FFS, Obama Did NOT Threaten To Stop Social Security Checks!

[KittyWampus]

He merely pointed out the FACT that if Republicans don't raise the debt ceiling, the govt coffers might be empty and the checks might not go out.

He wasn't threatening to do it himself.

Honestly!

In answer to a question during an interview, he highlighted the possibility due to Republican inaction.

[SSDA]

1. I took it as

His admitting there is no trust fund at all and the whole thing is basically a ponzi scam.

[Ruby the Liberal]

2. +1 That was the most alarming statement

He conflated SS with the budget and deficit - something FDR built in a separate so that "no politician in the future could fuck with it" (paraphrased, obviously).

He should never have gone there because anyone who has taken Civics 101 knows it is bullshit.

[iwishiwas]

4. Repugs and the media conflate it on purpose.

[tsuki]

5. It is not a Ponzi scam, ask John Mellon Scaife. He received, at

the time of his divorce, 3 million a month from his grandfather's TRUST FUND. His grandfather's money was MANAGED by a team, not embezzled. So, he received money.

Social Security is a 2.6 trillion dollar TRUST FUND that has been embezzled by the managers to give a 2.4 trillion dollar tax break to the moneyed elite in the largest transfer of wealth from the middle class to the moneyed elite. Embezzling a trust fund does not make it a Ponzi Scheme.

On the other hand, a 401(K)could possibly be classified as a Ponzi Scheme.

[ljm2002]

21. He admitted no such thing...

...and if he had he would have been wrong.

It is not anything like a Ponzi scheme. That is what the Republicans want us all to think, so we'll be more open to the idea of getting rid of it.

[EC]

25. There is no trust fund.

It's in Treasury Bills. SS payments are made out of FICA without touching the Treasury Bills which accrue interest. We are now using the interest in payments too, with lower revenue. So what he was saying is that there may not be enough LIQUID assets to pay out for all the payments due out.

[Roselma]

3. The banner on Drudge Report says

"OBAMA THREATENS TO HOLD UP SOCIAL SECURITY CHECKS"

then when you click on the banner, it takes you to the CBS website where Obama doesn't threaten to hold up Social Security checks. I think Drudge is counting on the fact that the vast majority of his readers won't click on the link.

[reformist2]

10. That's a pretty irresponsible headline, even for Drudge.

I think everyone in the Fox News crowd is starting to develop a siege mentality these days, as the walls close in around them all...

[Cereal Kyller]

23. "Irresponsible" is not in Matty's dictionary

Thread recced.

[Pirate Smile]

6. Are some people here pushing that RW meme now?

[RaleighNCDUer]

12. Other than the OP, you mean? nt

[Renew Deal]

7. Obama beats kittens too!

:D

[LuckyTheDog]

8. I have suggested using Facebook to counter that meme

See this: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1478389

[RaleighNCDUer]

9. Problem is, SS has NOTHING to do with government coffers.

It is outside the general revenue, has it's own accounts and would be completely untouched by the debt ceiling.

[reformist2]

11. Not this year. Because of the 2% payroll tax cut, even SS needs borrrowed money. :/

I knew the Dems should never have gone along with that payroll tax cut. It was a trap!

[LuckyTheDog]

13. Ummm... no

Social Security's accounts are full of government bonds, which the Social Security Administration won't be able to cash in if the feds default.

[reformist2]

14. I forgot about that. But wait, why couldn't SS sell bonds to raise cash?

[LuckyTheDog]

15. Let me see...

... going to the open market to sell bonds backed by the "full faith and credit of the U.S. government" when the government is in default and has a D credit rating?

How well do you think that would go? It'd mean taking big losses.

I suppose it could be an option. But by Aug. 2? I don't think so.

[reformist2]

16. So they could sell them, just at a big discount.

Yet another way for the rich to make money!

[LuckyTheDog]

18. And they could do that...

... only if the Congress gave the Social Security Administration the right to sell its "special issue" bonds to somebody other than the treasury. As of now, it can't.

[Kaleva]

22. But the govt. workers who send out the checks are paid out of the general revenue.

Also, the postal employees who deliver the checks are also paid out of the general revenue fund.

[SanchoPanza]

24. There is a difference between money for SS checks and money to pay people to mail them.

The difference between revenue and mandatory spending amounts to around $200 billion. That's $200 billion to fund every agency of the Federal government, from the Pentagon to the FBI to the EPA to the Federal courts.

And the Social Security Administration.

[CakeGrrl]

17. Seriously? Someone thought he did that?

[Skittles]

19. EDUCATE YOURSELF, PLEASE

CHEAP TACTIC

[FLAprogressive]

20. Except the debt ceiling is unconstitutional and in complete violation of the full faith and credit

clause.

[Cereal Kyller]

26. This needs more recs

Hence this kick.