Thread: Obama ‘cannot guarantee’ benefits checks will be paid if debt deal isn’t reached

By Holly Bailey Senior Political Reporter The Ticket – 4 hrs ago

President Obama warned Tuesday that retirees might not receive their Social Security checks next month if lawmakers fail to reach an agreement on how to reduce the federal debt.

"I cannot guarantee that those checks go out on Aug. 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it," Obama told CBS's Scott Pelley in an interview set to air tonight on the CBS Evening News.

Roughly $20 billion in Social Security checks are set to be mailed out on Aug. 3--a day after the Treasury Department says the U.S. will begin defaulting on its financial obligations unless the debt ceiling is raised.

But the president cautioned that it's more than just Social Security checks that could be affected. "These are veterans' checks. These are folks on disability," Obama said, according to excerpts released by CBS News. "There are about 70 million checks that go out."

You can watch an excerpt of the interview here, courtesy CBS News.

The president's comments come a day after he warned of dire financial consequences should Republicans and Democrats fail to come to an agreement on raising the debt ceiling and paying down the deficit. In a press conference yesterday, Obama said if Republicans fail to compromise on a debt deal that it could "throw millions of more people out of work."

Obama and congressional leaders are set to meet again later today as the two sides continue to bicker over the debt ceiling and how to shore up the nation's dire fiscal state. The White House is pressing for an agreement by July 22nd--a little over a week before Aug. 2, the date when Treasury officials say the U.S. will hit its debt limit.

The president said Monday he wants a large scale agreement that will tackle both the debt ceiling and deficit reduction until after the 2012 elections. He insisted he will veto any short-term, stop-gap measure aimed at continuing the debate. But Republicans have signaled they won't accept a deal that could result in a tax increase and are now pressing for either a smaller agreement, focusing just on the debt ceiling, or a measure that possibly includes the repeal of Obama's health care plan.

On Tuesday, Senate GOP leader Mitch McConnell said he believes it's unlikely a deal to fix to the nation's deficit problems will be reached until Obama leaves office because the administration has expressed a "fundamental unwillingness" to agree to major spending cuts.

"After years of discussions and months of negotiations, I have little question that as long as this president is in the Oval Office, a real solution is unattainable," McConnell said in a Senate floor speech.

http://news.yahoo.com/blogs/ticket/o...3Rpb25z;_ylv=3

comments

What does not make any sense is the fact that as of January 1st all working tax payers contribution to SS was reduced from 6.2% to 4.2% with the promise that the government will make up the difference. Really?

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Cut off all foreign aid, no more presidential trips (or family trips) but don't mess with two things: Social Security benefits and military pay. Congress and the rest of this Administration can wait for theirs. Scare tactics like this don't serve a purpose. I can't believe a President would actually say something like this.

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Social Security is supposed to be in a lock box. If they can't cut the checks that means they spent the money

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I'm sure that all the politicians will still get paid though.

The first checks to be held up should be those for the 537 buffoons in Washington. These clowns get all the perks and pay nothing and do nothing for them. We get screwed and have to pay for that too.

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I can't believe what I am reading. I actually take that as a threat to my well being. You can't get the debt straightened out so you are going to keep MY money. What part of the ransom note did I miss. I have just about had enough. Grown men playing such terrible games with individuals such as myself that depend on social security to live not just exist but to live. Like pay my mortgage, health insurance, meds or and food to eat. What has happened to this country. I worked hard all my life, 2 and even 3 jobs to support my family, pay my taxes and even put money away in a ira for retirement. Here I sit with my ira next to nothing because of the economy and now you are going to hold my social security check for ransom.

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SO THEY ARE GOING TO PAY FORIGN COUNTRIES FIRST AND SCREW THE AMERICAN PEOPLE ?!?

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What about foreign aid. Why don't we ever hear about immediate cuts in foreign aid (outside of humanitarian aid).

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You know, as many other posters, I have paid my taxes for over thirty years and my parents for 40 before that. We've all paid into Social Security. Our parents will see part of what they paid in, but my husband and I never will. I don't see Social Security as an "entitlement" for seniors. They've paid it and should get it back. If the government would have stopped robbing Peter to pay Paul it would not be in the mess its in. If I wanted to just keep raising my debt ceiling whenever I wanted to spend more, the credit card companies and banks would laugh me out of their offices or off the phone. Why should the government be allowed to just have a limitless revolving account with our money???