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.
Read the rest here:
Lets go to the video;
Folks, I apologise for the quality of the video, I spent an hour trying to embed the CBS Video, but it wouldn't go... this was the only one of the segment I could find on utube
Does the President have the power to actually do that?
In a word, Yes..
In the event of default the President Obama and Treasury Secretary Tim Geithner will decide what bills get paid.. The President will try to make it the fault of others, he always does but in the end it's his call who gets paid, and who doesn't. Normally bond holders are the last in line to get paid. In spite of the 2 1/2 Trillion Dollar Surplus the American people have paid into the fund, there is no cash in the fund.. The Government has taken it all and replaced it with Junk US Treasury Bonds..
Just like China, Japan and the American People that hold US Government Bonds, Social Security will be standing in line waiting to see if the Administration deems them one of the bond holders to get paid. To make matters worse, as the President said, it will be the recipients of all the Government Trust Fund Retirement Programs in jeopardy.
Combined the Trust Funds represent roughly a third of the national debt and include people who receive payments from the Rail Road Retirement Trust Fund and the Federal Retirememt Trust Fund.. I am not certain if it will affect Military Retirement Checks or not.
Will he actually do do it?
Personally I doubt it, I think he's posturing and blowing smoke out of his ass. I don't think it's any more than a scare tactic.
My reasoning is fairly simple, if he does it, plain and simple; people, a lot of people are going to die. There's a huge number of Americans who are flat broke by the time they get their checks every month, the pantry is very bare, some will starve within a week or so.. Other's won't be able to get their medications. If it goes on for any length of time, many seniors will have their electricty turned off, late August heat without power will be be fatal to some
If he thinks seniors don't like him now, they'll loath him if he does this..
On the other hand, it's possible the narsistic son of a bitch sees this as a way to reduce the surplus population as well as reduce Social Security and Medicare Spending..
Either way the democrats might want to consider ditching the bastard..
Even so I believe the republicans should call his bluff. The democratic party leadership is well aware of what will happen in the 2012 elections if he tries actually doing this. Before they see that, they will happily throw him to the mobs that will be gathered around the White House.
And yes, I would be one of the seniors seriouly affected by a stunt like this.