Bernanke says if the debt ceiling isn't raised, the US will stop Social Security payments

[David Gill]

From Reuters: http://www.reuters.com/article/2011/07/13/us-usa-debt-idUSTRE7646S620110713?feedType=RSS&feedName=politicsNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Reuters%2FPoliticsNews+%28News+%2F+US+%2F+Politics+News%29|http://www.reuters.com/article/2011/07/13/us-usa-debt-idUSTRE7646S620110713?feedType=RSS&feedName=politicsNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Reuters%2FPoliticsNews+%28News+%2F+US+%2F+Politics+News%29>

If the GOP loses the support of the elderly on this issue, their position of power is severely weakened. Let's hope this gets a lot of play.

[kenny blankenship]

1. So we would pay bondholders, but stiff Grandma?

Oh yeah, we're "Putting people first" - into the chipper-shredder.

[pnwmom]

4. Our Constitution requires that our bondholders be paid.

[SugarShack]

16. Will Congress get paid? Will their benefit pkgs. for healthcare still get paid???? hmmmm

[Eddie Haskell]

2. So much for the "lock box"

Shut em down.

[PoliticAverse]

3. What does the Fed have to do with the debt ceiling?... n/t

[pnwmom]

5. They control the money supply.

[PoliticAverse]

6. Yeah but if the debt ceiling isn't raised it's up to Obama and the Treasury to decide what do pay...

not Ben.

[pnwmom]

9. True, but he's as capable of seeing the writing on the wall as anyone.

We'll be short something like 45% of our budget if we can't issue more debt. We know we have to pay bondholders. There's no way to exempt Social Security, Medicare, Medicaid, SSI and unemployment with such a huge shortfall.

[Cali_Democrat]

15. Controlling the money supply has nothing to do with the debt ceiling...

...and determining which bills get prioritized and paid.

The Treasury department does that and the Treasury Department falls under the executive branch. Essentially it's Obama that determines who gets paid.

[girl gone mad]

7. Bernanke says a lot of dumb things.

Remember this one?

Fed's Bernanke: Subprime Mortgage Problems Contained
March 28, 2007

Federal Reserve Chairman Ben Bernanke told Congress on Wednesday that growing troubles in the market for risky mortgages thus far doesn't appear to be spreading to the overall economy but the situation bears close watching.

"At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained," Bernanke said in prepared testimony to Congress' Joint Economic Committee.

[Maccagirl]

8. Does that mean both Obama and Bernake are lying?

The radio (and probably TeeVEE) have been crammed today with every host screaming "LIAR!!!" at the top of their lungs.

[fredamae]

10. Everybody who Trusts bernake: raise your hand;)

I do, however wonder Why? There is the 14th Amendment thingy that relates to pensions--plus, if the SS Fund is not part of the debt crises and there is plenty of money in the trust fund, Why might they not go out? No workers to process?

[Avalux]

11. Unfortunately, saying this is the ONLY way to make the people who vote for Pukes to wake up.

It's the only thing that can really touch them personally.

[pennylane100]

12. I get social security but could definitely get by if they stop paying us.

However, there are millions of people who live month to month on their social security or disability payments. This will be disastrous for them. Banks or financial institutions that would allow them to take out loans to tide them over until it is settled, would certainly earn the communities goodwill. They could certainly use it.

Charitable institutions should start trying to put something in place to help these people out. What about the meals on wheels programs and food kitchens, would they be affected. I know many of us on DU would respond to a call for volunteers.

[Cali_Democrat]

13. Of course!!! Wall Street bond holders get paid and Social Security recipients get hosed.

Shocking!! :sarcasm:

[DearAbby]

14. Bernanke is putting on pressure

along with pressure the GOP are feeling from the monied bosses really controlling this, they are saying "Times up on your theater boys, raise that ceiling!" It's more pressure on Congress.

Along with the letter from the CEO's and Chamber of Commerce. now the federal reserve is speaking, you know they are gonna listen. They are twisting the screws.

[some guy]

17. Fuck the Benbernank

If the Federal Reserve Corporation wants to get to decide who the government pays and doesn't pay, let them become part of the government first. Nationalize the Fed, then I'll be willing to consider their mouth noises.

:grr:

They shouldn't even fucking exist.

[kestrel91316]

18. The US had damned well better stop payments for all Congressional

salaries, military contractors, and oil/gas subsidies long before it lays a hand on SS or Medicare.