SNIP Is anyone else here following the news concerning the possibility of Social Security checks not going out next month with rapt, almost morbid, fascination?
Its a scare tactic. Nothing more. Don't worry about your checks.
The only problem is paying on the national debt. The government has revenues coming in. The only reason it is a problem is because they don't want to cut spending enough elsewhere to 1) make the payments on the debt, and 2) end the need to borrow--create more national debt.
Think about it. They want to increase their ability to borrow so they can keep spending beyond their means. That's really all it means. And, increase their ability to borrow to spend beyond their means by a lot.
While substantial, the interest payments on the national debt are not unpayable.
Think about it. They could have had the debate about cutting spending and reducing borrowing whenever. Anytime. But, instead they keep piling on debt and wait until the former bankster Tim Geithner says it
must be addressed. Which is all anybody's been telling them for
decades. But, the sleight of hand is which "it" must be addressed. Borrowing, spending? Neither. The "it" they selected as their bogey-man was payments on the national debt and the US credit rating and (gasp) the consequences of not being able to borrow to spend beyond their means (Oh! noz!.)
Its a high-stakes game politically because the people are paying attention. Cut here and die. Raise taxes there and die. Since it is high-stakes, brinksmanship is being played--hard. They're going to take it right to the brink because neither side wants to be the one that cut or raised taxes--either one hurts somebody who will vote accordingly.
They won't let a default occur--too many banksters want their pound of flesh. They'll play brinksmanship right up to the very last possible moment, then they'll raise the debt limit, and likely raise taxes, with a few token spending cuts.
Whichever way it goes, they won't be cutting out social security checks. Its a scare tactic. One of the things usually done is to threaten to cut services people actually want to scare them into going along with whatever non-solution the politicians really want, rather than cut back on all the nonsense expenses. But, that's all it is. A scare tactic.
They could just tell each government agency to immediately find 5% (or some realistic number) to stop spending NOW, and suddenly we'd have enough money to service the debt. And, maybe even stop borrowing billions at a time. Think about it. The debt ceiling going up over and over means the government has been spending beyond its means non-stop since... Not just spending every dime they take in. But, borrowing to spend more than they take in.
If you want to know more about this, hunt up and follow libertarian blogs. Include a blog called Economic Policy Journal in the mix.