated which is also an impeachable offense.

I think a lot of seniors would be glad to forfeit their checks if he could be, at one time, stuffed with them all.

[IronDioPriest]

Hell, this guy could stab John Boehner in the chest in front of the press corps and the GOP would wring their hands over the political implications of impeachment.

Damn, but I'm so sick of this. Lord help me.

[RickZ]

Duh Wun/merry band of thugs just want to keep spending and taxing and they cannot be allowed to that.  Period.

I heard this story within the last week about GHW Bush and taxes.  It was before I was a political junkie as well as before the growth of the internet into an everyday staple, and those two items, in my case, go hand in hand.

GHW Bush famously made the remark, 'Read my lips:  No new taxes!'  Apparently, after Gulf War I, taxes had to be raised, so a budget deal was made with the House Democrats (led by the Speaker, Tom Foley, D-WA) where taxes would be raised along with spending cuts.  Well, taxes were raised, but the Democrats never followed through on their promise to cut spending.  The tax raise was then used against Bush in the '92 campaign (Bush's 'read my lips' quote was used in a negative campaign ad of which I have a vague recollection), and was a factor in his defeat.  So the Democrats reneged on spending cuts back then and I have no reason to believe they'll follow through on any spending cuts in a debt ceiling/tax increase-spending cuts deal worked out with Obama now, especially considering the ideological demogoguery coming from Obama and the Dems this time around (I don't remember them being quite so communist back in 1990-1992).  Better to die on this budget hill now than to be the Charlie Brown character where every fall he falls for Lucy's ruse of holding the football for him to kick and when he tries to, gets the football yanked back and he ends up kicking air and flying up only to land flat on the ground on his back.  Democrats lie, and the sooner the Republicans grasp this basic political reality, the better off the country will be.

[warpmine]

Duh Wun/merry band of thugs just want to keep spending and taxing and they cannot be allowed to that.  Period.

I heard this story within the last week about GHW Bush and taxes.  It was before I was a political junkie as well as before the growth of the internet into an everyday staple, and those two items, in my case, go hand in hand.

GHW Bush famously made the remark, 'Read my lips:  No new taxes!'  Apparently, after Gulf War I, taxes had to be raised, so a budget deal was made with the House Democrats (led by the Speaker, Tom Foley, D-WA) where taxes would be raised along with spending cuts.  Well, taxes were raised, but the Democrats never followed through on their promise to cut spending.  The tax raise was then used against Bush in the '92 campaign (Bush's 'read my lips' quote was used in a negative campaign ad of which I have a vague recollection), and was a factor in his defeat.  So the Democrats reneged on spending cuts back then and I have no reason to believe they'll follow through on any spending cuts in a debt ceiling/tax increase-spending cuts deal worked out with Obama now, especially considering the ideological demogoguery coming from Obama and the Dems this time around (I don't remember them being quite so communist back in 1990-1992).  Better to die on this budget hill now than to be the Charlie Brown character where every fall he falls for Lucy's ruse of holding the football for him to kick and when he tries to, gets the football yanked back and he ends up kicking air and flying up only to land flat on the ground on his back.  Democrats lie, and the sooner the Republicans grasp this basic political reality, the better off the country will be.

Problem is most know they lie but care so little for their oath and sipposed values.

[Libertas]

Our feckless leaders are blinking, and soon they'll be in their proper position...grabbing their ankles and pleading with constituents that they tried really really hard but we just can't do what you ask!

Uhh huh...

I hope oblivion is something you enjoy!

 

 

[Pandora]

Duh Wun/merry band of thugs just want to keep spending and taxing and they cannot be allowed to that.  Period.

I heard this story within the last week about GHW Bush and taxes.  It was before I was a political junkie as well as before the growth of the internet into an everyday staple, and those two items, in my case, go hand in hand.

GHW Bush famously made the remark, 'Read my lips:  No new taxes!'  Apparently, after Gulf War I, taxes had to be raised, so a budget deal was made with the House Democrats (led by the Speaker, Tom Foley, D-WA) where taxes would be raised along with spending cuts.  Well, taxes were raised, but the Democrats never followed through on their promise to cut spending.  The tax raise was then used against Bush in the '92 campaign (Bush's 'read my lips' quote was used in a negative campaign ad of which I have a vague recollection), and was a factor in his defeat.  So the Democrats reneged on spending cuts back then and I have no reason to believe they'll follow through on any spending cuts in a debt ceiling/tax increase-spending cuts deal worked out with Obama now, especially considering the ideological demogoguery coming from Obama and the Dems this time around (I don't remember them being quite so communist back in 1990-1992).  Better to die on this budget hill now than to be the Charlie Brown character where every fall he falls for Lucy's ruse of holding the football for him to kick and when he tries to, gets the football yanked back and he ends up kicking air and flying up only to land flat on the ground on his back.  Democrats lie, and the sooner the Republicans grasp this basic political reality, the better off the country will be.

The Dems pulled the same sh i t with Reagan ~~ raise taxes today for spending cuts next Tuesday ~~ so sandbagging Bush 41 was not a new tactic.

If the Republicans can't see themselves in the Charlie Brown position, again, they're beyond help.

[Libertas]

"If the Republicans can't see themselves in the Charlie Brown position, again, they're beyond help."

That's a big 10-4!

[Pandora]

SO!  Apparently the Fckstick in Chief can simply have Treasury withhold the checks, it being under Executive authority:

(WASHINGTON) – During this morning's Budget Committee meeting, Congressman Huelskamp asked Stephen Goss, Chief Actuary for the Social Security Administration, to explain how the Obama administration could withhold Social Security checks to American seniors. The question was prompted by a statement by President Obama that he could not guarantee that Social Security checks would be mailed August 3, 2011, if Congress fails to increase the debt limit. Yesterday, Congressman Huelskamp issued a statement noting that it is irresponsible for the President to use seniors on Social Security as pawns to leverage his point in the debt limit negotiations.

Mr. Goss told Congressman Huelskamp: "The responsibility of the Social Security Administration per se, my boss, Commissioner Astrue, is to in fact determine how much in the way of benefit payments people are supposed to receive. We send that information actually over to the Department of the Treasury. They are the ones who actually send out the payments, whether it's electronic funds, transfers, or check."

While showing the chart below during the hearing, Congressman Huelskamp pointed out that there are sufficient receipts to cover Social Security payments, and noted that, "I see under no circumstances - unless it was a political decision - that the administration would refuse or withhold Social Security checks, because there are sufficient receipts."

http://huelskamp.house.gov/index.php?option=com_content&view=article&id=3450:chief-actuary-confirms-withholding-social-security-checks-a-decision-for-the-treasury&catid=48:2011-press-releases

I almost hope he does it.  Forget the White Panthers; the Grey Panthers will make him one sorry sonofabtch.

[Libertas]

Yeah, he's full of himself...which is to say he's full of sh*t!

When he had his panties in a bunch and stormed out of the meeting today...did ya hear that?  I guess he told Cantor he "isn't bluffing".  BS!  It's all he has, and if he pulls this crap, he's toast.

Do it dick, I dare ya!

[Pandora]

Yeah, he's full of himself...which is to say he's full of sh*t!

When he had his panties in a bunch and stormed out of the meeting today...did ya hear that?  I guess he told Cantor he "isn't bluffing".  BS!  It's all he has, and if he pulls this crap, he's toast.

Do it dick, I dare ya!

His exact words were "don't call my bluff".

Which means, in my book, he was bluffing.

Off with his ... er ... well, he doesn't have any, does he.

[Libertas]

Yeah, he's full of himself...which is to say he's full of sh*t!

When he had his panties in a bunch and stormed out of the meeting today...did ya hear that?  I guess he told Cantor he "isn't bluffing".  BS!  It's all he has, and if he pulls this crap, he's toast.

Do it dick, I dare ya!

His exact words were "don't call my bluff".

Which means, in my book, he was bluffing.

Off with his ... er ... well, he doesn't have any, does he.

No.

The boy emperor has...zip!

The Repub's have to know they have the high hand, this punk is drawing blind and nothing left to put in the pot.

Time to drop the hammer on him!

And this whole withholding check crap has me steaming!  What BS!  By prioritizing and paying interest payments first there is no default!  And passing the artificial deadline means they have to, see HAVE TO, cut spending 30 some percent in order to be in a position to not be required to float NEW debt!

The effing MFM & The Regime are LYING TO THE AMERICAN PEOPLE...deliberately!!!

 

[Alphabet Soup]

"I'll gladly pay you Tuesday for a debt limit increase today!"

[Pandora]

That ^^.

[Glock32]

I think Rush nailed it the other day, when he rhetorically asked why we even have a debt ceiling if it's so freakin' imperative that we blast through it. The whole reason we have it is so that Democrats can indulge in this media fest every 18-24 months -- "Republicans hate old people" "Republicans want children to starve" "Republicans want you to die in a gutter if you get sick" ad nauseam. Pure, unbridled, shameless demagoguery.