The drama taking place in Washington DC is just more posturing by the politicians and POTUS. Don’t worry, the checks will go out in August unless Geithner and Obama specifically say they should not. The United States Treasury takes in $200 billion each and every month and only has to cover $160 billion in ‘must be paid’ debt obligations. You do the math. After covering $160 billion then decisions have to be made about paying for everything else.
President Obama told CBS News today that he “cannot guarantee that those [Social Security] 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.”
But wait just a minute. If Washington receives about $200 billion in monthly revenues and sends out roughly $50 billion worth of Social Security checks and the same amount of Medicare payments, why is Obama claiming the checks may not go out?
Isn’t $200 billion minus $100 billion still $100 billion?
Because Obama is playing the demogogue, that’s why. Pure and simple. He is trying to scare seniors into making panicked calls to their congressmen begging them to do whatever Obama and the Democrats want in order to keep the checks coming.
This is demogoguery of the worst sort because Obama has to know that what he is saying is false. When you and I say something we know to be false, it’s called a “lie.”
Clearly, it is of no matter to Obama that hiking taxes and raising the national debt limit very likely will keep millions of Americans unemployed and hobble the economy for years to come. All he has to do is scare enough voters long enough to get through the November 2012 election to get himself re-elected.
Here are the facts, as reported by MarketWatch and the Bipartisan Policy Center. You do the math:
* The federal government receives approximately $200 billion in revenues each month.
* Interest on the national debt in August will be approximately $29 billion.
* Social Security will cost about $49. 2 billion.
* Medicare and Medicaid will cost about $50 billion.
* Active duty military pay will cost about $2.9 billion.
* Veterans affairs programs will cost about $2.9 billion.
If you’ve been punching buttons on your calculator, you know that still leaves $39 billion each month. This is where Obama and the Democrats most fear to go. If Congress doesn’t agree to raise taxes and the national debt limit, they will then have to make the tough choices about which of the remaining programs gets paid or cut and by how much:
* Defense vendors
* IRS refunds
* Food stamps and welfare
* Unemployment benefits
* Department of Education
* Department of Housing and Urban Development
* Department of Justice, etc. etc.
So the next time you hear Obama, or Senate Majority Leader Harry Reid, or Sen. Charles Schumer, D-NY, or House Minority Leader Nancy Pelosi, or any of the multiple Democratic echo chambers in the liberal mainstream media, remember – what they are saying is pure demogoguery.